WASHINGTON, October 7, 2025 — Sub-Saharan Africa’s economy remains on a steady recovery path, with growth projected to reach 3.8 percent in 2025, up from 3.5 percent in 2024, according to the latest Africa’s Pulse report released by the World Bank. The improvement reflects easing inflation and a modest rebound in investment despite persistent global uncertainty.
The report notes significant progress in stabilizing prices, as the number of countries facing double-digit inflation dropped from 23 in October 2022 to 10 by July 2025. However, the World Bank warns that external vulnerabilities remain high, with debt service costs more than doubling over the past decade and nearly half of the region’s countries now at high risk of debt distress.
“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. A structural shift toward more medium and large firms is essential to generate wage jobs at scale.”
The report calls on governments to focus on policies that lower business costs, improve infrastructure in energy, transport, and digital sectors, and invest in skills development. Strengthening institutions and governance is also seen as critical to attract private investment and sustain growth.
The World Bank identifies agribusiness, mining, tourism, healthcare, and housing as key sectors with high job-creation potential. For instance, each job created in tourism is estimated to generate an additional 1.5 jobs in related industries.
With the right reforms and targeted investments, the report concludes, Sub-Saharan Africa can harness its demographic advantage to create quality jobs and achieve inclusive, sustainable growth.
