World Bank says Sub-Saharan Africa's economies remain resilient despite challenges

Sub-Saharan Africa's economies remain resilient with growth projected to reach 3.8 percent this year, up from 3.5 percent in 2024.

The bank upgraded growth forecasts for Ethiopia, Nigeria and Ivory Coast, all major economies in the region.

This acceleration reflects easing inflationary pressures and a modest recovery of investment despite persistent global economic uncertainty.

The World Bank released its latest report on the region on Tuesday.

The number of countries experiencing double-digit inflation has fallen sharp from 23 October 2022 to 10 July 2025, signalling progress in stabilising prices.

But the World Bank said that the downside risks remain, including the indirect effects of global trade policy uncertainty, declining investor appetite and a shrinking pool of external finance.

The Washington-based lender said that external debt service has more than doubled over the past decade, reaching 2 percent of GDP in 2024.

The number of Sub-Saharan African countries in, or at high risk of debt distress, has nearly tripled.

Despite what the World Bank has labelled as resilience, it said that the pace of growth remains insufficient to meaningfully reduce extreme poverty or create the quantity and quality of jobs needed to meet the demands of a rapidly growing labour force.

The report said that reducing the cost of doing business is critical to enable businesses to expand and new high-growth firms to enter the market.

It believes that policies that target the provision of better infrastructure, energy, digital, transport and human capital and skills development are essential for creating an ecosystem for people and businesses to thrive.

"Strengthening institutions and governance can ensure stability, curb corruption, and create a predictable business environment that attracts private sector investment. Stimulating private sector development in sectors such as agribusiness, mining, tourism, healthcare, and housing and construction will also be key. For example, for every job created in tourism, an additional 1.5 jobs are generated in related sectors. With the right reforms and investments, Sub-Saharan Africa can unlock its vast employment potential and chart a path toward inclusive and sustainable growth."