Central Africa has experienced a growth rate higher than the African average, according to findings from the African Development Bank’s (AfDB) Central African Economic Outlook 2023 report.
Development Diaries reports that the region achieved real GDP growth of 5.0 percent in 2022, compared with 3.4 percent in 2021.
It is understood that the rebound in economic activity in the region was driven by favourable prices for raw materials in a region that is home to net exporters of crude oil, minerals and other commodities.
The report also noted Central Africa had an inflation rate of 6.7 percent in 2022, compared with 3.9 percent in 2021, which was the best performance of any African region.
‘Overall, the economic outlook for the Central Africa region is positive for 2023 and 2024’, Lead Regional Economist for Central Africa, Hervé Lohoues, said.
‘This performance is the result of the structural reforms implemented to support the non-extractive sectors, and the increase in external demand and the prices of the main products exported by the various countries in the region’.
The report recommended that Central African countries commit to implementing innovative funding mechanisms to attract private-sector financing.
The AfDB report also noted that Central Africa needs around $128 billion between 2020 and 2030 to implement adaptation and mitigation measures and tackle the effects of climate change, or around $11.6 billion per year.
Development Diaries calls on Central African countries to commit to measures to respond to the climate action needs.
Photo source: United Nations
