In 2024, Africa is set to grow significantly, forecasting a 4.0 percent increase, up from 3.3 percent in 2023.
This positions it as the second-fastest-growing region globally, just behind Asia’s 4.8 percent.
Stears, an economic analysis firm, reports these findings, focusing on the continent’s diverse economic landscape.
Leading this growth, East Africa stands out with Ethiopia, Rwanda, Tanzania, and Uganda as key drivers.
These countries are thriving thanks to sectors like natural resources, transportation, tourism, and agriculture.
Additionally, investments from Gulf countries are expected to boost their economies further.
Fadekemi Abiru from Stears notes that these developments could make East Africa a model for economic resilience and diversification.
However, challenges loom in other parts of Africa. Kenya and Nigeria, for instance, are grappling with economic difficulties.
Kenya faces ongoing currency depreciation and inflation, with inflation averaging 7.8 percent in 2023.
Predictions for 2024 range between 6 percent and 7.4 percent, aligning with the Central Bank’s target.
Kenya’s GDP per capita, 30 percent above the sub-Saharan average, signals market growth potential through job creation in manufacturing and services.
In Nigeria, the situation is more pressing with a high inflation rate, currently at 28.2 percent.
Stears forecasts this could average between 27.59 percent and 31.85 percent in 2024. Such high inflation requires immediate action to stabilize the economy.
Factors like the removal of gasoline subsidies and currency devaluation are pushing up costs for both consumers and businesses.
To address these challenges, strategic measures are needed to improve liquidity and stabilize exchange rates.
This requires cooperation between governments, regulatory authorities, and the private sector to foster sustainable growth.
Diverse economic conditions
Stears’ 2024 report also highlights the diverse economic conditions across Africa.
While countries like South Africa, Egypt, and Nigeria may grow below the regional average, East Africa’s robust performance presents a stark contrast.
Recognizing and navigating this diversity is crucial for understanding Africa’s economic potential.
Yvette Dimiri of Stears emphasizes the importance of their 2024 Outlook Report. It aims to provide clear, data-driven insights into Africa’s economic trends.
In short, Africa makes strides on the global stage, leveraging its regional strengths and understanding unique economic paths will be key to its success.