Can SSA economies achieve 4% GDP growth in 2024?

Addressing inflation and economic headwinds have remained key priorities for economies in Sub-Saharan Africa. The region continues to face challenges, with inflation and currency instability dominating the economic landscape. Toyin Sanni, Founder and Executive Vice Chairman of Emerging Africa Group, shared insights on the outlook for Sub-Saharan Africa in a recent interview with CNBC Africa. Sanni highlighted both the positive and negative aspects of the current economic situation in the region. She mentioned that while the World Bank and IMF expect growth in Africa in 2024, concerns about inflation persist. Nigeria and other West African economies are under significant pressure, with inflation rates skyrocketing. In Nigeria, inflation has reached 34.19%, driven primarily by food inflation at 40.8%. However, Ghana has shown progress in reducing inflation to 24%, a significant improvement from the previous year. Sanni emphasized the importance of implementing both monetary and fiscal policies to combat inflation effectively. She also mentioned positive economic growth in Cote d'Ivoire, with a 6.7% GDP growth in the first quarter of the year. Despite some bright spots, Nigeria faces challenges including high inflation, currency depreciation, and interest rates impacting the real sector's performance. The tightening monetary policies have led to high interest rates, affecting investment activities in the country. Sanni expressed caution about the investment outlook in Nigeria, noting the need for effective communication to restore confidence in the economy. She highlighted the ongoing reforms and the banking sector recapitalization as opportunities for investors. Sanni pointed out that the banking sector in Nigeria has historically performed well, attracting both domestic and international investors. She encouraged investors to consider the long-term potential of the Nigerian market amidst the current challenges. Despite the uncertainties, Sanni remained cautiously optimistic about Nigeria's economic prospects. She stressed the importance of managing reforms effectively to rebuild trust and attract investments. The interview concluded with a discussion on the impact of macroeconomic instability on investment confidence and the opportunities presented by Nigeria's reform story. Sanni's insights shed light on the complexities of navigating economic headwinds in Sub-Saharan Africa and the potential for growth amidst challenges.