African Economies Expect 3.4% Growth in 2021- AfDB

Africa’s economy contracted by 2.1% in 2020 following the COVID-19 pandemic. The African Development Bank (AfDB) has projected a 3.4% recovery in 2021 as most African economies are reshaping for growth and stability.

With most African countries gradually recovering from the hard-hitting effects of the COVID-19 pandemic, a report published by the African Development Bank has said economies on the continent will bounce back by 3.4% this year.

In its African Economic Outlook launched on Friday and themed “From Debt Resolution to Growth: The Road Ahead for Africa” AfDB analysed the effect of the pandemic on the continent’s economy and its potential of getting back soon.

While a 2.1% contraction in GDP was experienced in 2020, the report says the projected recovery will not stop more Africans from being pushed into poverty as a result of the pandemic. Last year, 30 million more Africans slipped into poverty with an increased 39 million expected this year according to AfDB.

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The report said economies with low level of education, inadequate systems and informal economies are expected to experience difficulties more.

Launched by the Vice President and Chief Economist of AfDB, Rabah Arezki, the report stated that African countries must work harder to bounce back with good actionable plans towards reigning their economies.

The report also covers the increasing cost of governance as a result of the pandemic which led to many more African countries seeking increased debts to cushion their budgets.

AfDB President, Akinwunmi Adesina called for a better drive to improve Africa’s finances as he said it’s time to push for Africa’s “one last debt relief”. He called on the international community and private lenders to help African governments reach solutions.

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