Africa's Second-Best Student in Terms of Growth Risks Severe Financial Risks in 2025
The second-best performing economy in Africa in terms of growth is at risk of facing severe financial risks in 2025. According to the World Bank's "Finance and Prosperity 2024" report, published on September 2, 2024, one-third of African economies may face these risks.
The risks are partly explained by a limited capacity to manage financial crises, combined with external tensions such as global inflation, high interest rates, and vulnerability to climate shocks. Countries with high public debt or excessive dependence on raw materials are also concerned.
Furthermore, the transition to green financing remains a largely under-exploited opportunity in Africa. The report highlights that nearly 60% of African banks invest less than 5% of their portfolios in climate resilience or energy transition projects.
Despite these challenges, Africa is on the path to economic growth. The real GDP growth rate in Africa for 2024 is estimated at 3.8%, and is expected to reach 4.2% in 2025, surpassing global averages of 2.9 and 3.2%. This makes Africa the second-fastest growing continent after Asia. Countries such as Côte d'Ivoire, Senegal, and Ethiopia are experiencing growth rates above 5%.
The report emphasizes the urgency for African countries, including Tunisia, to adopt financial and economic reforms to strengthen their resilience to future shocks. While signs of growth exist, particularly in West and East Africa, challenges related to debt and dependence on raw materials remain, requiring urgent action.
