Kinshasa, April 8th2023 (CPA) – The Democratic Republic of Congo is facing multiple crises with a growth rate of 8.6% in 2022, making it the most prolific country in Central Africa in terms of economic growth rate.
« Countries such as Kenya, Ivory Coast and the Democratic Republic of Congo (DRC) are showing resilience in the face of multiple crises, with respective growth rates of 5.2%, 6.7% and 8.6% in 2022, » the World Bank overcame in a report received on Friday by CPA.
However, investment growth in sub-Saharan Africa has fallen from 6.8% in 2010-2013 to 1.6% in 2021, with a sharper slowdown in Eastern and Southern Africa than in Western and Central Africa.
Indeed, the World Bank notes that « economic growth in sub-Saharan Africa is expected to slow from 3.6% in 2022 to 3.1% in 2023 ».
It goes on to explain that the causes of this slowdown are, among others, the current global situation caused by the war in Europe (Russia-Ukraine) and the crises that it engenders.
« Growth remains sluggish, dragged down by uncertainty in the global economy, the underperformance of the continent’s largest economies, high inflation, and a sharp deceleration in investment growth, » the document adds.
Furthermore, the World Bank projects that « real gross domestic product (GDP) growth in the West and Central Africa sub-region is estimated to fall to 3.4% in 2023 from 3.7% in 2022, while that of Eastern and Southern Africa is projected to fall to 3.0% in 2023 from 3.5% in 2022.
Debt risks remain high, with 22 countries in the region at high risk of external debt distress or in debt distress in December 2022, » she said.
It went on to suggest that although headline inflation appears to have peaked last year, inflation is expected to remain high at 7.5% in 2023.
The international financial institution made some recommendations to African governments to face these challenges in 2023.
« Faced with dimming growth prospects and rising debt levels, African governments need to focus more on macroeconomic stability, domestic revenue mobilisation, debt reduction and productive investments to reduce extreme poverty and boost shared prosperity over the medium to long term, » it recommended.