World Bank charges Nigeria, others to take advantage of AfCFTA to expand economic activities, create jobs
* …growth is still not strong enough to reduce poverty in Sub-Saharan Africa.
The World Bank has called on Nigeria and other countries in the Sub Saharan region to leverage the African Continental Free Trade Agreement, AfCFTA, to boost regional trade, expand economic activities and create jobs for the people.
The World Bank made this call in its April 2025 Africa Pulse report released on the sidelines of the ongoing Spring Meetings of the IMF and the World Bank.
While noting that economic growth in Sub-Saharan Africa is showing some resilience despite uncertainty in the global economy and restricted fiscal space, the World Bank however expressed concern that economic growth is not strong enough to reduce poverty on the continent.
Regional growth is expected to reach 3.5% in 2025 and further accelerate to 4.3% in 2026-2027. This growth is mainly due to increased private consumption and investments as inflation cools down and currencies stabilize. The median inflation rate in the region declined from 7.1% in 2023 to 4.5% in 2024.
However, growth is still not strong enough to significantly reduce poverty and meet people’s aspirations – a core concern of the 31st edition of Africa’s Pulse, which focuses on Improving Governance and Delivering for People in Africa. Real income per capita in 2025 is expected to be approximately 2% below its most recent peak in 2015. Countries rich in resources and those facing fragility, conflict and violence are growing more slowly than more diversified economies, and the region is struggling to create enough good jobs for its young population.
“There is a growing gap between people’s aspirations for good jobs and functioning public services and often sub-optimal markets and institutions,” said Andrew Dabalen, World Bank Chief Economist for the Africa Region.
According to the World Bank, “Urgent reforms, backed by more competition, transparency and accountability, will be key to attract private investments, increase public revenue, and create more economic opportunity for millions of Africans entering the workforce each year.
“Sub-Saharan Africa faces heightened uncertainty due to changes in trade dynamics, regional conflict, and climate change affecting people and crops. While the direct and indirect impacts of policy changes will materialize and evolve over time, African economies have the option to liberalize and diversify their markets, including leveraging the African Continent Free Trade Area (AfCFTA) to boost regional trade, to expand economic activity and provide jobs for young people.
“To foster inclusive growth, policymakers must maintain prudent monetary policy to curb inflation while supporting economic activity.
“As foreign aid declines, governments need to align fiscal consolidation with development goals, reinforce the fiscal contract through better service delivery, and adopt fair, transparent tax systems.
“Enhancing public trust and enabling civil society participation are vital for sustainable debt management, collective action, and improved governance.”
