Economic recovery in Sub-Saharan Africa expected to be varied throughout 2022 - Survey by Reuters suggests
Growing economies across sub-Saharan Africa will experience a mixed recovery in 2022, as they slowly bounce back from the COVID-19 pandemic's disastrous impact. These fluctuations, indicated in a recent Reuters poll, are primarily influenced by low vaccination rates and the region's persistent structural challenges.
Despite these obstacles, the path to recovery appears more promising than in the past few years. Nigeria, Africa's largest economy, is estimated to grow by 2.7% in 2022 compared to 2.5% this year, and Kenya is projected to expand by 5.3% in 2022, compared to 5.1% currently. Ghana, South Africa, and Zambia, however, may experience slower growth.**
Unfortunately, Africa still lags significantly behind in vaccination rates, with only around 8.4% of the population having received at least one dose as of 2022. This stark contrast with the global average of 48.7% raises concerns about the recurrence of outbreaks, labor availability, and further economic disruptions.
Returning to growth is essential, as many economies in sub-Saharan Africa face a melange of interconnected issues, including low productivity, reliance on a narrow range of commodities, and investment stagnation. To tackle these challenges, countries need to focus on improving productivity, diversification, and attracting investment while addressing structural issues and fostering entrepreneurship.
Beyond economic factors, health capacity, fiscal responsibility, infrastructure development, financial and institutional development, trade, and regional integration all play critical roles in fostering sustainable growth in the region.
- The growth projections for Nigeria and Kenya in 2022, despite their slower growth in some countries like Ghana, South Africa, and Zambia, indicate a more promising business environment in sub-Saharan Africa, which is crucial for the region's recovery.
- To sustain this growth, it's essential for economies in sub-Saharan Africa to focus on improving productivity, diversification, and attracting investment, while also addressing structural issues and fostering entrepreneurship.
- The region's slow progress in vaccination rates remains a significant concern, as low vaccination levels may lead to the recurrence of outbreaks, affecting labor availability, business operations, and the overall health of the economy.
