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The African Export-Import Bank has forecast(ed) that the African economy will experience an average growth of 3.8 per cent this year.
This information was revealed in the Economic Outlook Report 2024, which was launched during the Afreximbank annual meeting in Nassau.
This projection is in line with the International Monetary Fund’s expected growth for sub-Saharan Africa.
The report stated that there would be a rise in growth from 3.4 per cent in 2023 to 3.8 per cent in 2024, with the majority of countries expecting higher growth.
It also anticipated that economic recovery would continue beyond this year, with growth projections reaching 4.0 per cent in 2025.
During the annual meeting, the report titled ‘A Resilient Africa: Delivering Growth in a Turbulent World’ projected that African economies would grow by an average of 3.8 per cent in 2024, slightly surpassing the anticipated global growth of 3.2 per cent, before increasing to 4 per cent in 2025.
The Afreximbank’s Group Chief Economist and Managing Director of Research and International Cooperation, Dr Yemi Kale, mentioned that certain global challenges had negatively impacted Africa’s trade performance, which contracted by 6.3 per cent in 2023 after expanding by 15.9 per cent in 2022.
He also noted that intra-African trade had expanded by 3.2 per cent over the same period.
Kale stated, "The current results demonstrate the strength of the African economy and the potential influence of the African Continental Free Trade Area's unified market in shielding the continent from worldwide disruptions."
During the annual meeting, the African Trade Report 2024, also known as 'Climate Implications of the AfCFTA Implementation', was presented as the second report.
Kale emphasized that the AfCFTA could help African nations achieve their developmental goals while also addressing climate change concerns.
He explained that there were two opposing beliefs regarding the impact of AfCFTA on carbon emissions.
One group believes that urbanization and industrialization linked to AfCFTA will increase carbon emissions, while the other group believes that prioritizing intra-African trade and reducing extra-African trade will lead to shorter shipping distances and ultimately reduce carbon emissions.
On the first day of the meeting and third AfriCaribbean Trade and Investment Forum, Babajide Sanwo-Olu, the Governor of Lagos State, highlighted the significance of AfCFTA.
He emphasized the need for collaboration between national and subnational levels for the initiative to succeed, stating that despite challenges, AfCFTA aimed to create a unified trade channel for African countries.
He also expressed his ambition for Lagos to become a strong link between Africa and the Caribbean, building on historical connections and modernizing them into a powerful global partnership.
He praised Afreximbank for their role as a facilitator in bridging Africa and the Caribbean and expressed his commitment to driving progress and innovation for the benefit of all Africans.
