Africa will account for eleven of the world’s 20 fastest-growing economies in 2024, the African Development Bank (AfDB) Group said in its latest Macroeconomic Performance and Outlook (MEO).

Overall, real gross domestic product (GDP) growth for the continent is expected to average 3.8 per cent and 4.2 per cent in 2024 and 2025, respectively. This is higher than projected global averages of 2.9 per cent and 3.2 per cent, the report said.

The continent is set to remain the second-fastest-growing region after Asia. The top 11 African countries projected to experience a strong economic performance forecast are Niger (11.2 per cent), Senegal (8.2 per cent), Libya (7.9 per cent), Rwanda (7.2 per cent), Cote d’Ivoire (6.8 per cent) and Ethiopia (6.7 per cent). Others are Benin (6.4 per cent), Djibouti (6.2 per cent), Tanzania (6.1 per cent), Togo (six per cent) and Uganda at six per cent.

“Despite the challenging global and regional economic environment, 15 African countries have posted output expansions of more than five per cent,” Bank’s Group President, Dr Akinwumi Adesina, said, calling for larger pools of financing and several policy interventions to further boost Africa’s growth.

Africa’s Macroeconomic Performance and Outlook, a biannual publication released in the first and third quarters of each year, complements the existing African Economic Outlook (AEO), which focuses on key emerging policy issues relevant to the continent’s development.

The MEO report provides an up-to-date evidence-based assessment of the continent’s recent macroeconomic performance and short-to-medium-term outlook amid dynamic global economic developments.

The latest report is calling for cautious optimism given the challenges posed by global and regional risks. These risks include rising geopolitical tensions, increased regional conflicts, and political instability – all of which could disrupt trade and investment flows, and perpetuate inflationary pressures.

Adesina emphasised that fiscal deficits have improved, as faster-than-expected recovery from the pandemic helped shore up revenue. He explained further: “This has led to a stabilisation of the average fiscal deficit at 4.9 per cent in 2023, like 2022, but significantly less than the 6.9 per cent average fiscal deficit of 2020. The stabilisation is also due to the fiscal consolidation measures, especially in countries with elevated risks of debt distress.”

He cautioned that with the global economy mired in uncertainty, the fiscal positions of the African continent will continue to be vulnerable to global shocks.

The report shows that the medium-term growth outlook for the continent’s five regions is slowly improving, a pointer to the continued resilience of Africa’s economies.

Presenting the key findings of the report, the AfDB’s Chief Economist and Vice President, Prof. Kevin Urama said: “Growth in Africa’s top-performing economies has benefitted from a range of factors, including declining commodity dependence through economic diversification, increasing stra¬tegic investment in key growth sectors and rising both public and private consumption, as well as positive developments in key export markets.”