African Economic Outlook 2023

The theme of the 2023 African Economic Outlook is Mobilizing Private Sector Financing for Climate and Green Growth in Africa.

African economies remain resilient amid multiple shocks

The African Economic Outlook 2023 is being published as African countries are dealing with multiple shocks, including the effects of the COVID-19 pandemic, disruptions to global supply chains due to Russia’s prolonged invasion of Ukraine and a tightening of global financing conditions. These shocks have reduced the continent’s real GDP growth from 4.8 percent in 2021 to 3.8 percent in 2022. However, African economies remain resilient, with average growth projected to stabilize at 4.1 percent in 2023–24.
The growth outlook is subject to significant downside risks, including i) subdued global growth weighing on Africa’s exports, persistence of tight global financial conditions exacerbating debt servicing costs; ii) significant losses and damages due to frequent extreme weather events exacerbating fiscal pressures; iii) the prolongation of Russia’s invasion of Ukraine, which is increasing global uncertainty; and iv) persistent disruptions to global supply chains. Other factors include elevated geopolitical risks due to upcoming national elections in some countries.
The African Economic Outlook 2023 underscores the urgency to fast-track climate action and green transitions to drive the continent’s inclusive and sustainable development.

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2023 African Economic Outlook Chapters Summary video

Despite the confluence of multiple shocks, the African region is projected to grow at the second-fastest rate in the world in 2023-24, demonstrating the resilience of its economies.
The dynamics of Africa’s macroeconomic fundamentals remain mixed and considerable challenges remain.
A mix of short -term and medium- to long-term policies are needed to accelerate and sustain the growth momentum in Africa.

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Africa offers the private sector trillion-dollar investment opportunities in climate and green growth sectors.
Private climate finance flows in Africa (US$4.2 billion over 2019/2020) are six times lower than mobilized public climate finance (US$25.3 billion).
Several transformative policy actions can be leveraged to mobilize more private sector financing for climate and green growth in Africa.

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Africa is a continent of abundant natural resources such as oil and gas, minerals, land, sunshine, wind, and biodiversity, although its actual value is poorly measured and remains largely untapped.
International multilateral agreements such as the Paris Agreement and the Convention on Biological Diversity provide new opportunities for African countries to tap into climate resources and carbon markets as well as those for genetic materials and biodiversity.
Harnessing African’s enormous natural resources requires concrete policies and actions by different stakeholders.

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