Sub-Saharan Africa Poised for Economic Growth: IMF Projects Rising GDP and FDI Surge

October 20, 2024
Sub-Saharan Africa Poised for Economic Growth: IMF Projects Rising GDP and FDI Surge
  • Sub-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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Doing Deals in Sub-Saharan Africa 2024

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