INTHEBLACK April 2025 - Magazine - Page 19
SSA is developing the
world’s largest free-trade
area, presenting opportunities
for foreign businesses
and investors.
Forecasters expect the area
to register economic growth
in 2025 and 2026.
A booming natural resources
market is the driving economic
force in the region.
Unlocking
growth in
Sub-Saharan
Africa
Economists are forecasting a welcome period of growth for
Sub-Saharan Africa (SSA) in the next two years, but serious
fiscal, social and political challenges persist in the region.
Words Cameron Cooper
THERE IS A MOOD OF CAUTIOUS
optimism in Sub-Saharan Africa (SSA),
as analysts predict the resource-rich region
will register significant economic growth
during the next two years.
Against a backdrop of falling inflation
for some countries and the potential for
higher private consumption and investment,
the World Bank predicts growth in SSA
to firm to 4.1 per cent in 2025 and
4.3 per cent in 2026 after hovering around
2–3 per cent in recent years.
“This is attributed to easing of financial
conditions domestically and globally, along
with lower inflation rates,” says
Andrew Dabalen, chief economist for
the Africa region at the World Bank.
He notes, though, that growth will remain
uneven across countries in the region.
“The largest two economies, South Africa
and Nigeria, will continue to grow at
a slower pace than the rest of the region,”
he says.
However, the outlook is not being viewed
through rose-coloured glasses. High inflation
in recent years, along with debt vulnerability,
food insecurity and high levels of poverty,
have afflicted an area that can now enjoy
momentum towards becoming the world’s
largest free-trade zone.
intheblack.cpaaustralia.com.au 19
