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Report forecasts African Economies will grow on average by 3.8% in 2024

Report forecasts African Economies will grow on average by 3.8% in 2024

The African Export-Import Bank (Afreximbank) has unveiled the 2024 Edition of its African Trade Report and African Trade and Economic Outlook at its Annual Meetings (AAM) 2024 in Nassau, The Bahamas.

The African Trade and Economic Outlook Report forecasts that African Economies will grow on average by 3.8 per cent in 2024.

The Report, Titled ‘A Resilient Africa: Delivering Growth in a Turbulent World,’ provides an Analysis of the Economic Environment, Trade Patterns, Debt Scenarios, and future Projections for African Economies.”

A look at the Report which was unveiled on Wednesday showed it is slightly ahead of the predicted Global Growth of 3.2 per cent prior to an increase of 4 per cent in 2025.

Presenting the Reports, Yemi Kale, Afreximbank’s Group Chief Economist and Managing Director of Research and International Cooperation, said: “ Ongoing Global challenges undermined the performance of Africa’s Trade, which contracted by 6.3 per cent in 2023 after expanding by 15.9 per cent in 2022, while Intra-African Trade expanded by 3.2 per cent over the same period.

“This performance is reflective of the resilience of the African Economy and the potential impact of the African Continental Free Trade Area (AfCFTA) Single Market for the Continent as a Tool to protect them from Global Shocks.

“Our Analysis in the Report also revealed large untapped potential in Intra-African Trade, especially concerning Machinery, Electricity, Motor Vehicles, and Food Products.”

The Documents reveal that African Economies faced several Downside Risks, including increasing levels of Sovereign Debt and Associated Sustainability Risks

Others were excessive exposure to adverse Terms-of-Trade Shocks, escalating Geopolitical tensions in some cases, and volatile Domestic Political Environments in certain African Countries and high Commodity Prices and Inflationary pressures, and potential Food Insecurity”

Also, in a Statement, Vincent Musumba, Manager, Communications and Events (Media Relations), Afreximbank , said most Macroeconomic Indicators were expected to improve in 2024 and 2025.

“Growth in the Continent is projected to be higher than the Global Average, and although Inflation is currently high, it is expected to decrease, with this downward trend continuing into 2025.”

Musumba, on the African Trade Report 2024 titled “Climate Implications of the AfCFTA Implementation”, he quoted Kale as saying, “ the Report concludes that the AfCFTA offers a path to achieving the developmental goals of African Nations while also addressing Climate Change concerns.”

Kale said that while the benefits of the AfCFTA could be seen, the Debate on its impact on Climate Change was still ongoing.

“One Group believes that increased Urbanisation and Industrialisation associated with the AfCFTA will worsen Carbon Emissions.

“The second Group believes that by emphasising Intra-African Trade and reducing Extra-African Trade, Carbon Emissions will be eliminated through shorter Shipping Distances.”

Overall, the Report stated that optimising the AfCFTA could result in potential gains through increased Intra-African Trade and Investment.

“This will create Economic prosperity and fulfil the Vision of the Founding Fathers.”

 

Credit NAN: Texts excluding Headline

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