Africa’s growth to slow to 4.1% in 2022

The African Development Bank has projected a slowdown in economic growth for the continent in 2022, citing a variety of exogenous shocks that are dampening the positive trend seen in 2021. Acting Chief Economist and Vice President of the African Development Bank, Kevin Urama, highlighted the impact of geopolitical tensions such as the Russia-Ukraine war, which has led to increased consumer price inflation, rising energy, food, and fertilizer prices, as well as disruptions in supply chains. These external factors are expected to result in a dip in GDP growth to around 4.1% in 2022 and 2023. However, regional disparities exist, with Northern Africa seeing the most robust recovery with GDP growth of 11.7% after a contraction in 2021. In contrast, other regions like Western Africa, Eastern Africa, and Central Africa are projected to experience a slowdown in growth, except for East Africa which exhibited resilience during the pandemic period. The region recorded a 1.5% growth in 2020 and is expected to maintain a stable outlook moving forward, aided by various policy interventions. Southern Africa, on the other hand, suffered the most from COVID-19 with a 6% contraction in GDP growth in 2020 but has since rebounded to a growth rate of 4.4% in 2021, although some moderation is expected in 2022. It is commendable to note the significant recovery witnessed in Southern Africa, underscoring the efforts of leaders in steering their economies towards growth despite challenges. Looking ahead, the report emphasizes the importance of addressing climate change as an existential threat to Africa's development. While the continent has not been a major contributor to global emissions, it ranks as one of the most vulnerable regions to climate impacts. The African Development Bank stresses the need to prioritize climate resilience and energy access as key pillars of sustainable development. With the global focus on reducing carbon emissions, finding a balance between addressing climate change and fostering economic growth is crucial. This has led to the development of concepts such as carbon budget and carbon credit to manage emissions effectively while supporting the continent's development agenda.