Sub-Saharan Africa’s economy is projected to grow by 3.8 percent in 2025, up from 3.5 percent in 2024, according to the World Bank’s latest biannual economic update for the region. The report notes that inflationary pressures have eased and investment has modestly recovered, despite ongoing global economic uncertainty.
The number of countries with double-digit inflation has decreased significantly, from twenty-three in October 2022 to ten in July 2025, indicating progress in price stabilization. However, the region continues to face several risks such as uncertainty around global trade policies, reduced investor interest, and a decline in external financing sources including official development assistance. External debt service now exceeds double its level from a decade ago, reaching 2 percent of GDP in 2024. Additionally, the number of Sub-Saharan African countries considered at high risk of debt distress has increased from eight in 2014 to twenty-three in 2025.
Despite the growth figures, the World Bank warns that current rates are not enough to substantially lower extreme poverty or provide sufficient jobs for a rapidly expanding labor force. The region is undergoing what is described as the world’s largest and fastest demographic shift.
Andrew Dabalen, World Bank Chief Economist for the Africa Region, stated: “Over the next quarter century, Sub-Saharan Africa’s working-age population will grow by more than 600 million. The challenge will be matching this growing population with better jobs, given that only 24 percent of new workers today land wage-paying jobs. A structural shift toward more medium and large firms is essential to generate wage jobs at scale.”
The report highlights policy priorities such as reducing business costs to support expansion and entry of high-growth firms into markets. It also emphasizes improvements in infrastructure—including energy, digital access, and transport—as well as investments in human capital and skills development as key factors for fostering an environment where people and businesses can succeed.
Further recommendations include strengthening institutions and governance to ensure stability and attract private sector investment by creating a predictable business climate and curbing corruption.
Private sector growth is seen as crucial across sectors like agribusiness, mining, tourism, healthcare, housing, and construction. The report notes that every job created in tourism leads to an additional 1.5 jobs generated elsewhere in related industries. With appropriate reforms and investments, the World Bank suggests Sub-Saharan Africa could unlock significant employment opportunities while pursuing inclusive economic growth.