Sub-Saharan Africa demonstrates a degree of economic resilience amidst global uncertainties and fiscal constraints, with projected growth of 3.5% in 2025, rising to 4.3% in the subsequent two years. This growth is primarily fueled by increased private consumption and investment as inflation recedes and currencies stabilize. The median inflation rate dropped significantly from 7.1% in 2023 to 4.5% in 2024. However, this growth trajectory remains insufficient to significantly alleviate poverty and fulfill the aspirations of the region’s population, a central theme of the 31st edition of Africa’s Pulse report, which emphasizes improving governance and service delivery. Real income per capita in 2025 is projected to be approximately 2% lower than its peak in 2015, highlighting the need for more robust economic expansion.
The report highlights the uneven growth patterns within the region. Resource-rich countries and those grappling with fragility, conflict, and violence lag behind more diversified economies in terms of growth. Furthermore, the region struggles to generate sufficient quality employment opportunities for its burgeoning youth population. This creates a widening chasm between the aspirations of the population for decent employment and functional public services, and the reality of often suboptimal markets and institutions. The report underscores the urgent need for reforms focused on enhancing competition, transparency, and accountability to attract private investment, bolster public revenue, and generate more economic opportunities for the millions of Africans entering the workforce annually.
Sub-Saharan Africa navigates a landscape of heightened uncertainty stemming from shifting trade dynamics, regional conflicts, and the pervasive effects of climate change on both populations and agriculture. While the full impact of policy changes will unfold gradually, African economies possess the agency to liberalize and diversify their markets. Leveraging the African Continental Free Trade Area (AfCFTA) to stimulate regional trade presents a significant opportunity to expand economic activity and create much-needed jobs for young people.
The report offers a set of policy recommendations for African governments to sustain economic growth and rebuild public trust within this volatile context. In the face of high debt burdens and diminishing global aid, countries can prioritize enhancing the efficiency of government spending to improve access to fundamental services such as healthcare, education, water, and electricity. This strategic approach has the potential to strengthen the relationship between governments and taxpayers by demonstrating tangible benefits from public expenditure.
Beyond improving public services, the report advocates for a fair and efficient tax system, strengthened accountability mechanisms, and clear market regulations. These measures are crucial for fostering a conducive business environment where companies can compete effectively, expand their operations, and contribute to job creation. By creating a level playing field and promoting transparency, governments can attract greater private investment, stimulate economic growth, and ultimately improve the living standards of their citizens.
The call for improved governance and service delivery resonates throughout the report, emphasizing the importance of bridging the gap between people’s aspirations and the current realities on the ground. Addressing the challenges of unemployment, poverty, and inequality requires a multi-pronged approach that encompasses economic diversification, enhanced public service delivery, and a commitment to transparency and accountability in both the public and private sectors. By implementing these recommendations, African countries can unlock their full economic potential and create a brighter future for their citizens.
