The International Monetary Fund (IMF) has raised its economic growth forecast for sub-Saharan Africa to 4.2% in 2025, the highest level since 2021. This growth is expected to be driven by diversified economies, while resource-dependent nations are expected to grow at a slower pace.

However, the IMF warns that elevated uncertainties, including social unrest, could impact stability. Many governments in the region are grappling with financial pressures, leading to protests and discontent among citizens. The resulting social frustration and political pressures make it increasingly challenging to implement reforms.

The report highlights that inequality and social exclusion are driving forces behind this unrest, with youth unemployment being a particularly urgent issue. Over one in four young people in the region are out of work or school, representing a major source of discontent.

For startups and entrepreneurs in Africa, this growth forecast presents opportunities for innovation and investment. However, it also underscores the need to address the underlying social and economic challenges facing the region. By developing solutions that address issues such as inequality, social exclusion, and youth unemployment, startups can play a critical role in driving sustainable growth and stability in Africa.

The IMF's report serves as a reminder that economic growth must be accompanied by social and economic reforms to ensure that the benefits of growth are shared equitably among all citizens. As the African startup ecosystem continues to evolve, it will be important to prioritize solutions that address the region's most pressing challenges.