Yearender: African economy maintains resilient growth in 2024 amid challenges

by Xinhua writers Xu Jiatong, Bai Ge

NAIROBI, Dec. 31 (Xinhua) -- The African economy has maintained a steady growth in 2024, demonstrating resilience and potential despite global challenges such as geopolitical conflicts and growing protectionism.

Over the past year, African countries have intensified domestic reforms while promoting global cooperation. These efforts have resulted in significant advancements in critical sectors, laying a solid foundation for sustainable progress.

At the same time, China-Africa cooperation has continued to inject fresh momentum into the continent's development, fostering innovation and contributing to long-term growth.

STRONG GROWTH

According to the African Economic Outlook 2024 report by the African Development Bank, Africa's economy is projected to grow by 3.7 percent in 2024, outpacing the anticipated global economic growth rate of 3.2 percent. This upward trend is expected to continue, with growth climbing to 4.3 percent in 2025, positioning Africa as the world's second-fastest-growing region.

The continent's growth momentum remained robust throughout 2024, driven by increased infrastructure investment and strengthened regional cooperation.

East Africa is projected to lead the way as Africa's fastest-growing region, with real gross domestic product (GDP) growth surging from an estimated 1.5 percent in 2023 to an impressive 4.9 percent in 2024. Similarly, West Africa displayed strong dynamism, with growth forecasted to rise from 3.6 percent in 2023 to 4.2 percent in 2024.

Data from the International Monetary Fund (IMF) indicate strong growth momentum across many African countries that don't rely on resources. Fueled by regional integration and infrastructure investments, Rwanda's economy is projected to grow by 7 percent. Cote d'Ivoire, driven by robust growth in telecommunications, manufacturing investments and agricultural exports, is expected to expand by 6.5 percent. Meanwhile, Kenya's growth is forecasted to reach 5 percent, supported by a recovery in agriculture and tourism.

However, resource-dependent countries have registered comparatively sluggish growth. Nigeria, for example, is expected to record a GDP growth of 2.9 percent, hindered by challenges such as low oil production, the IMF said.

DIVERSIFIED DEVELOPMENT

In 2024, the diversification of Africa's economic development has become increasingly prominent.

Regional economic integration, digital transformation, scientific and technological innovation and talent cultivation have emerged as key catalysts propelling the continent's economic growth.

Significant progress has been made in the development of the African Continental Free Trade Area (AfCFTA). The AfCFTA has been launched in countries such as Cameroon, South Africa and Ghana, creating new opportunities for economic growth across the continent.

Al-Mal News, an Egyptian economic daily, reported that intra-African trade is projected to soar from 192.2 billion U.S. dollars in 2023 to 520 billion dollars by 2030, driven by the AfCFTA.

African countries have also significantly ramped up investments in digital infrastructure, fueling a surge in the development of digital economy and e-commerce.

According to the International Telecommunication Union, the number of Internet users in Africa has skyrocketed from 181 million in 2014 to nearly 646 million in 2024, with projections indicating it could surpass 1.1 billion by 2029. This exponential growth is enabling the continent to integrate more effectively into the global economic system.

Thanks to this digital transformation, mobile payments have rapidly increased across Africa. According to a report from the Global System for Mobile Communications Association, in 2023, the number of mobile money accounts in Africa reached 856 million, accounting for 49 percent of registered accounts worldwide.

In addition, African countries are actively driving industrial upgrading and technological innovation through measures such as establishing research funds, developing technology parks, and attracting the return of overseas talent.

ENHANCED COOPERATION

Despite steady growth in 2024, the African economy faces challenges that require concerted efforts both within the continent and through cooperation with the global community in the coming years.

The IMF said that Africa's economic outlook is under increasing pressure from a turbulent global environment characterized by high inflation, rising borrowing costs, climate-induced disasters and political instability.

Kenyan economist James Shikwati has said that infrastructure development remains a bottleneck for Africa's economic progress. The continent lags behind global standards in critical sectors such as transportation, communication and energy, which not only hinders trade and investment but also slows industrialization efforts and regional connectivity.

To address these challenges, African countries are increasingly strengthening ties with BRICS countries and other emerging market economies to diversify partnerships and tap into new opportunities.

In 2024, Egypt and Ethiopia officially became BRICS members, expanding cooperation with China through the mechanism. The Beijing Summit of the Forum on China-Africa Cooperation held in September further strengthened the foundation of China-Africa cooperation.

China has consistently increased its support for Africa's regional connectivity, providing comprehensive empowerment for Africa's development in areas such as infrastructure construction, technology, talent, and markets.

Under the frameworks of the Forum on China-Africa Cooperation and the Belt and Road Initiative, China and Africa have been working together over the past year to advance infrastructure development, with tangible results across the entire African continent. ■