ECONOMIC OUTLOOK

‘Modest’ economic growth for SSA region in 2025, IMF report predicts

By our African Marketing Confederation News Team | 2024

Sub-Saharan African countries are navigating a complex economic landscape marked by both progress and persistent vulnerabilities.

Sub-Saharan Africa’s economic growth is projected to remain subdued at 3.6% in 2024, unchanged from 2023, with a modest pickup to 4.2% expected in 2025, according to the latest ‘IMF Regional Economic Outlook for Sub-Saharan Africa’ published on Friday (25 October 2024).

Mombasa port, Kenya. SSA’s economy will grow 4.2% in 2025. Photo: Kenya Ports Authority

The report notes that countries in the region are still grappling with macro-economic imbalances and tight financing conditions amid rising social pressures, leaving policymakers facing difficult choices in implementing reforms. 

 

“Sub-Saharan African countries are navigating a complex economic landscape marked by both progress and persistent vulnerabilities,” said Abebe Aemro Selassie, Director of the IMF’s African Department.  

 

“While many of the region’s countries are among the world’s fastest-growing economies, resource-intensive countries – particularly oil exporters – continue to struggle with lower growth rates. Inflation is declining but remains in double digits in nearly one-third of countries. Public debt has stabilised at a high level, with rising debt service burdens crowding out resources for development spending.” 

 

“While we are seeing some improvement in macro-economic imbalances, growth remains insufficient to significantly reduce poverty or address substantial developmental challenges in the region.” 

 

Economic divergence between resource-rich and non-resource-rich countries 

 

The report also notes critical issues facing the region: the urgent need for job creation, the economic divergence between resource-rich and non-resource-rich countries, and the positive effects of striving for greater gender equality. 

 

Against this backdrop, Selassie highlighted priorities for policymakers in the region. “The policy mix should be consistent with the size of macro-economic imbalances, while taking into account the political economy constraints that will affect the pace of reforms,” he said.  

 

According to Selassie, policymakers must focus on designing reforms that are socially acceptable, including effective communication and consultation strategies and measures to protect the most vulnerable. 

 

“With continued efforts, sub-Saharan Africa can address its current challenges and move towards more sustainable and inclusive growth,” he concluded. “However, the path ahead requires careful policy calibration and a strong commitment to implementing necessary reforms while managing social pressures.” 

 

You can download the full report here.

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    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
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    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.