What are the implications of the African Development Bank’s (AfDB) 2023 economic outlook for North Africa?

Development Diaries reports that AfDB projected North African countries to see a slight increase in economic growth to 4.6 percent in 2023 and 4.4 percent in 2024.

In the North Africa Economic Outlook 2023, the bank advised North Africa to make green growth an urgent regional priority.

It is understood that growth in the region is essentially driven by the service sector, particularly trade and tourism.

‘To sustain inclusive growth, the region should implement structural reforms that support the development of the private sector, improve productivity and employability, and create job opportunities’, AfDB’s Group Regional Economist for North Africa, Audrey Verdier-Chouchane, said.

The United Nations Economic Commission for Africa (UNECA), in this report, noted that unlike other African subregions, North Africa had limited natural resources.

It said several countries were already under water stress and facing structural deficits in terms of food and energy security, adding that the subregion is one of the world’s areas most vulnerable to climate change.

The AfDB report recommended that North Africa should take full advantage of its significant natural resources while making green growth an urgent priority.

‘North African governments, foreign and domestic private investors, multilateral development banks and development finance institutions, as well as the private sector, should invest in green growth’, the report read.

‘Private-sector financing, in particular, can play a crucial role by investing in green energy infrastructure, energy efficiency, sustainable agriculture and land restoration’.

Development Diaries calls on countries in North Africa to come up with policies that promote a green economy and reduce the impact of climate change.

Photo source: Dennis Jarvis