The latest World Bank Africa’s Pulse report projects that the Nigerian economy will grow at 2.9 per cent in 2023 due to lower international prices and currency pressures affecting oil and non-oil activity.
It added that Sub-Saharan Africa’s economic outlook remains bleak amid an elusive growth recovery.
It warned that Africa must urgently achieve stability, increase growth, and create Jobs.
According to the report, rising instability, weak growth in the region’s largest economies, and lingering uncertainty in the global economy are dragging down growth prospects in the region.
“Nigeria and Angola are projected to grow at 2.9% and 1.3% respectively, due to lower international prices and currency pressures affecting oil and non-oil activity.
“Increased conflict and violence in the region weigh on economic activity, and this rising fragility may be exacerbated by climatic shocks”, the report stated.
It added: “Economic growth in Sub-Saharan Africa is forecast to decelerate to 2.5 percent in 2023, from 3.6 percent in 2022.
“South Africa’s GDP is expected to only grow by 0.5 percent in 2023 as energy and transportation bottlenecks continue to bite.
“In Sudan, economic activity is expected to contract by 12 percent because of the internal conflict which is halting production, destroying human capital, and crippling state capacity.
“In per capita terms, growth in Sub-Saharan Africa has not increased since 2015.
“In fact, the region is projected to contract at an annual average rate per capita of 0.1 percent over 2015-2025, thus potentially marking a lost decade of growth in the aftermath of the 2014-15 plunge in commodity prices.”
Commenting of the report, the World Bank chief economist for Africa said, Andrew Dabalen said: “The region’s poorest and most vulnerable people continue to bear the economic brunt of this slowdown, as weak growth translates into slow poverty reduction and poor job growth.
“With up to 12 million young Africans entering the labor market across the region each year, it has never been more urgent for policymakers to transform their economies and deliver growth to people through better jobs.”
Current growth patterns generate only three million formal jobs annually, thus leaving many young people underemployed and engaged in casual, piecemeal, and unstable work that does not make full use of their skills.
Creating job opportunities for the youth will drive inclusive growth and turn the continent’s demographic wealth into an economic dividend.
The World Bank economist and contributor to the report, Nicholas Woolley, said: “The urgency of the jobs challenge in Sub-Saharan Africa is underscored by the huge opportunity from demographic transitions that we have seen in other regions.
“This will require an ecosystem that facilitates private-sector development and firm growth, as well as skill development that matches business demand.”
