Public Management

World Bank forecasts 3.4% growth in SSA for 2024 amid persistent inequalities

World Bank forecasts 3.4% growth in SSA for 2024 amid persistent inequalities
Wednesday, 10 April 2024 17:45

Economic growth in the African region behind the Sahara should reach 3.4% this year, according to estimates in the World Bank's latest Africa's Pulse report, published on April 8.

Despite the predicted rebound, the institution warns of persistent inequalities and the need for transformative policies to encourage stronger and more equitable growth across the region. According to the World Bank, the anticipated economic recovery will be driven by increased private consumption and a decline in inflation. However, the outlook remains vulnerable due to uncertain global conditions, rising debt service costs, frequent natural disasters, and escalating conflicts. The report also emphasizes that although growth is expected to recover this year, it remains below the average of the previous decade (2000-2014) and is insufficient to effectively reduce poverty in the region.

The report highlights a decrease in external resources available to African governments, rendering fiscal situations more susceptible to global economic disruptions. Consequently, inequalities continue to impede access to basic services and economic opportunities for the most disadvantaged populations. The 2023 Global Multidimensional Poverty Index (MPI) released in July by the United Nations Development Programme (UNDP) indicates that nearly five out of six impoverished individuals reside in Sub-Saharan Africa or South Asia. In Africa, efforts to reverse the poverty trend in recent years have been slowed by the adverse effects of the COVID-19 crisis and the war in Ukraine.

“Inequality in Africa is largely due to the circumstances in which a child is born and accentuated later in life by obstacles to participating productively in markets and regressive fiscal policies. Identifying and better addressing these structural constraints across the economy offers a road map for a more prosperous future,” said Gabriela Inchauste, the World Bank's Lead Economist for Poverty and Equity and co-author of an upcoming report on combating inequalities in Africa.

To promote stronger and more equitable growth, the World Bank advises governments to implement several policy measures, including restoring macroeconomic stability, promoting intergenerational mobility, and adopting fiscal policies that do not disadvantage the poorest.

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Côte d’Ivoire will receive $234 million for a sustainable urban mobility project in Abidjan. Gambia will receive $32.2 million to build...
Stanbic IBTC and Zenith Bank cut monthly card spending abroad to $500 and $200 Foreign reserves fall by $3.5 billion in six...
Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 million in transactions by end-2025. The fintech...
• Kenya and ASR sign deal to reduce risk on projects worth up to $2 billion.• Risk cover will target infrastructure, energy, logistics, and trade...
Most Read
01

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
02

• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...

Nigeria Secures $100 mln ECOWAS Bank Loan for Lagos-Calabar Coastal Highway
03

• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...

Algeria Awards Commercial 5G Licenses
04

• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...

IFC Plans Investment Fund to Help Grow African Film Industry
05

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.