https://www.cnbcafrica.com/media/6352903607112/afreximbank-on-africas-macroeconomic-outlook
Resilience Amid Global Challenges: African economies are navigating through a storm of global uncertainties, including heightened inflation, rising interest rates, geopolitical tensions, and climate-related disruptions.
Investment Opportunities in Africa: The continent is ripe with opportunities for investment in infrastructure, human capital, and connectivity, all supported by robust macroeconomic policies.
Focus on Intra-African Trade: Intra-African trade is proving to be a crucial engine of growth, with significant potential to enhance economic integration among African nations.
The global economic landscape is fraught with challenges ranging from the aftermath of the pandemic to geopolitical strife and the conflict in Ukraine. These dynamics have impacted the global economy, leading to subdued growth worldwide, as highlighted by Sampawende Jules Tapsoba, Deputy Chief Economist at Afreximbank. Despite these hurdles, African economies are showing resilience and promising growth prospects, surpassing the global average. In a recent interview with CNBC Africa, Tapsoba expressed cautious optimism about the economic future of African nations amidst global uncertainties. He noted that while the world contends with multiple shocks, including COVID-19, geopolitical tensions, and tightening monetary policies, Africa is on a path of growth. Tapsoba projected that African GDP would grow by 3.8% in 2024 and 4.2% in 2025, outperforming the global growth rate.
Key Points:
- Resilience Amid Global Challenges: Despite a turbulent global economic climate marked by high inflation, increased interest rates, geopolitical tensions, and climate change shocks, African economies remain resilient. Tapsoba emphasized the continent’s population of 1.46 billion and a GDP of $3.1 trillion, highlighting Africa’s increasing relevance in the global economic landscape.
- Investment Opportunities in Africa: Tapsoba stressed the importance of recognizing the distinction between external shocks and the internal progress made by African economies. He emphasized the critical role of sound macroeconomic policies and the vast potential for growth in sectors such as infrastructure, human capital, and connectivity. Tapsoba encouraged investors to focus on the dynamic opportunities Africa offers beyond the current challenges.
- Focus on Intra-African Trade: Tapsoba underscored the significance of intra-African trade as a major driver of growth. While acknowledging the slow implementation of the African Continental Free Trade Area (AfCFTA), he highlighted the recent growth in intra-African trade and its potential to foster greater economic integration among African nations.
As Africa addresses the challenges of debt servicing and external vulnerabilities, Tapsoba stressed the need for strategic economic management. He noted that some African nations face substantial external debt burdens, requiring a careful balance between managing debt service and fostering economic growth. Despite these challenges, Tapsoba remains optimistic about Africa’s economic prospects and the opportunities for sustainable growth.
Quote: « Africa is back on the capital market, on the investment side, » Tapsoba stated succinctly. This remark encapsulates the positive outlook for African economies and the growing interest from investors in the continent’s potential for economic advancement.
