The African Development Bank (AfDB) has revealed in its 2023 West Africa Economic Outlook that several West African countries are experiencing a deceleration in economic growth this year, with the exception of Cape Verde, The Gambia, Guinea, Mali, and Niger.
The report, titled “Mobilising Private Sector Financing for Climate and Green Growth in West Africa,” provides an assessment of the economic performance of 15 West African nations, including Benin, Burkina Faso, Côte d’Ivoire, Ghana, and others.
According to the report, West Africa’s average Gross Domestic Product (GDP) slowed to 3.8% in 2022 from 4.4% in 2021. The deceleration is attributed to various factors, including the resurgence of COVID-19 in China, inflationary pressures caused by Russia’s invasion of Ukraine, and tightened monetary policies by advanced economies.
Despite the challenges, the region’s GDP growth outlook remains positive, projected to reach 3.9% in 2023 and 4.2% in 2024. The report emphasizes the importance of transitioning to green growth, presenting an opportunity for businesses and governments to embrace sustainable and environmentally friendly development.
Prof. Kevin Urama, AfDB’s Chief Economist, highlighted the need for greater effort in mobilizing domestic resources and private sector financing to achieve climate and green growth transitions. He noted that Africa is not receiving adequate climate financing and underscored the potential for optimizing the continent’s natural capital to drive green development.
Additionally, the report ranked Guinea-Bissau, Mali, Liberia, and Niger among the world’s most vulnerable countries to climate change and environmental hazards. To encourage private sector financing for climate change and green growth, the AfDB suggests deploying innovative instruments and mechanisms to attract investment in West African countries.