Standard Bank’s 2023 economic outlook for Africa

The Chief Economist at the Standard Bank Group, Goolam Ballim, provided insights into what 2023 may look like for the African continent in a recent interview with CNBC Africa. Ballim highlighted a mixed outlook for Africa, with some regions showing promise while others facing significant challenges. He projected that sub-Saharan Africa is expected to accelerate its growth from 3.7 percent in the previous year to 4 percent in 2023. However, the performance will vary across different regions, with the eastern shore countries expected to outperform, while the western shore and oil-dependent economies are likely to underperform. Countries such as Nigeria and Angola have been struggling with declining oil output, despite high oil prices, due to factors like sabotage, oil theft, and non-investment. On the other hand, countries like Mozambique, Tanzania, and Ethiopia show promise for growth in industries like gas exports, the gas industry, and peace agreements. In Southern Africa, South Africa is projected to grow at a modest 1.3 percent, with efforts to address power shortages showing some glimmer of hope. While challenges remain, countries like Kenya are expected to show good growth, driven by household spending and potential relief from drought in the agricultural sector.