- According to World Bank’s biannual economic analysis for the region, the Africa Pulse, though the economic growth in Sub-Saharan Africa has contracted by 2.0% in 2020, the prospects for recovery have improved.
- The region had the benefit of the slower spread of the virus, lower COVID-19-related mortality, strong agricultural growth and a faster-than expected recovery in commodity prices that helped many African economies face the economic distortion induced by the COVID-19.
According to World Bank’s biannual economic analysis for the region, the Africa Pulse, though the economic growth in Sub-Saharan Africa has contracted by 2.0% in 2020, the prospects for recovery have improved. The containment measures of the virus and the vaccine rollout seem to have facilitated the process. Additionally, the region had the benefit of a slower spread of the virus, lower COVID-19-related mortality, strong agricultural growth and a faster-than-expected recovery in commodity prices that helped many African economies face the economic distortion induced by the COVID-19.
The report cautions that the economic recovery depends on countries efforts to generate jobs, attract investment, and enhance competitiveness. It acknowledges that the limited additional fiscal support can pose challenges for policymakers to revive the economy.
The recovery rate of Sub-Saharan Africa is expected to differ among countries. Non-resource-intensive countries, such as Côte d’Ivoire and Kenya, and mining rich economies, such as Botswana and Guinea, are expected to record strong growth in 2021, led by private consumption and investment and increase in exports.
In the Eastern and Southern Africa sub-region, South Africa and Angola, the sub region’s largest economies seem to be dragging down the economic growth. The contraction of the region for 2020 is estimated at -3.0%. Economic activity in the sub-region, other than Angola and South Africa, is projected to grow by 2.6% in 2021, and 4.0% in 2022.
Contraction in growth in the Western and Central Africa sub-region stood 1.1% in 2020, lower than the projection in October 2020. Real GDP in the Western and Central Africa sub-region is estimated to grow 2.1% in 2021 and 3.0% in 2022.
To accelerate the recovery process, the Africa’s Pulse urges countries to adopt policies and reforms that boost inclusive productivity, growth and competitiveness and reducing debt burdens to free resources for public investment, in areas such as education, health, and infrastructure. It also recommends Investments in human capital, leveraging the African Continental Free Trade Area, reforms that address digital infrastructure gaps to improve connectivity, boost digital technology adoption, and generate more jobs.
