Login

Lost your password?

Sign Up

Register

Login

Login

Lost your password?

Register

Wednesday, May 25, 2022
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion

Africa's
Investment
Gateway

The Exchange
  • Login
  • Register
Subscribe
This Month's Edition
Previous Editions
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
LOGIN
www.theexchange.africa

Women shopping at a market in Senegal. Photo: Unsplash.

War in Ukraine to slow down Sub-Saharan Africa’s economic growth – World Bank

Other shocks include new COVID-19 variants, global inflation, supply disruptions and climate change

by Wanjiku Njugunah
April 20, 2022
in Business
0
Share on FacebookShare on LinkedIn
  • Sub-saharan Africa now faces new economic growth challenges, compounded by the Russian invasion of Ukraine
  • A World Bank report estimates growth at 3.6 per cent in 2022, down from 4 per cent in 2021 as the region continues to deal with new COVID-19 variants, global inflation, supply disruptions and climate shocks
  • Resource-rich countries, especially their extractive sectors, will see improved economic performance due to the war in Ukraine, while non-resource-rich countries will experience a deceleration in economic activity

As the Sub-Saharan African economy struggles to recover from the 2020 recession induced by the COVID-19 (coronavirus) pandemic, the region now faces new economic growth challenges, compounded by the Russian invasion of Ukraine.

The World Bank’s latest Africa’s Pulse, a biannual analysis of the near-term regional macroeconomic outlook, estimates growth at 3.6 per cent in 2022, down from 4 per cent in 2021 as the region continues to deal with new COVID-19 variants, global inflation, supply disruptions and climate shocks.

Adding to the region’s growth challenges are rising global commodity prices, which are increasing at a faster pace since the onset of the conflict between Russia and Ukraine.

As top world exporters of food staples, Russia—the world’s largest exporter of fertilisers—and Ukraine account for a substantial share of wheat, corn and seed oil imports, all of which may be halted if the conflict persists.

While Sub-Saharan economies are also likely to be impacted by the tightening of global conditions and reduced foreign financial flows into the region, the analysis notes that the high fuel and food prices will translate into higher inflation across African countries, hurting poor and vulnerable citizens, especially those living in urban areas.

One point of concern is the increased likelihood of civil strife because of food and energy-fuelled inflation, particularly in this current environment of heightened political instability.

“As African countries face continued uncertainty, supply disruptions and soaring food and fertiliser prices, trade policy can potentially play a key role by ensuring the free flow of food across borders throughout the region. Amid limited fiscal space, policymakers must look to innovative solutions such as reducing or waiving import duties on staple foods temporarily to provide relief to their citizens,” said Albert Zeufack, World Bank Chief Economist for Africa.

Ukraine invasion a clarion call for Africa

The analysis notes that recovery remains uneven, incomplete and is happening at varied rates of speed across the region.

Of the region’s three largest economies—Angola, Nigeria, and South Africa—growth in South Africa is expected to decline by 2.8 percentage points in 2022, dragged by persistent structural constraints. Angola and Nigeria are expected to continue their growth momentum in 2022, up by 2.7 and 0.2 percentage points respectively, in part due to elevated oil prices and good performance in the non-oil sector.

Ukraine war Africa economic growth
Import Dependence on the Russian Federation and Ukraine across Countries in Sub-Saharan Africa, 2019-20
(% of total imports). Photo: World Bank.

Resource-rich countries, especially their extractive sectors, will see improved economic performance due to the war in Ukraine, while non-resource-rich countries will experience a deceleration in economic activity.

Excluding Angola, Nigeria and South Africa, regional growth is projected at 4.1 in 2022, and 4.9 per cent in 2023.

The Eastern and Southern Africa subregion shows sustained recovery from the recession, at 4.1 per cent in 2021, down to 3.1 per cent in 2022 and settle around 3.8 per cent in 2024.

The DRC and Zambia are expected to benefit from rising metal prices in the short and medium-term and gain from the transition away from fossil fuels in the long term. Rwanda and Seychelles are expected to register the biggest decline in 2022, down by 4.1 per cent, and 3.3 per cent respectively.

The Western and Central Africa subregion is projected to grow 4.2 per cent in 2022 and 4.6 per cent in 2023. Excluding Nigeria, the subregion is projected to grow at 4.8 per cent in 2022, and 5.6 per cent in 2023.

The growth trajectory for Cameroon, which has a somewhat diversified economy, shows sustained robust performance, reaching 4.4 per cent in 2024.

Zimbabwe: An unlikely victim of the Russia-Ukraine crisis

The Ghanaian economy is projected to pick up pace in 2022, growing by 5.5 per cent, then slowing gradually to 5 per cent in 2024, lower than the 7 per cent pre-pandemic growth.

The report also highlights the importance of expanding social protection programs beyond safety nets to strengthen economic resilience and responsiveness to shocks, particularly for poor and vulnerable households. Recommendations include developing social insurance, savings and labour market programs that contribute to economic resilience by protecting urban informal workers and helping the population invest in their health and education.

Africa refuses to be a pawn in US-Russia tensions

Tags: FeaturedSub-Saharan AfricaWar in UkraineWorld Bank

STATE OF ECONOMY - GET THE REPORT

ASSESSING EAST AFRICA

Loading...

Wanjiku Njugunah

Wanjiku Njuguna is a Kenyan-based business reporter with experience of more than eight years.

Related Posts

Congo joins the EAC (www.theexchange.africa)
Business

What does it mean for regional trade, investment after DRC became EAC’s 7th Member State?

May 18, 2022
www.theexchange.africa
Business

Technology: Liquid Intelligent acquires Israeli tech firm to expand its digital solutions offering

May 9, 2022
www.theexchange.africa
Business

Kenya: President Kenyatta Increases Minimum Wage by 12 Per Cent

May 2, 2022
Next Post
Tanzania President Samia Suluhu (R) and US Vice President Kamala Harris. Uber has closed down its Tanzania operations even as Suluhu and Harris are meeting tomorrow. www.theexchange.africa

Suluhu in America: No solution as Uber Tanzania closes

Africa: Explosive meat alternative industry fights climate change and chronic diseases. www.theexchange.africa

Lab-grown meat: Is Africa ready for this alternative?

Foreign Investment Deceit: Africa Start-ups Need Protection. www.theexchange.africa

Foreign Investment Deceit: Africa Start-ups need protection

Please login to join discussion




This months edition

May Edition

Features

EdTech role in African development
Tech & Business

EdTech’s role in African development

by Kanyali Muthui
May 16, 2022
0

Due to the pandemic, the topic of innovation in education has never been more crucial.  While most developed countries moved...

Read more
investment in African science and technology
Tech & Business

Investing in Africa’s science and technology: Where are we now?

by Kanyali Muthui
May 16, 2022
0

The continent’s digital revolution can largely be driven by building the necessary skills for the short- and long-term future, and...

Read more
Fintech revolution in Africa
Tech & Business

The Fintech Revolution in Africa’s FX Markets

by Kanyali Muthui
May 11, 2022
0

With over 548 million registered mobile money users in sub-Saharan Africa, increased internet access and readily available mobile money solutions,...

Read more
www.theexchange.africa
Countries

US – Nigeria Trade Relations: An Overview

by Wanjiku Njugunah
May 2, 2022
0

Nigeria is currently the United States' 54th largest goods trading partner, with US$7.8 billion in total goods trade as of...

Read more
A previous conference for African Insurtech sector. The Insurtech boom is deepening insurance uptake in Africa. www.theexchange.africa
Tech & Business

Insurtech boom deepening the uptake of insurance in Africa

by june njoroge
May 2, 2022
0

Kenya-based Pula is another distinguished insurtech making waves in the continent. It provides small scale farmers with agricultural insurance and...

Read more

News

Banking
Industry & Trade
Investing
Money Deals
Regional Markets
Tech & Biz
Opinion

Countries

Kenya
Tanzania
Uganda
Burundi
Rwanda
Southern Africa
Ethiopia

More

My Account
Contact us
Advertise
About us
Help Center

Subscribers Center

E-paper
Premium Stories
Education Rates
Corporate Subscriptions
Weekely Newsletter

  • My account
  • About us
  • Advertise
  • Contact
  • Privacy Policy
  • Refund Policy – The Exchange
  • Sitemap

No Result
View All Result
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
  • Login
  • Sign Up
  • Cart

© 2021 The Exchange - Powered by MediapixManaged by Supported by Digihandler,

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In