Slowed Down Growth Looms for Sub-Saharan Africa

Oct 7 , 2023

The growth prospects of sub-Saharan countries decelerate with rising instability, weak economic growth, debt distress, and climate shocks, according to a report published by the World Bank last week. It indicates that the economic growth rate is set to decelerate by one percentage point from last year to 2.5pc in 2023. Although inflation has receded, with the decline from 9.3pc to 7.3pc in 2023, 18 African countries have had average annual inflation rates of double digits in 2023. Inflationary pressures dominated by higher food and fuel prices and weakened domestic currencies are eroding household income and weighing on private consumption, the report states. Debt burdens continue to weigh heavily on sub-Saharan African economies, with 21 countries at high risk of external debt distress since June. Africa's Pulse, a bi-annual publication by the Chief Economist in the World Bank Africa Region, analyses the short-term economic prospects for the continent and current development challenges. The urban employment share of the working-age population has remained roughly 23 over the past two decades. Much of the population in the region remains rural and employed in agriculture, which is strongly associated with poverty. The report suggests supporting demand-driven skills, promoting organisational transformation, ensuring political stability, and strengthening institutions to enable a thriving market economy.