The end of the Covid-19 crisis and the war in Ukraine, in addition to endogenous factors, have created a serious inflation crisis. This podcast briefly analyzes the situation of the 10 most impacted African countries. Inflation in Africa: 10 most affected countries (podcast):
Inflation has become the obsession of all the economies of the world. Africa is no exception. The inflation rate in some countries is close to 100% in the first two months of 2023.
Entitled “Africa’s Macroeconomic Performance and Prospects 2023,” a recent AfDB report indicates, however, that the continent’s medium-term growth prospects are subject to significant constraints, including a sharp slowdown in the global economy, persistent inflation, prolonged tightening of global financial conditions, high cost of capital, depreciations of national currencies, declining financial flows, continued climate-related losses and damages, geopolitical tensions, and a further escalation of the Russia-Ukraine conflict.
The AfDB also noted that inflation in Africa is expected to rise from an average of 13.8% in 2022 to 13.5% in 2023, before falling to 8.8% in 2024, below the 9.1% recorded prior to the coronavirus outbreak in 2019 and the 9.6% average recorded between 2014 and 2018.
At the regional level, inflation will remain high in East Africa due to persistent supply constraints, the impact of climate change, conflicts, and political uncertainty affecting some countries in the region.
Central Africa will experience relatively stable and low inflation, projected at 5.7 percent in 2023, partly reflecting coordinated monetary policies and the relative advantages of a stable regional currency.
Here are the African countries most affected by inflation at the beginning of 2023:
- Malawi: 25,9%
- Burundi: 28,6%
- Rwanda: 30,3%
- South-Sudan: 30,7%
- Egypt: 31,9%
- Ethiopia: 32%
- Sierra-Leone: 38,48%
- Ghana: 54,1%
- Sudan: 83,6%
- Zimbabwe: 92,8%