Sub-Saharan Africa Poised for Economic Growth: IMF Projects Rising GDP and FDI Surge
October 20, 2024Sub-Saharan Africa (SSA) is a diverse region rich in natural resources and characterized by favorable demographic trends.
Inflation in the region is anticipated to decrease significantly, halving from a peak of 10% in late 2022.
Foreign direct investment (FDI) in SSA is projected to increase to 2.13% of GDP in 2024, up from 1.74% in 2023.
The number of announced FDI projects rose by 10% in 2023 compared to the previous year, indicating a growing interest from investors.
Despite facing challenges such as infrastructure deficits, political instability, and macroeconomic issues, SSA has demonstrated resilience in attracting investment.
Investors are strategically navigating the region, recognizing its strong potential for high risk-adjusted returns.
The publication highlights various investment opportunities, sectors attracting interest, successful strategies, and risk management policies adopted by investors in SSA.
The International Monetary Fund (IMF) forecasts GDP growth in SSA to rise from 3.4% in 2023 to 3.8% in 2024, with expectations for further growth to 4% in 2025.
Public debt ratios in SSA are stabilizing, and countries have resumed issuing debt on international capital markets after a two-year hiatus.
Two-thirds of countries in the region are expecting higher growth, reflecting a positive outlook among investors.
Summary based on 1 source
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Source
KPMG • Oct 18, 2024
Doing Deals in Sub-Saharan Africa 2024