The World Bank has projected that economic activity in Sub-Saharan Africa will climb from 3.3% in 2024 to 3.5% in 2025, and further accelerate to 4.3% by 2026-27. However, this growth is being hindered by the region's largest economies, including Angola, Nigeria, and South Africa, according to the bank's latest Africa's Pulse report.

Excluding these three countries, the rest of the subcontinent is expected to expand by 4.6% in 2025 and quicken to 5.7% in 2026-27. Despite this, the outlook remains vulnerable to heightened risks from global policy uncertainty. The World Bank notes that Sub-Saharan African economies will navigate an uncertain landscape amid greater policy uncertainty, which may lead to changes in the world trade order, ongoing geopolitical shifts, reduced foreign aid budgets worldwide, and challenges posed by extreme weather events.

Inflation is also a concern in the region, although it has been cooling down across Sub-Saharan Africa. In 2024, about 70% of countries in the region saw inflation decline due to improved currency stability, tighter monetary and fiscal policies, and easing global supply chain pressures. However, inflation remains highly uneven across the region, with 14 countries, including Angola, Ethiopia, Ghana, Malawi, Nigeria, Sudan, and Zimbabwe, still facing double-digit inflation rates. The World Bank projects that by 2027, the number of countries with inflation above 10% will fall to six.

Poverty remains a significant challenge in Sub-Saharan Africa, with growth in the region being insufficient to significantly reduce extreme poverty. Real income per capita in 2025 is projected to remain about 2% below its 2015 peak. Although per capita growth is expected to accelerate to an average annual rate of 1.8% between 2025 and 2027, it will only drive a modest decline in poverty. The World Bank forecasts that poverty, measured at $2.15 per person per day in 2017 international purchasing power parity, will peak at 43.9% in 2025 before falling slightly to 43.2% by 2027.

The World Bank attributes the limited progress in poverty reduction to factors such as limited investments in sectors that generate income for the poor, lingering inflation effects, and a likely reduction in global donor aid. To address these challenges, the bank recommends that policymakers in Sub-Saharan Africa focus on implementing policies that promote economic diversification, improve the business environment, and increase investments in human capital and infrastructure.

The report's findings have significant implications for the region's economic development and poverty reduction efforts. As the World Bank notes, Sub-Saharan Africa's growth acceleration will depend on its ability to navigate the uncertain global landscape and address the challenges posed by its largest economies. With the right policies and investments, the region can unlock its growth potential and make significant progress in reducing poverty and improving living standards.

In conclusion, the World Bank's latest Africa's Pulse report highlights the complex challenges facing Sub-Saharan Africa's economic growth and poverty reduction efforts. While the region's growth prospects are promising, they are being held back by the underperformance of its largest economies. To achieve sustainable and inclusive growth, policymakers in the region must address these challenges and implement policies that promote economic diversification, improve the business environment, and increase investments in human capital and infrastructure.