Sub-Saharan Africa’s economy is rebounding steadily, with GDP growth projected to reach 3.5% in 2025 and 4.3% by 2027, according to the World Bank’s latest Africa’s Pulse report released this week. The improved outlook is driven by rising private consumption, stronger investment flows, and declining inflation, which has dropped from 7.1% in 2023 to 4.5% in 2024.
Additionally, exchange rate volatility has eased, providing a more stable macroeconomic environment in several key economies across the region, such as Kenya, Côte d’Ivoire, and Senegal, which have implemented tighter monetary policies and fiscal reforms.
Despite the positive momentum, the World Bank cautions that sub-Saharan Africa remains vulnerable as real income per capita in 2025 is projected to stay 2% below 2015 levels, reflecting persistent inequality and sluggish income growth, Poverty rates remain steadily high, with limited progress in reducing extreme poverty, particularly in conflict-affected states like South Sudan, Burkina Faso, and the Democratic Republic of Congo whereas youth unemployment remains a significant hurdle, with job creation falling far short of absorbing the region’s fast-growing labor force.
The report highlights that resource-dependent countries, such as Nigeria and Angola, are growing more slowly than economically diversified nations, underscoring the need for structural transformation.
To sustain growth and broaden its benefits, the World Bank is calling for urgent governance and business climate reforms, expanded access to education, health, and digital infrastructure, and full implementation of the African Continental Free Trade Area (AfCFTA) to drive intra-African trade, industrialization, and job creation.
“Unlocking the region’s full economic potential will depend on accelerating reforms that promote inclusive growth and deepen regional integration,” the report states. While challenges remain, the World Bank notes that renewed investor confidence, macroeconomic stabilization, and ongoing regional trade initiatives offer a solid foundation for long-term resilience and shared prosperity.
