A recent report by Afreximbank has indicated that Western Africa has seen a decrease in output growth, mainly due to Nigeria’s slow growth performance. This decline is attributed to the volatility in international oil prices affecting Nigeria’s economy. However, some countries like Côte d’Ivoire, Benin, and Senegal have shown strong growth rates, helping to offset the overall slowdown in the region.
In terms of foreign direct investments (FDI) inflows, key contributors in West Africa included Côte d’Ivoire, Ghana, Nigeria, and Senegal. Despite this, West Africa experienced the second-highest inflation rate in the region primarily driven by Sierra Leone and Ghana.
The report also highlighted that intra-African trade decreased by 8.3 percent in 2023 compared to the previous year, with Southern Africa leading in share of trade within the continent. North and West Africa emerged as the largest recipients of FDI, with each sub-region attracting significant amounts in 2023.
Overall, the report pointed out variations in FDI inflows across sub-regions in Africa, emphasizing the importance of understanding these trends for economic growth and development.
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