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Overview

Sub-Saharan Africa (SSA) is an extremely diverse region, composed of low, lower-middle, upper-middle, and high-income countries ¨C 20 of which are fragile or conflict-affected ¨C and 13 small states characterized by a small population, limited human capital, and a confined land area. Boasting rich natural resources and the world¡¯s largest free trade area and a 1.2-billion-person market, the continent has the potential to forge a new development path, harnessing the potential of its resources and people.

According to the region¡¯s most recent economic update, growth in Sub-Saharan Africa is projected to edge up from 3.3 percent in 2024 to 3.5 percent in 2025 and further accelerate to 4.3 percent in 2026¨C27. Increased incidence and severity of conflict and violence across the region occurred in 2024 and the start of 2025 and has led to acute food insecurity and increases in food emergencies.  

Recent estimations suggest that around 120 million Africans face acute food insecurity, of which 80 percent live in countries experiencing conflict. This situation will be compounded by reduced official development assistance for emergency response.

About 464 million people in the region are still living in extreme poverty in 2024. The region continues to grapple with high debt distress risks, with 53% of IDA-eligible countries in the region at high risk or already in debt distress.

The per capita growth acceleration expected in 2025¨C27, at an annual average rate of 1.8 percent, will contribute to a modest decline in the poverty rate. Forecasts indicate that after reaching a peak of 43.9 percent in 2025, poverty, measured at $2.15 per capita per day in 2017 international purchasing power parity, will drop to 43.2 percent in 2027. Limited investments in income-generating sectors for the poor, lingering effects of past inflation, and the probable reduction of donor aid budgets worldwide pose a challenge for poverty reduction.

Africa can also pave the way to inclusive growth by investing in its human potential. Over the next three decades, the region will experience the fastest increase in the working age population of all regions, with a projected net increase of 740 million people by 2050. Up to 12 million youth will enter the labor market across the region every year in the coming decades, yet only about 3 million new formal wage jobs are currently created each year. As the economies in the region recover at a faster pace in the years to come, policy should be geared toward sharing the growth benefits more equally across the population by investing in human capital, fostering economic diversification, and fostering jobs-friendly economic growth.

Last Updated: Apr 23, 2025

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