African Dev’t Bank predicts 4% growth for Cameroon, others.
This is the content of the body’s report on "Africa's Macroeconomic Performance and Prospects". The report was published January 19.
The optimistic projections are explained by the resilience of the five sub-regions including Central Africa, Southern Africa, East Africa, West Africa and North Africa despite the COVID-19 pandemic and the Russian-Ukrainian conflict, the effects of which are still being felt.
As a result, 53 of the 54 African economies have experienced positive Gross Domestic Product, GDP growth even though GDP has slowed to 3.8% in 2022 from 4.8% in 2021.
Another promising factor is the increase (5.5%) in growth that should be recorded on average in 2023-2024, the five best performing African economies of the pre-COVID-19 period.
The performance, it has been said, would allow them to regain their place among the ten most dynamic economies in the world.
The countries are Rwanda (7.9%), Côte d'Ivoire (7.1%), Benin (6.4%), Ethiopia (6.0%) and Tanzania (5.6%).
On the other hand, other African countries are projected to grow by more than 5.5% over the period 2023-24.
These include the Democratic Republic of Congo (6.8%), Gambia (6.4%), Libya (12.9%), Mozambique (6.5%), Niger (9.6%), Senegal (9.4%) and Togo (6.3%).
Need for vigilance
Despite the good prospects, the African Development Bank is drawing the attention of the continent's economies to risks that could aggravate the current situation and change the course of events.
These include soaring market prices, tightening global financial conditions and the associated increase in domestic debt servicing costs, political instability and climate change and its corollary, the food crisis.
To prevent these formidable threats, the institution headed by Akinwumi Adesina, recommends financial solutions focused on the "rapid and aggressive" tightening of monetary policy.
On the trade front, he recommended the stimulation of inter-African trade.
In addition, there are institutional proposals related to good governance and transparency and the adoption of policies to increase private sector financing. In a world where the digital economy is the hub, the AfDB suggests strengthening the capacity of tax administration and investing in digitalisation and e-governance.