World Bank: Sub-Saharan Africa’s growth resilient — but job creation remains biggest challenge

The World Bank says sub-Saharan Africa’s economy remains resilient despite global headwinds, with growth projected to reach 3.8 percent in 2025 — up from 3.5 percent in 2024.

The bank, in its latest Africa’s Pulse report released on Monday, attributed the modest acceleration to easing inflationary pressures and a gradual recovery in investment across the region.

According to the report, titled ‘Pathways to Job Creation in Africa’, the region’s biggest challenge remains the creation of quality jobs to meet the needs of its fast-growing labour force.

The World Bank said the number of countries battling double-digit inflation in the region has declined significantly from 23 in October 2022 to 10 in July 2025, reflecting progress in stabilising prices.

However, the institution warned that downside risks remain, including uncertainty in global trade policy, shrinking external finance, and a sharp rise in debt distress.

“External debt service has more than doubled over the past decade, reaching two percent of GDP in 2024,” the report said.

“The number of Sub-Saharan African countries in or at high risk of debt distress has nearly tripled, rising from eight in 2014 to twenty-three in 2025—nearly half of the region.”

While the pace of growth shows resilience, the bank said it remains insufficient to lift millions out of poverty or meet the demands of Africa’s youthful population.

To address these gaps, the Washington-based institution recommended policies that reduce the cost of doing business, improve infrastructure, and build human capital.

The bank also called for stronger institutions to promote good governance, stability, and private investment.

The multilateral lender identified agribusiness, mining, tourism, healthcare, and housing as sectors with high potential for job creation.

“For every job created in tourism, an additional 1.5 jobs are generated in related sectors,” the report said.

The World Bank said with the right reforms and investments, sub-Saharan Africa can unlock its vast employment potential and chart a path toward inclusive and sustainable growth.

“Over the next quarter century, Sub-Saharan Africa’s working-age population will grow by more than 600 million,” said Andrew Dabalen, World Bank chief economist for the Africa region.

“The challenge will be matching this growing population with better jobs, given that only 24 percent of new workers today land wage-paying jobs.”

Dabalen said a structural shift toward more medium and large firms is crucial to generate employment at scale.