According to a recent World Bank report, Kenya, Côte d’Ivoire, and Rwanda are positioned as some of the fastest-growing African economies in 2023. The report predicts that economic activity in Sub-Saharan Africa is set to rise to 3.7% in 2024 and 4.1% in 2025, indicating a reversal of this year’s economic downturn in the region.
This robust economic performance in Kenya, Côte d’Ivoire, and Rwanda can be attributed to various factors, including sound macroeconomic policies, investments in infrastructure and human capital, and economic diversification. Notably, these nations have been less impacted by the global economic slowdown and the conflict in Ukraine.
In Kenya, despite political tensions and higher living costs, economic growth remains resilient, with a projected 5% increase in economic activity in 2023, up from 4.8% in 2022. This growth is driven by agricultural expansion and increased private consumption, with a focus on managing inflation and fiscal consolidation to ensure macroeconomic stability and support private sector-driven growth.
Côte d’Ivoire, the largest economy in the West African Economic and Monetary Union (WAEMU), experienced a 5.4% year-on-year growth in real GDP in the first quarter of 2023, supported by robust manufacturing activity, particularly in food and plastics, and increased production in electricity, gas, and water.
Rwanda had a strong start to 2023, with a 9.2% year-on-year GDP growth in the first quarter. Private consumption and higher net exports drove this growth, although fiscal consolidation efforts led to a contraction in investment outlays. The services and manufacturing sectors contributed to accelerated growth, while agriculture faced challenges due to adverse weather conditions.
The World Bank’s report paints a positive outlook for the African economy, with growth anticipated to pick up, driven by a global economic recovery, reduced global inflation, and a gradual improvement in global financial conditions. Some countries, including Cabo Verde, Ethiopia, Mauritius, and Uganda, have consistently performed well, while others, such as Benin, Botswana, the Democratic Republic of Congo, Guinea, Kenya, Liberia, Mauritania, Niger, Senegal, and Togo, show signs of economic improvement.
However, several countries are experiencing a decline in growth rates, including Angola, Burkina Faso, Chad, Equatorial Guinea, Ghana, Lesotho, Mali, Malawi, Nigeria, São Tomé and Príncipe, and Zambia. A group of countries is falling behind in their economic performance, including Burundi, the Central African Republic, the Republic of Congo, the Comoros, Gabon, Sudan, and South Africa.
