Businesses & Financial News

Sub-Saharan African Growth To Slow In 2022

By Conrad Onyango

The Sub-Saharan African growth is expected to slow in 2022, according to the latest market analysis.

The regional forecast reflects downward revisions to growth forecasts for several major economies, including South Africa, Nigeria, Kenya and Ethiopia, as well as Cote d’Ivoire and Cameroon.

The Russia-Ukraine conflict will weigh on business sentiment, according to new estimates by consultancy firm, Fitch Solutions on Sub-Saharan African Macro Update, which also stated that rising grain and energy prices will have a particularly strong impact in SSA countries where food and transport make up 40-75 percent of the consumer price index.

“We now forecast real GDP growth in SSA of 3.0% in 2022, down from a 3.8% projection at the beginning of the year, and below the pre-pandemic 10-year average. The Russia-Ukraine conflict will weigh on business sentiment,” it noted in its report launched today, Friday.

Economic slowdown, according to the survey drafters will be compounded on weak private consumption and the steep rising inflation on consumer demand.

It also noted that Oil production will contract in 2022 while the rising grain and energy prices will have a particularly strong impact in SSA countries where food and transport make up 40-75 percent of the consumer price index.

So many countries like Zambia, Tanzania, Ghana and even South Africa and Kenya among others particularly vulnerable even though the latter matter registered an impressive growth last year with its economy projected to have growth to 7.5 percent in 2021.

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