By Horn Daily Staff Writer
The World Bank’s latest Africa Pulse Report projects renewed economic momentum across the continent, with Ethiopia, Nigeria, and Côte d’Ivoire emerging as Africa’s leading growth engines in 2025. The report, released this week, highlights the continent’s resilience amid global headwinds and calls for accelerated investment in infrastructure, job creation, and human capital to sustain this growth trajectory.
Africa’s Resilient Outlook
According to the report, growth forecasts have been revised upward for 30 African economies, underscoring Africa’s ability to weather economic shocks and adapt to shifting global conditions. The World Bank now expects the continent’s GDP to expand by 3.8% in 2025, up from 3.5% in 2024.
The institution attributes this improvement to easing inflation, rising investment in digital infrastructure, and increased local production in key economies. However, it also cautions that persistent challenges—such as limited access to energy, inadequate transport networks, and a shortage of skilled labor—could undermine long-term progress if left unaddressed.
Ethiopia Leads from the Horn
Among the standout performers, Ethiopia remains a central focus. Its 2025 GDP growth forecast has been upgraded to 7.2%, one of the highest on the continent. Despite facing reconstruction costs and budget pressures, Ethiopia continues to record strong performance in agriculture, manufacturing, and renewable energy. The government’s Green Legacy initiative and extensive public works programs have generated significant employment while advancing environmental restoration efforts.
West Africa’s Strong Momentum
In West Africa, Côte d’Ivoire and Nigeria are also positioned for robust expansion. Côte d’Ivoire’s economy is expected to grow by 6.3%, driven by industrial diversification and domestic processing of agricultural products, particularly cashew nuts. Nigeria, Africa’s largest economy, is forecast to achieve 4.2% growth, supported by policy reforms aimed at improving fiscal stability, curbing inflation, and strengthening local industries.
Other countries, including Guinea (7.5%), Benin (7.3%), and Niger (6.5%), are also among the continent’s fastest-growing economies, reflecting broader regional resilience.
The Jobs Imperative
The World Bank emphasizes that economic growth must translate into employment opportunities for Africa’s rapidly expanding workforce. Between 2025 and 2050, the continent’s working-age population is projected to increase by 625 million, including 98 million Nigerians, 72 million Congolese, and 67 million Ethiopians.
While Africa maintains one of the highest labor participation rates globally—75% for men and 65% for women aged 15 and above—the majority of new workers remain trapped in low-income, informal jobs. Without major investment in education, technical training, and digital skills, income growth and social mobility will remain limited.
Building Foundations for Sustainable Growth
The report identifies several priorities to unlock Africa’s potential: expanding electricity access, modernizing transport and digital infrastructure, strengthening institutional capacity, and deepening regional trade integration through the African Continental Free Trade Area (AfCFTA).
Power shortages, in particular, remain a critical obstacle. The report notes that frequent power cuts reduce employment rates by up to 14 percentage points, while weak infrastructure raises intra-African trade costs by 30–40%.
Hope and Uncertainty Ahead
Initiatives such as Côte d’Ivoire’s industrialization drive, Ethiopia’s environmental campaigns, and regional digital expansion are providing tangible progress. Fibre-optic networks, for example, have contributed to 5–7% job growth in countries including Benin, Ghana, Kenya, Namibia, Nigeria, and Tanzania.
Yet, the World Bank warns that climate shocks, political instability, and shrinking donor budgets could slow Africa’s momentum. To counter these risks, it recommends combining structural reforms—such as tax modernization and formalization of informal sectors—with short-term measures like public works, social safety nets, and health investments that directly raise productivity.
The Horn’s Moment to Rise
As 2025 approaches, Ethiopia’s strong growth projection stands as a sign of opportunity for the Horn of Africa. With its strategic location, expanding industrial base, and large workforce, Ethiopia could anchor a new era of regional cooperation and shared prosperity.
The question now is whether the continent’s leaders will seize this moment to transform resilience into inclusive growth. The world is watching—and for the Horn of Africa, the next chapter could redefine the balance of power on the continent.