Africa is projected to grow on average by 3.8 per cent in 2024, the African Export-Import Bank (Afreximbank) has said in its latest report..
The report ‘Afreximbank’s African Trade and Economic Outlook Report 2024’ released on Friday, stated, however, that the continent’s economies face several downside risks, including increasing levels of sovereign debt, excessive exposure to adverse terms-of-trade shocks, high commodity prices and inflationary pressures, potential
food insecurity, volatile domestic political environments and escalating geopolitical tensions among others.
The report noted that although inflation is currently high, it is expected to decrease, with this downward trend continuing into 2025.
Afreximbank’s Group Chief Economist, Yemi Kale, said the continent showed resilience to ongoing global challenges that undermined its trade performance.
The chief economist said Africa’s trade contracted by 6.3 per cent in 2023 after expanding by 15.9 per cent in 2022, while Intra-African trade expanded by 3.2 per cent over the same period.
“This performance is reflective of the resilience of the African economy and the potential impact of the African Continental Free Trade Area or AfCFTA’s single market for the continent as a tool to protect them from global shocks,” Kale said:
The analysis is also backed by the African Trade Report 2024, launched by Afreximbank under the title: ‘Climate Implications of the AfCFTA Implementation.’
This report, the Chief Economist stated, concludes that the AfCFTA offers a path to achieving the developmental goals of African nations, while also addressing climate change concerns.
“Our analysis in the report also revealed large untapped potential in intra-African trade, especially with respect to machinery, electricity, motor vehicles and food products,” the Chief Economist added.
Overall, the report states that optimizing the AfCFTA can result in potential gains through increased intra-African trade and investment.
MG/GIK/APA