Promising growth in emerging African markets
West Africa growth projected to pick up, with Senegal, Nigeria and Ghana as shining stars.
The African Development Bank (AfDB) recently revised its growth projections for Africa, highlighting a positive outlook. According to their report, 41 African countries are expected to see stronger growth this year, making Africa the second fastest-growing region globally. East Africa leads in regional growth, while West Africa's growth is projected to rise from 3.6% in 2023 to about 4.2%. Notable performers include Ghana, Nigeria, and Senegal. However, Southern Africa, heavily influenced by South Africa's economy, is estimated to grow from 1.6% to 2.2%.
Lester Kiewit is joined by Crystal Orderson, discussing Africa's adoption of AI technology and its opportunity to grow the continent.
The AfDB emphasizes the need for more private sector participation to complement public investment, crucial for driving economic growth and infrastructure development. As Crystal Orderson explained,
"We do need greater private sector participation to complement the public investment because we do need that investment to get the economies going and get African infrastructure going to ultimately develop human capital."
Several African countries are making significant strides. Mozambique is expected to have the highest projected growth at about 8%, with Rwanda also showing strong performance. In West Africa, Senegal's oil and gas discovery has been transformative.
Additionally, Rwanda's ICT sector and Kenya's leadership in mobile money highlight the importance of technological advancements. However, only eight out of 54 African countries have developed national AI strategies, potentially hindering their progress.
Orderson noted, "Experts argue that if you adopt technology, it can really be a game changer. And if you delay it, it can also just further exacerbate and deepen inequality."
Tanzania is emerging as a star performer in the Southern African Development Community (SADC). Under President Samia Suluhu Hassan's leadership, the country has implemented significant economic reforms. The finance minister announced that Tanzania's economy is projected to grow by 1.4% this year, up from last year's 5.1%.
The economy relies on tourism, mining, agriculture, and manufacturing. Despite challenges from climate change, the World Bank praised Tanzania for maintaining economic stability and market confidence, attracting investment from African banks.
Africa's economic landscape is evolving, with several countries showing promising growth. The AfDB, private sector participation, and technological advancements are driving sustainable finance and development across the continent. As emerging markets like Mozambique, Rwanda, Senegal, and Tanzania rise, the future of Africa's economy looks bright.
Africa Focus, presented by Crystal Orderson, is brought to you by RMB. To find out more about RMB’s focus on Africa’s Investment opportunities, visit the official RMB website.