Crystal Orderson shared some of her insights on the continent and the emerging economies. Overall, bar a few challenges, the outlook is positive for Africa with projected growth for 2024 driving sustainable development across the region.

“The African continent is the second fastest growth in the region and stronger growth than 2023 has predicted.”

Africa’s growth forecast

The African Development Bank released a revised Growth for Africa report at their annual meeting in Nairobi, and the outlook is positive.

41 African countries are set for stronger growth this year, making Africa the second fastest-growing region in the world. East Africa is the fastest-growing region, while West Africa is projected to see growth rise from 3.6% in 2023 to about 4.2% in 2024, with Nigeria, Senegal, Ghana, and Côte d'Ivoire being standout performers.

In Southern Africa, growth is expected to increase from 1.6% in 2023 to about 2.2% in 2024.

Interestingly, the report highlights Mozambique and Rwanda as leaders in projected growth, with Mozambique expecting about 8% growth. In West Africa, Senegal is noted as a top emerging market, due to its recent oil and gas discoveries, which have been a game changer for the country.

The African Outlook Report also emphasises the need for greater private sector participation to complement public investments. This is essential for developing economic growth, human capital, and advancing infrastructure.

“We do need greater private sector participation to complement the public investment.”

AI in Africa

“Only about 8 out of 54 countries in Africa have developed national AI strategies or policies.”

While AI and developing technologies are advancing rapidly, Africa still faces significant challenges in this area.

At the recent AI in Africa conference hosted by RMB, discussions focused on the barriers to AI entry. The consensus was that local companies shouldn’t try to reinvent the wheel. Instead, they should leverage existing open-source AI models and adapt them to meet local needs.

If governments invested more significantly in AI and technological skills development, Africa can harness this rapidly growing sector to drive growth and development across the continent.

Tanzania – seeing real economic changes

“East Africa remains the fastest growing region.”

Tanzania has emerged as a leader within the Southern African Development Community (SADC), driven largely by the political leadership of President Samia Suluhu Hassan, the country's first female president. Over the past three years, President Hassan has implemented various economic reforms aimed at overcoming challenges and spurring economic growth. These efforts are reflected in recent economic projections: the Finance Minister announced that Tanzania's economy is expected to grow by 5.4% in 2024, up from 5.1% in 2023.

One notable example of Tanzania's economic progress is the support provided by RMB, a leading African bank, to Mohammed Enterprises Tanzania Limited (METL). METL, one of the largest companies in Tanzania, operates across more than 30 regions in the country and employs around 24,000 people. The company is a major importer and exporter of commodities such as rice, sugar, wheat, maize, cement, and fertilizer. In 2011, METL contributed approximately 2.5% to Tanzania's GDP.

RMB has assisted METL by structuring a $100 million commodity finance facility, showcasing the bank's expertise in dealing with diversified operations and the complexities of regional trade. This collaboration has enabled METL to overcome challenges like border delays and has positioned the company for further expansion.