According to World Bank, 29 out of 33 countries in the
region with available data had inflation of over 5% in July, while 17 were in
double digits. The number of countries in debt distress was little changed,
while borrowing costs rose significantly.
In Ghana, which has sought help from the International
Monetary Fund, amid inflation hitting 33.9% in August and the cedi weakening,
growth is forecast to slow to 3.5% this year, compared to a prediction of 5.5%
in April, News24 reported. The World Bank also cut its growth forecasts for
Nigeria and South Africa from 3.8% and 2.1% to 1.9% and 3.3%, respectively.
Côte d’Ivoire was projected to be West Africa's
fastest-growing economy this year at 5.7%, but Senegal is set to overtake it -
expanding 4.8% this year before speeding up to 8% in 2023 and 10.5% in 2024.
The forecast for Kenya, East Arica's largest economy, was kept the same at 5%.
Here are the top 7 fastest-growing economies in Sub-Saharan
Africa, according to IMF.
1. Senegal
Senegal’s economy is set to expand the most in sub-Saharan
Africa next year, according to the IMF in its World Economic Outlook. The
emerging oil and gas exporter’s output is growing 8.1% in 2023, compared with a
projected 4.7% expansion in 2022, after producing its first gas from the
BP-backed Greater Tortue Ahmeyim field in the third quarter of 2023.
2. Niger
The economic outlook is favourable over the near and medium
term, with growth projected to accelerate from 6.5% in 2022 to 7.2% in 2023,
led by agriculture and supported by the new “3N” agricultural initiative—Les
Nigériens nourrissent les Nigériens—continued public investment in
infrastructure, and increased FDI in the extractive sector. Growth in oil,
which has been negative in the last two years, should reach 20.6% and 86.2% in
2022 and 2023.
3. Rwanda
According to the IMF, Rwanda’s economy will grow at 6.7 in
2023, showing accelerated growth from 6.0 in 2022. Interestingly, all the EAC
countries are projected to post growths higher than the Sub-Saharan African
average of 3.6 per cent, which declined sharply from the 4.7 per cent posted in
2021, according to the IMF.
“We expect real GDP growth to accelerate in 2023. We expect
high base effects and moderating global food and fuel prices will see headline
inflation gradually decelerate to 8.9% by the end of 2023. This will likely
improve consumer confidence, supporting household spending and business
conditions. Moreover, we expect strong tourism growth as the hospitality
sector's ongoing development and a high Covid-19 vaccination rate (as of
October 16, 69.5% of Rwandans had received at least one dose) encourages rising
tourist arrivals”, Fitch Solutions
4. Congo DRC
The economic outlook for the Democratic Republic of Congo is
encouraging despite the Russia–Ukraine conflict, with GDP growth in 2022–23
reaching 6.7%, driven by mining and recovery of nonextractives. According to
AfDB, priority investments should continue to support internal demand.
Improvements to transport and logistical infrastructure are set to support the
resumption of non-extractive activities, services, and industries, stimulating
export and tax revenue. Furthermore, the 2023 elections are forecast to
increase public spending and slightly widen the budget deficit from 1.6% in
2022 to 1.5% in 2023.
5. Côte d’Ivoire
Côte d’Ivoire’s economy remained amongst the few Sub-Saharan
African economies that maintained growth in 2020 despite the Covid-19 pandemic,
and in 2021 GDP growth accelerated to an estimated 6% (IMF).
The Russia–Ukraine conflict could negatively impact the
outlook for 2023. However, the West African nation is expected to benefit from
investments and reforms in the Côte d’Ivoire 2030 Strategic Plan, the National
Development Plan 2021–2025 (NDP), and a more stable sociopolitical environment.
Accordingly, growth should rebound to 6.7% in 2023, driven essentially by
agriculture, industrial activity, buildings and public works, transport,
commerce, telecommunications, investment, and consumption.
6. Benin
Benin has one of the strongest economic growth rates in the
WAEMU area, with an estimated growth rate of +7.2 % in 2021, an increase of
+3.4 percentage points compared to 2020. Despite the exogenous shocks linked to
COVID-19 affecting some key sectors of the Beninese economy, the country has been
able to count on the good performance of sub-sectors such as port activities,
agricultural production, and tourism. According to forecasts, the growth of the
Beninese economy is expected to reach +6.2 %.
7. Togo
After a slowdown in GDP growth to 1.8% during the COVID-19
pandemic in 2020, the country rebounded to 5.3% in 2021, reflecting progress in
the services sector. On the consumption side, household spending and public and
private investment have strongly contributed to the recovery. Public investment
is expected to remain strong in 2022 due to the "Togo Roadmap
2020-2025" implementation, gradually declining in favour of private
investment over the next few years. Business Insiders Africa