Economic growth in Sub-Saharan Africa (SSA) is projected to decline to 3.7 percent in 2022 as against 4.2 percent recorded in 2021.
This is according to the World Bank’s latest Global Economic Prospect Regional Outlook on Sub-Saharan Africa Report.
Growth in the region weakened this year as domestic price pressure, partly induced by supply disruptions owing to the war in Ukraine, set in.
The World Bank report showed that growth in the three largest SSA economies, Nigeria, South Africa, and Angola was an estimated 3.8 percent in 2021 supported by the 4.9 percent rebound in South Africa.
“Growth momentum carried on in Angola and Nigeria, where high oil prices, the stabilisation of oil production, and recovery in non-resource sectors supported activity in the first half of this year.
“Nevertheless, persistently high domestic inflation, power cuts, and shortages of food and fuel have been weighing on recoveries,” The report noted.
Debt distress, policy uncertainty, social unrest, and violence still hampered recoveries in some countries.
An example is Nigeria which is projected to spend 100 percent of revenue on debt servicing by 2026 if the government fails to improve revenue.
The country is also battling organised violence across its six geo-political zones, the latest being the killing of about 40 worshippers at a church service in Ondo State last Sunday.
The report said a prolonged disruption to global trade in cereals and fertilizer due to the war in Ukraine would significantly worsen the affordability and availability of staple foods across SSA.
