Rwanda to outgrow Nigeria, South Africa, others in 2022 – World Bank

The World Bank has said Rwanda will outgrow Nigeria, South Africa and all other African countries in 2022 despite the projected slow pace of growth when compared to 2021.

In its latest economic report titled “Stagflation Risk Rises Amid Sharp Slowdown in Growth”, the world’s leading multilateral financial institution said Rwanda’s economy is expected to grow at a 6.8 per cent rate, the highest for any African nation in 2022 while in 2023 and 2024 it will expand at 7.2 per cent and 7.4 per cent, respectively.

In 2021, the economy grew at 10.9 per cent to exceed its 9.5 per cent pre-pandemic growth rate recorded in 2019. Also, the second-largest growth rate achieved in Africa in 2021. Botswana was the biggest at 12.1 per cent.

However, Africa’s largest economy Nigeria was estimated to grow at 3.4 per cent in 2022, largely due to rising oil prices. Global uncertainty amid Russia-Ukraine, Nigeria’s 2023 General Elections and emerging economies are expected to weigh on the economy in 2023 and 2024, containing the nation’s growth rate at 3.2 per cent in the two following years.

Growth in South Africa, the second-largest economy in Sub-Saharan Africa, is projected to remain largely subdued at 2.1 per cent in 2021. In 2023 and 2024, World Bank predicted that South Africa would grow at 1.5 per cent and 1.8 per cent, respectively.