World Bank – Africa Pulse October, 2023

The World Bank's Africa Pulse report for October 2023 highlights the challenges and risks facing Sub-Saharan Africa's economic growth. It predicts that economic growth in the region will slow to 2.5% in 2023, down from 3.6% in 2022, and per capita growth has not increased since 2015, indicating a lost decade of growth. The report attributes this slow growth to the ongoing slump of the region's large economies, such as South Africa, Nigeria, and Angola, due to factors like energy and transportation bottlenecks, lower international prices, and currency pressures affecting oil and non-oil activity. The report also mentions the increased incidence of attempts to destabilize governments through unconstitutional or violent means in recent years, which has led to conflicts, violence, and social unrest. Additionally, the region is facing high levels of debt distress, with 55% of International Development Association-eligible countries in the region at high risk or already in debt distress. In terms of job creation and poverty reduction, the report states that Sub-Saharan Africa's growth over the past two decades has not contributed to a significant increase in jobs or poverty reduction. It highlights the urgent need for job creation in the region, as only one in six workers has a wage job. The lack of capital, low labor productivity, lack of firm growth, and constrained markets are identified as key barriers to job creation. The report suggests several policy responses for achieving inclusive growth, including fiscal stabilization and debt reduction through improving tax revenues and debt management. It also emphasizes the need for political stability, a stronger institutional framework, and demand-driven skills development to support market growth. Finally, the report emphasizes the importance of creating an ecosystem that facilitates firm entry, stability, and growth to drive job creation and improve the quality of jobs in the region.