The African Development Bank (AfDB) Group has released its flagship African Economic Outlook report.
African Economic Outlook 2022
The report focuses on reassessing the effects of the COVID-19 pandemic, and the war in Ukraine, on African economies, energy transition and climate change in Africa.
Key insights from the African Economic Outlook 2022 report reveal that:
- African GDP growth was 6.9 percent in 2021 (compared to a contraction of 1.6 percent in 2020), owing in part to the opening of economies around the world, higher oil prices, and private consumption.
- GDP growth varies by region, with North Africa growing at a double-digit rate of 11.7 percent in 2021, followed by East Africa at 4.8 percent, and Southern Africa at 4.2 percent.
- The main risks facing the continent are climate change.Africa is the region most affected by climate change such as drought, floods, cyclones, storms, forest fires, and more. Further major risks include a potential new wave of COVID-19 infections, the war in Ukraine and its negative effects on oil, food and fertilizer prices.
- COVID-19 vaccination coverage in Africa totalled 15.3 percent at the end of March 2022. The AfDB believes this level of vaccination coverage is too low. Low levels of vaccine uptake may hamper efforts toward full economic recovery.
- Full economic recovery depends on good public debt management, adoption and implementation of climate change mitigation strategies, significant investments in renewable energy, significant increases in vaccination rates, and provision of financial assistance to low-income households and small and medium-sized enterprises, including domestic pharmaceutical companies.
Economic development in Africa
As the African Economic Outlook 2022 report outlines, there is much to be done to support economic recovery and development across the African continent.
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