Nigeria’s economy set for 4.1% growth – AfDB

The African Development Bank (AfDB) has projected that Nigeria and other economies in Africa will experience growth rates of 4.1% in 2023 and 4.3% in 2024. Dr. Akinwumi Adesina, the President of AfDB, made this announcement during the inauguration of the African Economic Outlook (AEO) 2023 at the ongoing 2023 AfDB Annual Meetings in Sharm El Sheikh.

Despite facing multiple and dynamic shocks, African economies have demonstrated remarkable resilience. In 2022, the continent experienced a growth rate of 3.8%, down from 4.8% in 2021 but still above the global average of 3.4%. Adesina expressed optimism about Africa’s economic prospects, with a projected rebound to 4% in 2023 and further consolidation to 4.3% in 2024.

Adesina attributed the slowed growth to tightening global financial conditions, supply chain disruptions exacerbated by Russia’s invasion of Ukraine, residual effects of the COVID-19 pandemic, and the growing impact of climate change and extreme weather events. However, he emphasised Africa’s potential for pursuing green growth and climate objectives, given its advantageous position. The continent hosts significant biodiversity and mineral resources, making it an ideal candidate for a green transition. Additionally, Africa’s young population and potential for investments in green infrastructure and technology position it as a frontier market.

According to Prof Kelvin Urama, the AfDB Vice President for Economic Governance and Knowledge, although growth rates in 2022 were lower than in the previous year, Africa outperformed most regions globally. Urama highlighted the resilience of the continent, projecting a rebound to 4% in 2023 and a consolidation at 4.3% in 2024. However, climate change, global inflation, and fragilities in supply chains remain potential factors that could impact Africa’s growth.

The annual meetings of the AfDB, which commenced on May 22 and will conclude on Friday, focus on mobilising private sector financing for climate and green growth in Africa. The meetings provide a platform for Bank Group Governors, representing member countries, to discuss experiences in attracting private financing domestically and internationally, as well as harnessing natural capital to bridge the climate financing gap and promote green growth in Africa. The event attracts participants from government, development agencies, academia, civil society, and the private sector.