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The
AfDB said political instability and China's economic slowdown
were compounding the shocks of COVID-19 and Russia's war in
Ukraine.
The final figure for 2023 was below the 3.4% growth the AfDB had
forecast in November. It also cut its regional growth estimates
for central and north Africa, amid a recession in oil producer
Equatorial Guinea and the aftermath of devastating flooding in
Libya.
"The shocks buffeting African economies since 2020 have damaged
growth, with long-term implications," the bank said in a report.
Despite the shocks buffeting the region, 15 African countries
posted economic growth of more than 5% last year, the AfDB said,
including Ethiopia, which is restructuring its external debt,
Ivory Coast, Democratic Republic of Congo, Mauritius and Rwanda.
The bank forecast faster growth in all regions except for
central Africa in 2024, with southern Africa seen as remaining
the laggard at 2.2% compared with 5.7% in east Africa.
Southern Africa's "sluggish performance reflects the continued
economic stagnation in South Africa," the bank said, with the
region's largest economy, which holds national elections this
year, predicted to grow 1.1% in 2024, up from 0.8% last year.
"This underwhelming economic situation has aggravated the
country's persistently high unemployment, poverty, and
inequality and prevented it from reaping democratic dividends in
the 30 years since the end of White minority rule," AfDB said.
Nigeria, West Africa's largest economy, is set to grow 2.9% in
2024, up 0.4 percentage points from last year as a sharply
devalued currency pushes up inflation, exacerbating a cost of
living crisis.
In Egypt, high inflation and foreign exchange shortages are
forecast to drag growth down to 3.7% this year, versus 4% in
2023.
(Reporting by Rachel Savage)
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