Nigeria, South Africa, Egypt slowing regional growth, says World Bank

The global bank also identified high inflation and a sharp deceleration of investment growth as other reasons African countries are recording slow growth.

The World Bank noted that in the face of dampened growth prospects and rising debt levels, African governments must sharpen their focus on macroeconomic stability, domestic revenue mobilisation, debt reduction and productive investments to reduce extreme poverty and boost shared prosperity in the medium to long-term.

Relatedly, in the latest Africa’s Pulse, the World Bank projected that economic growth in Sub-Saharan Africa is expected to slow from 3.6 per cent in 2022 to 3.1 per cent this year.

The report stated: “Economic activity in South Africa is set to weaken further in 2023 (0.5 per cent annual growth) as the energy crisis deepens, while the growth recovery in Nigeria for 2023 (2.8 per cent) is still fragile as oil production remains subdued. The real gross domestic product (GDP) growth of the Western and Central Africa subregion is estimated to decline to 3.4 per cent in 2023 from 3.7 per cent in 2022, while that of Eastern and Southern Africa declines to three per cent in 2023 from 3.5 per cent in 2022.”

In his comments on the report, the World Bank Chief Economist for Africa, Andrew Dabalen, said: “Weak growth combined with debt vulnerabilities and dismal investment growth risks a lost decade in poverty reduction. Policymakers need to redouble efforts to curb inflation, boost domestic resource mobilisation and enact pro-growth reforms while continuing to help the poorest households cope with the rising costs of living.”