The World Bank’s latest report shows a 0.4% decline in Sub-Saharan Africa’s growth from 4.0% in 2021 to 3.6% in 2022.
Current situation
The World Bank’s biannual analysis on Africa’s macroeconomic outlook shows a projected decline in growth due to factors such as new Covid-19 variants, global inflation rates, supply chain disruptions, and the global economic crisis due to Russia’s invasion of Ukraine.
What they are saying
World Bank Chief Economist for Africa, Albert Zeufack, identified innovative trade policy as a solution to help Sub-Saharan African countries weather the economic situation of the present day. Citing an example of such policies, Albert Zeufack said policy makers could reduce or stop import duties on staple foods to provide relief for citizens of their countries.
By the numbers
The report says that amongst Africa’s three largest economies; Angola, Nigeria, and South Africa, South Africa’s economy is projected to decline by 2.8% in 2022. Angola and Nigeria economies, on the other hand, are expected to increase in 2022, by 2.7 and 0.2% respectively, partially due to elevated oil prices and good potentials in non-oil sectors.
- African countries such as DRC and Zambia should benefit from the global rise in metal prices in both short and medium term. They can gain from the transition from fossil fuels in the future. Experts project a decline of 4.1% and 3.3% respectively in Rwanda and Seychelles this 2022.