2023 Africa Economic Outlook

On Thursday, February 16, 2023, Corporate Council on Africa (CCA) hosted session one of a two-part webinar series focused on Africa’s Economic Outlook in 2023, which featured leaders of key international institutions who offer their expert views. This webinar focused on the impact of global events on the continent economic growth and was moderated by Mosa Mkhize, a Johannesburg-based public policy advisor and Vice Chair of the Africa Practice for CCA’s Member company Covington and Burling LLP, and featured Dr. Hanan Morsy, Deputy Executive Secretary and Chief of Economics for the United Nations Economic Commission for Africa (UNECA).Mr. Mkhize set the scene by labeling the significant challenges the global economy is facing: growth losing momentum, high inflation, and the effects of COVID-19. Dr. Morsy outlined an optimistic comprehensive look at Africa’s growth trajectory for tahe forthcoming year. She outlines that East Africa will reach 5.1% of economic growth in 2023, Central Africa will reach 3.9% in 2023 with Cameroon and Gabon driving the growth due to an increase in oil prices. West Africa will reach 3.8% in 2023 driven by Senegal due to hydrocarbon exports whereas North Africa will experience a slowdown from 4.1% to 3.8% due to decreased demands in Eurozone, and slow growth across the South Africa region.Dr. Morsy also discussed Africa’s 2023 electoral cycles and its impact on the continent’s macroeconomy. Dr. Morsy emphasized the need for countries to “work on their structural transformation” to better absorb economic shocks such as recessions.The session then turned its focus to the Russian-Ukrainian War and its negative impact on Africa through three channels: food, energy, and finance. While discussing trade on the continent, Dr. Morsy identified the African Continental Free Trade Agreement as a tool to “help build and support regional value chains.” Dr. Morsy and Mr. Mkhize both shared a positive sentiment and optimistic outlook for Africa’s economic future.