High global oil prices have driven up diesel costs, which many businesses depend on for electricity generation, leading to increased production outlays, while a faltering currency has made imports more expensive.
GDP growth in South Africa a significant producer of gold, platinum group metals, and iron ore is anticipated to rebound from 0.1 in 2023 to 1.8 in 2024, as the nations electricity crisis is likely to ease and the global economic climate improves.
The ongoing electricity woes is having a devastating impact on the economy and business.
Some nonoil resourceintensive countries are also set to experience strong recoveries, boosted in some cases by new mining projects, such as iron ore in Liberia and Sierra Leone and green energy commodities in the Democratic Republic of the Congo (DRC) and Mali.
Growth for oil exporters such as Nigeria, Angola, Equatorial Guinea, and South Sudan is expected to slow down to 3.1 in 2024 from 3.3 in 2023, mainly as a result of the projected decrease in crude oil prices and production deceleration.
Senegals economy encountered challenges in 2022, primarily due to a lessthan satisfactory harvest season and a pullback in industrial production.
The IMF anticipates the West African countrys economy to expand by 10.6 in 2024, powered in part by the start of a new natural gas project and infrastructure investment.
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