Economic growth in Sub-Saharan Africa is stagnating, and a significant portion of the youth population risks being left behind, according to the World Bank. Currently, seven out of ten children in Sub-Saharan Africa lack access to preschool education. The World Bank emphasizes the necessity of stabilizing economies and transforming education to equip the region’s growing workforce with stronger foundational skills and market-relevant expertise.
Growth of private consumption and investment
Despite signs of a fragile economic recovery, economic growth in Africa remains sluggish, putting a large part of the youth at risk of being overlooked. According to the latest analysis from the World Bank, two factors are critical for reviving inclusive growth: stabilizing economies and transforming education to provide the region’s expanding workforce with stronger foundational skills and market-relevant expertise.
The report indicates that economic activity in the region is expected to grow by 3 % in 2024, up from a minimum of 2.4 % in 2023, primarily driven by the growth of private consumption and investment. Inflation is projected to decrease from 7.1 % in 2023 to 4.8 % in 2024, thanks to stricter monetary and fiscal policies, more stable currencies, and reduced supply chain disruptions. However, this recovery is insufficient to lift millions out of poverty. Per capita growth remains low, expected to reach only 0.5 % in 2024 compared to an average of 2.4 % between 2000 and 2014.
Governments strive to address budget deficits
Andrew Dabalen, the World Bank’s Chief Economist for the Africa region, states that African governments are making progress in stabilizing their finances and addressing budget deficits. « But the heavy burden of debt limits investments in crucial areas like education, health, and infrastructure, which are essential for long-term inclusive growth », Dabalen noted.
Challenges such as conflicts, climate change, and rising debt service costs hinder progress. In 2024, 34 % of the region’s public revenue will be allocated to debt servicing, leaving little room for productive investments.
Economic growth stalls due to rising debt
The report also shows that the working-age population in Africa is growing faster than in any other region, thanks to advancements in child survival over the past two decades. Yet, Sub-Saharan Africa spends less on education per capita than any other region.
« This is a significant challenge, but the region has already made substantial progress: 270 million children are now enrolled in primary and secondary schools, and primary completion rates have improved markedly since 2000 », the report states. In the future, young Africans will need to be well-educated and possess the appropriate skills to access better jobs and seize new opportunities in the digital economy. Data-driven planning and smart spending will be essential to expand access while improving learning and employment outcomes.
Supporting entrepreneurship and new startups, enabling small businesses to grow, and attracting larger companies are also crucial for ensuring that qualified graduates find attractive job opportunities as they seek to enter and advance in the job market. Other major concerns, such as the high cost of living, corruption, and, more generally, weak governance, hinder the continent’s development. These factors have sparked protests and palpable anger among youth in Kenya, Nigeria, and Uganda, unrest that could spread throughout the region.
Institutions struggle to promote inclusive and sustainable growth
Discontent and a lack of trust in the government reflect the public’s perception that state institutions are unable to foster inclusive and sustainable growth and reduce structural inequalities. In this context, the region requires further reforms for a functioning economy.
Budgetary policies addressing inequalities are crucial, particularly in establishing a fiscal pact that emphasizes both spending efficiency and equity. Ensuring equal competitive conditions for disadvantaged individuals also entails policies that enhance their productive capacity and create an environment conducive to business creation and growth.
