World Bank Warns Of Potential Lost Decade For Sub-Saharan Africa Amid Growing Instability

Washington, D.C– The World Bank has released its latest growth forecasts for sub-Saharan Africa, expressing grave concerns about the region’s future prospects. The financial institution warns of the possibility of a “lost decade” for the continent, largely attributed to escalating instability and various economic challenges.

For the current year, the World Bank projects sub-Saharan Africa’s growth to reach a modest 2.5%, a significant decline from the 3.6% recorded in the previous year. This slowdown can be attributed, in part, to a deceleration in the region’s major economies.

Nigeria, the largest economy in Africa, is expected to post a growth rate of 2.9%, while Angola is projected to achieve a meagre 1.3% growth, and South Africa, the continent’s second-largest economy, is estimated to grow at just 0.5%.

Of particular concern is the stagnant GDP per capita, which has not shown any substantial growth since 2015. The World Bank warns that the annual growth rate in this indicator could be a mere 0.1% from 2015 to 2025.

The institution identifies various factors contributing to this slowdown, including political instability, fragility, and an increase in conflict and violence in some nations. Sudan, for instance, is expected to experience a severe economic contraction of 12% in the face of a protracted conflict.

Adding to the region’s woes is the issue of public debt, with over twenty countries in sub-Saharan Africa deemed to be at high risk of over-indebtedness.

Despite the grim economic outlook, there are some glimmers of hope. Inflation in the region is expected to be less pronounced this year compared to 2022, with a rate of 7.3% versus the previous year’s 9.3%.

Furthermore, certain areas within sub-Saharan Africa are experiencing more favourable economic conditions. The Economic Community of West African States (ECOWAS) is projected to achieve a cumulative growth of 5.1%, while the East African Community anticipates a 4.9% expansion.

The World Bank’s assessment shows the urgent need for regional leaders and the international community to address the root causes of instability and economic challenges facing sub-Saharan Africa.