The International Monetary Fund (IMF) has released its economic report for Sub-Saharan Africa, pointing out that countries that produce oil are growing more slowly and unevenly. These oil-producing countries are growing at about half the speed of the rest of the region, with Nigeria expected to grow by only 2.9%. On the other hand, countries with more varied economies, like Senegal and Tanzania, are expected to grow faster than the average for the region.
The IMF urged that oil-exporting countries should change their economies to help fix the uneven growth across the region. This idea is supported by Abebe Aemro Selassie, the IMF’s Africa Director, who says Nigeria’s government needs to deal with important economic problems that are causing high inflation and higher living costs.
The economy of Sub-Saharan Africa is expected to grow by 3.6% this year, which is the same as last year, but slightly less than the 3.8% that was predicted in April. Economies that depend on commodities are still growing more slowly than those with more varied economies.
President Tinubu’s administration has made big changes in the energy, power, and foreign exchange areas to save money for important projects. But, many people in Nigeria are struggling with high prices, which is making it hard for poor people to get by. The government’s plan to give money to those in need is moving slowly because of problems with checking people’s information online.
Looking ahead, the economy of countries south of the Sahara Desert is expected to grow by 4.2% in 2025. If Nigeria and South Africa are not included, the growth in the rest of the region would be much faster.
