By Uche Usim
The World Bank has released its latest Africa’s Pulse Report where it disclosed that its Sub-Saharan economy has shown remarkable resilience despite global headwinds, with growth projected to reach 3.8 per cent in 2025, up from 3.5 per cent in 2024.
However, it warned of an impending unemployment crisis as the growth has not created jobs amid a ballooning population.
The global bank attributed the economic uptick to easing inflation and a gradual rebound in investment across several economies in the region.
The World Bank said that the number of countries facing double-digit inflation has fallen sharply, from 23 in October 2022 to 10 in July 2025, indicating progress in price stabilization. However, the region continues to grapple with mounting external pressures, including weaker global demand, tighter financial conditions, and a steep rise in debt service costs.
According to the report, external debt service in Sub-Saharan Africa has more than doubled over the past decade, reaching 2 per cent of GDP in 2024. The number of countries in or at high risk of debt distress has surged from eight in 2014 to 23 in 2025, almost half of the region. This trend, the World Bank warns, could limit governments’ ability to invest in critical infrastructure and social programmes.
While the region’s growth prospects remain positive, the pace is still too slow to significantly reduce poverty or provide enough jobs for a rapidly expanding labour force. Africa is experiencing the fastest population growth in the world, and job creation has not kept pace.
“Over the next quarter century, Sub-Saharan Africa’s working-age population will grow by more than 600 million.
“The challenge will be matching this growing population with better jobs, given that only 24 percent of new workers today land wage-paying jobs. A structural shift toward more medium and large firms is essential to generate wage jobs at scale”, said Andrew Dabalen, World Bank Chief Economist for the Africa Region.
The report emphasised that creating more and better jobs must be at the heart of economic policy. It calls for targeted reforms to reduce the cost of doing business, improve infrastructure such as power, transport, and digital networks, and enhance skills development to meet the demands of modern industries.
Strengthening institutions and governance, the report notes, will also be critical to ensure policy stability, reduce corruption, and attract private investment. “Policies that support a predictable and transparent business environment can help unlock the potential of Africa’s private sector,” Dabalen added.
Sectors like agribusiness, mining, tourism, healthcare, housing, and construction are highlighted as key growth drivers for employment. For instance, every job created in the tourism sector generates an additional 1.5 jobs in related industries.
The World Bank concludes that with the right mix of reforms, investments, and partnerships, Sub-Saharan Africa can transform its demographic challenge into an opportunity, laying the foundation for inclusive and sustainable growth across the continent.
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