Africa's Pulse: An Analysis of Issues Shaping Africa's Economic Future - Improving Governance and Delivering for People in Africa

"Establishing the necessary conditions for economic activity, independent institutions such as regulatory agencies and courts are critical to establishing confidence in markets, reducing a community’s vulnerability to the excess volatility of global financial activity. From a macroeconomic standpoint, creating an environment that delivers price stability, fiscal sustainability, financial stability, and, more broadly, shock resilience is critical. Fostering trust in the government’s ability to implement these policies effectively will require independence from the electoral cycle, a clear mandate, and a premium on transparency and accountability."

The World Bank Group has released this interesting publication on improving Governance and Delivering for People in Africa. The document explores recent developments and outlook, improving how government deliver for people, and makes policy recommendations. It is interesting to note that the World Bank report indicates that - "High-frequency indicators point to activity in manufacturing and services improving across countries in the region at the start of 2025. Business sentiment continues to expand in some countries (Kenya, Nigeria, and Zambia), while in others it has bounced back from contraction (Ghana and Mozambique) or remains subdued (South Africa and Uganda). Economic activity across the subcontinent remains volatile, but signs of conducive conditions for business expansions are emerging."

The abstract below provides incites into the content of the document.

Abstract

Amid global economic uncertainty and limited fiscal space in the region, Sub-Saharan Africa's economic activity is showing some resilience, with projected growth gradually increasing over 2025-2027 period. This growth is driven primarily by a rise in private demand, alongside a reduction in inflation rates and stable currencies. However, growth has been unable to reduce poverty and meet people's aspirations. The region is also grappling with persistent challenges, including political unrest and escalating demands for adequate economic opportunities, as reflected in a surge in protests over the past decade and a notable rise in coups since 2000. These dynamics highlight the urgent need for a renewed social contract between governments and citizens, emphasizing efficient public spending, better governance, and transparent market regulations to foster job creation and sustainable economic growth. African governments must prioritize governance reforms to maintain growth momentum and restore public trust. The report underscores the importance of strategic investments and complementary policies that bolster human capital, improve public services, and create a fair tax system, thereby fostering a business environment that supports growth and job creation.

To access the report, follow the link below -

Citation

“World Bank. 2025. Africa's Pulse, No. 31, Spring 2025: Improving Governance and Delivering for People in Africa. © World Bank. http://hdl.handle.net/10986/42886 License: CC BY 3.0 IGO.”

URI

https://hdl.handle.net/10986/42886