Finance & Economy

Africa to be 2nd fastest growing region in 2023-24, eyes green growth

Published: June 1, 2023

According to the African Development Bank’s (AfDB) 2023 African Economic Outlook, Africa is anticipated to have the second-fastest growth rate in the world, after Asia, between 2023 and 2024, a tribute to its economic resiliency in the face of numerous global shocks. Africa’s post-pandemic recovery will be aided by a forecast GDP growth of 4.3% in 2024, up from 3.8% in 2022. Twenty-two nations will see growth rates higher than 5%.

However, these encouraging prospects depend on world events and Africa’s capacity to increase its economic toughness. In order to reduce the risk involved with private sector investments in natural capital, the report has suggested the establishment of strong laws, particularly those that promote green sectors and substantial guarantees.

At the Bank Group’s Annual Meetings in Sharm, the report was unveiled. El Sheikh, Egypt, was a noteworthy event, attended by African leaders, experts, and development partners. The theme of the meetings was ‘Mobilizing Private Sector Financing for Climate and Green Growth’.
Prof Kevin Urama, the Bank Group’s chief economist and vice president for economic governance and knowledge management, presented the report, detailing potential policies for encouraging more private sector financing for climate and green growth in Africa.
Unveiling the 220-page report, African Development Bank Group president Akinwumi Adesina emphasised the need for African nations to do more, including mobilising more domestic resources and restructuring debt to withstand global headwinds.

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