By zainab.joaque@awokonewspaper.sl
Freetown, SIERRA LEONE – The latest report from the African Development Bank (AfDB) paints a promising picture for Sierra Leone’s economic growth, forecasting a significant boost driven by the real sector, expected to reach 4.6 percent in 2024.
The report highlights key factors contributing to this growth trajectory, including increased agricultural output, expansion in the services sector, and ongoing reforms aimed at enhancing private sector involvement in energy and mining. These developments are anticipated to propel growth not only in Sierra Leone but also in other West African nations, such as Benin (6.4 percent), Gambia (6.2 percent), Togo (6 percent), Mali (4.8 percent), and Burkina Faso (4.1 percent).
Across the West African region, a positive growth trend is forecasted, with an estimated increase from 3.2 percent in 2023 to 4 percent in 2024 and 4.4 percent in 2025. With the exception of Nigeria and Ghana, all countries in the region are expected to achieve growth rates of at least 4 percent in 2024.
However, inflation remains a concern across various regions. In East Africa, inflation reached its peak at 30.6 percent in 2023, primarily driven by the situation in Sudan, where economic disruptions and shortages led to sharp price increases. Excluding Sudan, average inflation in East Africa stood at 13.8 percent, below the continent’s average of 17.8 percent.
In West Africa, inflation rates were notably high, with Sierra Leone (49.9 percent) and Ghana (41.7 percent) leading the pack. Nigeria also experienced a significant rise in inflation (24.2 percent) following the abolition of fuel subsidies in May 2023 as part of fiscal reforms. Meanwhile, Central Africa witnessed a doubling of inflation from 6.8 percent in 2022 to 11.8 percent in 2023, while Southern Africa saw a decline from 10.7 percent to 8.5 percent, driven by improvements in countries like Angola, Botswana, South Africa, and Zimbabwe.
As Sierra Leone prepares to capitalize on the momentum generated by the real sector, policymakers must remain vigilant in addressing inflationary pressures and implementing necessary reforms to sustain economic growth and stability in the coming years. ZIJ/2/4/2024