The African economy has demonstrated resilience in 2024, maintaining steady growth despite the ongoing global challenges of geopolitical tensions, protectionist measures, and rising inflation. This trend highlights the continent’s potential and strength in the face of uncertainty, according to experts and reports from the African Development Bank (AfDB).
The year saw African nations strengthening domestic reforms while fostering international cooperation, particularly with key global partners. These efforts have led to significant advancements in infrastructure, regional integration, and digital innovation, laying a robust foundation for long-term growth.
Strong Growth Projections
The African Economic Outlook 2024 report, published by the AfDB, projects that Africa’s economy will grow by 3.7 percent in 2024, surpassing the global growth rate of 3.2 percent. Looking ahead, Africa’s growth is expected to pick up further, with the continent projected to experience a 4.3 percent growth rate in 2025, making it the second-fastest-growing region worldwide.
East Africa is set to lead the continent’s growth, with its GDP expected to rise from 1.5 percent in 2023 to 4.9 percent in 2024. West Africa is also showing strong growth, with an expected increase from 3.6 percent in 2023 to 4.2 percent in 2024.
The International Monetary Fund (IMF) highlights that countries not dependent on natural resources, such as Rwanda, Cote d’Ivoire, and Kenya, are experiencing some of the strongest growth. Rwanda is set to achieve a 7 percent growth, driven by infrastructure investment and regional cooperation. Cote d’Ivoire, benefiting from strong performance in telecommunications, manufacturing, and agricultural exports, is expected to grow by 6.5 percent. Meanwhile, Kenya’s economy, bolstered by rebounds in agriculture and tourism, is set to grow by 5 percent.
Diversified Growth Focus
The diversification of Africa’s economic growth has become increasingly evident in 2024. Key drivers of this expansion include regional economic integration, technological innovation, and digital transformation.
The African Continental Free Trade Area (AfCFTA) has made significant strides, with nations like South Africa, Ghana, and Cameroon now benefiting from the agreement’s provisions. The AfCFTA is expected to drive intra-African trade up to $520 billion by 2030, from $192.2 billion in 2023.
Africa’s investment in digital infrastructure has also skyrocketed, with Internet users across the continent surging from 181 million in 2014 to nearly 646 million in 2024. Projections show that by 2029, this number could exceed 1.1 billion. This digital expansion is integrating Africa more effectively into the global economy, with mobile payments rising sharply and mobile money accounts in Africa reaching 856 million in 2023.
Ongoing Challenges
Despite the optimistic outlook, Africa faces ongoing challenges that require coordinated action within the continent and through strengthened international partnerships. The IMF has warned that Africa’s economic future is under increasing pressure due to global inflation, rising borrowing costs, and political instability.
Kenyan economist James Shikwati has pointed out that the continent’s lag in infrastructure development continues to hinder progress. Africa remains behind global standards in vital sectors like transport, communication, and energy, which limits trade, investment, and industrialization efforts.
To address these challenges, African nations are increasingly seeking partnerships with emerging economies and regional players. In 2024, Egypt and Ethiopia officially became members of the BRICS group, expanding cooperation and fostering greater investment in infrastructure and technology across the continent.
Looking Ahead
As Africa continues its journey toward greater economic prosperity, the focus on diversification, innovation, and regional integration remains key. While challenges remain, the resilience demonstrated in 2024 shows the continent’s unwavering commitment to building a sustainable future.