What to expect from the African economy in 2022?

The crisis caused by the pandemic, political tensions, and the foreign debts that many African countries face, including Mozambique, will obviously have slowed the growth of African economies in the year just ended.

And 2022, what will it be like?

According to forecasts from the London-based Economic Intelligence Unit, The Economist, most sub-Saharan African economies will see an accelerated economic recovery by 2022, "although they also face a number of factors that could eventually slow down the expected growth."

Specifically, it is expected that the Covid-19 pandemic could become an obstacle to increased trade and foreign investment in the region. This prediction could occur if vaccination levels remain slow in African countries.

"Business continuity, investment prospects and revenue generation may be undermined by successive waves of infection and the ebb and flow of containment measures, including prolonged restrictions on international travel," say experts at The Economist.

Another economic trend that should be expected in 2022, according to analysts, is the pressure caused by exchange rates and foreign debt repayments.

Last year, 2021, had been marked by a series of proposals made by various global and African actors on alleviating Africa's external debt.

For this year, it is expected that the exchange rate and debt pressure, as well as debates and proposals for its restructuring, and the payment of the debt service, will continue to be topical.

In addition, political tension and conflict will continue to be a major issue for African countries in 2022.

As it turns out, there are already many conflict hotspots on the continent, including Ethiopia, which is gradually destabilizing by 2021.

But there are also good prospects for the coming year, especially in commerce, digital, and other fields.

Not only is an increase in commodity prices expected in 2022, but also the digital transformation of the region's economies is expected to continue at a high pace, analysts advance.

Depending directly on the evolution of the pandemic and vaccination campaigns, it is likely that travel and tourism will recover this year (2022).

Also according to the source we have been quoting, the rise in commodity prices is expected to be more pronounced in 2022 and will provide another year of strong performance by African commodity producers and traders.

This bodes well for corporate earnings and stock prices among African producers of energy, metals, other raw materials, and food.

It is also thought that the digital transformation of African goods and services markets and supply chains will continue to develop in 2022, and the region will embrace new technologies, although investment in infrastructure, along with education and training, will be critical to leveraging Africa's digital revolution.

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