African countries will scrimp on investment in the coming year

By Kinley Salmon

Sub-Saharan Africa’s growth prospects for the coming year are modest. The region’s gdp expanded by 4% in 2022 and 3.3% in 2023, and the IMF reckons on 4% in 2024. Alongside population growth of about 2.6%, that is not a combination for widespread prosperity. Worse, the region may not surpass these modest rates any time soon.

Most African economies lack what they need for transformational economic growth: a well-educated workforce, reliable roads and electricity, and well-resourced, clean government. When starting from a low base—and with access to enough finance—poor countries can spark stellar economic growth through big improvements in electricity, roads and literacy. But when finance is tight, and few of the drivers of growth are in place, they can undershoot their potential for long periods. That may well be the fate of many African countries in the coming years.