The World Bank in Africa

Sub-Saharan Africa, home to more than 1 billion people, half of whom will be under 25 years old by 2050, is a diverse continent offering human and natural resources that have the potential to yield inclusive growth and eradicate poverty in the region. With the world’s largest free trade area and a 1.2 billion-person market, the continent is creating an entirely new development path, harnessing the potential of its resources and people.

The region is composed of low, lower-middle, upper-middle, and high-income countries, 22 of which are fragile or conflict-affected. Africa also has 13 small states, characterized by a small population, limited human capital, and a confined land area.

The economic impact of the COVID-19 shock in Sub-Saharan Africa (SSA) has been severe, however economic growth in Sub-Saharan Africa (SSA) is set to emerge from the 2020 recession and expand by 3.3 percent in 2021. This rebound, currently fueled by elevated commodity prices, a relaxation of stringent pandemic measures, and recovery in global trade, remains vulnerable in light of low rates of vaccination on the continent, protracted economic damage, and a slow pace of recovery. Growth for 2022 and 2023 will remain just below 4 percent, continuing to lag the recovery in advanced economies and emerging markets.

East and Southern Africa, the hardest hit region by the third wave of the coronavirus, is expected to rebound from a 3.0 percent contraction of GDP in 2020 to growth of 3.3 percent in 2021 and 3.4 percent in 2022. Growth in South Africa is projected to rebound from -6.4 percent in 2020 to 4.6 percent in 2021, and following two consecutive years of recession, economic activity in Angola is projected to rebound from -5.4 percent in 2020 to 0.4 percent in 2021. Excluding Angola and South Africa, the subregion is expected to grow by 3.1 percent in 2021 and 4.3 percent in 2022. 

Growth in West and Central Africa is expected at 3.2 percent in 2021, up from -0.8 percent in 2020 and estimated to grow further by 3.6 percent in 2022. The subregion is expected to pick up momentum from last year’s weak performance to 4.5 percent in 2021 and 5.3 percent in 2022. Nigeria is projected to grow from -1.8 percent in 2020 to 2.4 percent in 2021, thanks to better performance of both oil and non-oil sectors. Excluding Nigeria, The West African Economic and Monetary Union is projected to grow at 5.6 percent in 2021 and 6.1 percent in 2022, reflecting favorable terms of trade.

Faster vaccine deployment would accelerate the region’s growth to 5.1 percent in 2022 and 5.4 percent in 2023—as containment measures are lifted faster and spending increases. However, should vaccine delivery and coverage continue to lag, growth could slow to 2.4 percent in 2023.

African countries have seized the opportunity of the crisis to foster structural and macroeconomic reforms that could pave the way for increased inclusive growth over the long-term. Several countries have embarked on difficult but necessary structural reforms, such as the unification of exchange rates in Sudan, fuel subsidy reform in Nigeria, and the opening of the telecommunications sector to the private sector in Ethiopia. Reforms that deliver reliable electricity, including better functioning of public utilities, can power the manufacturing sector and the digital economy. Finally, reforms that address digital infrastructure gaps and make the digital economy more inclusive—ensuring affordability and building skills for all segments of society—are critical for improving connectivity, boosting digital technology adoption, and generating more and better jobs for men and women.

Last Updated: Oct 01, 2021

More than a year into the pandemic, recovery in the region is hampered by low vaccination rates and limited resources to continue providing financial assistance to vulnerable households and firms. 

As part of the global response since the start of the COVID-19 crisis, the World Bank Group has committed over $157 billion to address the impacts of the pandemic, which includes more than $39 billion for African countries to help them strengthen health systems and services, establish and expand social safety nets, and weather the economic impacts of the crisis. More operations are under preparation for FY22 for about $46 billion.

Our response efforts are focused around four main areas: saving lives, protecting poor people, protecting and creating jobs, and building back better.

Saving Lives: The World Bank has taken fast action to help African countries strengthen their pandemic response and health care systems and is now stepping up its support on vaccine purchase and deployment. With the vaccine roll-out underway in many African countries, ensuring an adequate supply of affordable COVID-19 vaccines is a priority for the region. The World Bank has committed $2.92 billion for the procurement and deployment of COVID-19 vaccines in 41 countries in the region. This emergency vaccine financing complements ongoing COVID-19 emergency projects in 36 countries (amounting to $988 million) which focus on strengthening prevention, expanding testing and providing medical equipment such as portable ventilators, oxygen concentrators, personal protective equipment and masks. AVAT vaccine deliveries of Johnson&Johnson doses started the first week of August 2021, with 5 million doses delivered in the first month of implementation. Following the timelines provided by AVAT, new deliveries have been on track, with 13.54 million doses already delivered to countries in Africa and CARICOM as of November 5th. Of the 13.12 million doses delivered to Africa, 10.36 million doses are being financed (or will be retroactively financed) through WB projects in 26 countries. 

Protecting poor people: To protect poor and vulnerable citizens and cushion the impact of the crisis on their livelihoods, the Bank is helping African countries scale up and adapt social safety net programs and ensure food security by supporting farmers to expand agricultural production as well as sustain food supply chains. Since the start of the pandemic, more than $4.1 billion new financing has been approved for social safety net programs across the continent, including in Sudan, Togo, Niger, and the Democratic Republic of Congo. This boost to safety net programs is helping address chronic poverty through cash transfers and supporting those who lost their livelihoods following the pandemic.

Protecting and creating jobs: Micro, Small and Medium-Sized Enterprises, which provide the majority of jobs, have been particularly hard hit across the region where informal firms dominate employment. Public works and urban programs in countries such as the Central African Republic and Kenya are being launched or scaled up to facilitate job creation in low income communities and to help increase access to livelihood support for extremely poor and vulnerable people like women and the youth. Meanwhile, the World Bank Group’s private sector arm, the International Finance Corporation (IFC), is working to increase financing for small businesses, develop digital infrastructure, help keep agriculture supply chains running, and enable local manufacturers to access working capital.

Building Back Better: While addressing the immediate impacts of the COVID-19 pandemic, the focus on recovery remains central to the Bank’s response and support to countries. More than 20 SSA countries have requested development policy operations or budget support from the Bank to assist them to manage the fiscal impacts of the pandemic. As of October 5, 2021, the World Bank has approved 35 Development Policy Operations in SSA for more than $5.9 billion provided by the International Development Association (IDA) and $1.3 billion provided by International Bank of Reconstruction and Development, in support for policy actions to help with the recovery process.

The World Bank Group continues to prioritize investments in human capital and digital economy. It supports initiatives in favor of climate change adaptation and mitigation and is deploying efforts  to address the drivers of fragility, conflict, and violence. Finally, the World Bank is scaling up its work on regional integration, taking a holistic view of the continent to improve connectivity, leverage economies of scale, and advance collective action to address shared challenges.

Research and analysis: Knowledge is essential for governments to make better policies and institutions to make aid more effective. Our most recent regional studies can be found here, and analytical work by country is published on each country’s website. These knowledge products, paired with strong analytical work by sector, can help promote substantive discussions and drive evidence-based policy making around key development issues.

Last Updated: Oct 01, 2021

In response to the COVID-19 pandemic, more than $39 billion has been dedicated to operations that support health services, establish and expand social safety nets, and help governments to weather the economic impacts of the crisis. In addition, $2.92 billion has been committed for the procurement and deployment of COVID-19 vaccines in 41 countries in the region. More operations are under preparation for FY22 for about $46 billion.

A few development results include:

Adapting to climate change and building climate resilience

In 2020, the World Bank launched The Next Generation African Climate Business Plan (NG-ACBP), setting out an innovative blueprint to help Sub-Saharan African economies achieve low carbon, climate-resilient outcomes. Under the Plan, the Bank is channeling $22.5 billion to Sub-Saharan Africa for climate adaptation and mitigation from 2021–25. This complements the World Bank Group global Climate Action Plan, which sets a target for 35% of our financing to have climate co-benefits, on average, over the next five years and that 50% of this financing supports adaptation and resilience.  The NG-ACBP also underwrites the World Bank’s efforts to support a green, resilient and inclusive recovery from the impacts of the COVID-19 pandemic while addressing the longer-term challenge of climate change in Sub-Saharan Africa.

The $75 million Madagascar Integrated Urban Development and Resilience project for Greater Antananarivo will benefit 65,000 low income neighborhoods and another 2 million indirectly through flood protection investments, citywide infrastructure improvements, and enhanced capacities to respond promptly to crises.

Since 2015, more than 2 million people have benefited from the $600 million Regional Sahel Pastoralism Support Program. The program has also improved animal health thanks to the construction and rehabilitation of nearly 300 vaccination parks - where more than 200 million animals have been vaccinated - as well as the construction of nearly 70 veterinary units and training for more than 50 veterinarians.

Supporting inclusive governance and transforming economies 

Enabling efficient and inclusive delivery of services, such as judicial courts, waste management, water, electricity, ICT and safety nets, and building strong and accountable institutions and systems that are resilient to economic, social and environmental pressures are the foundations of the Bank’s work on governance and inclusion in Africa.

In March 2020, Somalia began receiving debt relief under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative, which will help Somalia reduce its debt from $5.2 billion at the end of 2018 to $557 million once it reaches the HIPC Completion Point in about three years’ time. The Bank played a critical role in helping Somalia achieve this milestone, providing $140 million for Pre-Arrears Clearance grants in FY19 and $375 million for development policy financing to build state capacity, improve financial management and economic governance and promote inclusive private sector-led growth.  In addition, since the first quarter of 2021, the Bank has provided Somalia nearly $400 million in financing  aimed at supporting policy reforms needed to improve government coordination, strengthen fiscal management, and promote inclusive private sector growth.

The World Bank has supported the Central African Republic’s efforts to stabilization to prevent the state from collapsing. Bank-supported programs have helped CAR to a path toward stabilization, peace, and social cohesion, while increasing state capacity and decision making for stronger social contract and economic recovery. As of August 2020, the IDA lending portfolio consists of 15 national projects with a total commitment of $563.5 million, and two regional projects with a total commitment of $231 million.

Empowering women and girls to boost Sub-Saharan Africa’s human capital

The World Bank's Africa Human Capital plan sets ambitious targets to boost Sub-Saharan Africa’s human capital—the knowledge, health and resilience of its people. To support these ambitions, the World Bank is investing over 31 billion across 227 human development projects in the region, and nearly $6.6 billion in new investments are in the pipeline for FY22 (as of Oct 1, 2021). Since the Africa Human Capital Plan launched in 2019—of which women and girls’ empowerment is a central tenant — the World Bank has approved over $6 billion in investments that champion women and girls. Together with governments, regional institutions, and development partners, the World Bank has expanded multi-sectoral programs with immediate and long-term solutions that invest in women and girls.

For example, the Sahel Women’s Empowerment and Demographic Dividend Project (SWEDD) works across the Sahel to improve the availability and affordability of reproductive health services, strengthen specialized training centers for rural-based midwives, improve nursing services, and pilot and share knowledge on adolescent girls’ initiatives, increasing their agency and productivity. SWEDD has so far reached more than 2 million girls in nine countries, beyond the Sahel region, with $680 million in Bank funding.

In Zambia, the Girls Education and Women Empowerment and Livelihood project (GEWEL) has so far provided more than 28,000 girls from poor households with secondary school bursaries and 75,000 poor women with livelihood packages, including, life and business skills training, mentorship, and support through savings groups.  In May 2021, the World Bank approved $105 million in additional financing to help secure the livelihoods of more than 300,000 poor and vulnerable households, including women and girls, amidst the COVID-19 pandemic.

Stepping up to support regional integration in Africa

The WBG’s Regional Integration and Cooperation Assistance Strategy Update supports Africa’s efforts at regional integration, against a background of the Covid-19 pandemic. The strategy focuses on: (i) regional connectivity; (ii) trade and market integration; (iii) human capital development; and (iv) building resilience to fragility. It also supports cross-border approaches to address common challenges faced by countries in the fragility hotspots of the Horn of Africa, Sahel, Lake Chad and Great Lakes regions. The current program of about $15 billion covers 80 projects in 39 countries and several regional institutions. Over $6 billion have helped to construct over 10,000 kms transmission lines in West, East and Southern Africa. In the aftermath of the West Africa Ebola crisis, the World Bank leveraged more than $600 million to launch the Regional Disease Surveillance Systems Enhancement (REDISSE) Project that is helping to strengthen health systems and support effective disease surveillance in 16 Western and Central African countries.

Harnessing technological developments to improve access to clean and reliable energy

Energy access remains a challenge in Africa where one in three people are still without access to electricity. To address this challenge, the Bank is helping to increase access to affordable reliable and sustainable energy across Africa. Operations support grid extension and expansion of transmission networks, innovative off-grid electrification solutions, expansions of renewable generation capacity, development of regional power pools, and improvement of service efficiency. 

Under the West Africa Power Pool program, the Ghana-Burkina Faso Interconnector reduced the cost of electricity supply to Burkina Faso, and increased Ghana’s electricity export capacity. By mitigating power shortages and creating economic transformation opportunities in both Ghana and Burkina Faso, the project strengthened regional and bilateral relations, enabling them to eventually materialize the wider regional electricity market.

This year, the Rwanda Energy Access and Quality Improvement Project (EAQIP) will enhance the availability and efficiency of low-cost renewable energy and expand grid connections for residential, commercial, industrial, and public sector consumers. The project includes the World Bank’s largest clean cooking operation in Africa, and the first project co-financed by the recently launched Clean Cooking Fund (CCF), hosted by the World Bank’s Energy Sector Management Assistance Program (ESMAP).

Last Updated: Oct 01, 2021

The World Bank Group (WBG) leverages partnerships, knowledge, and financing instruments to further its twin goals of ending poverty and promoting shared prosperity. Deepened and accelerated support for African development requires working in partnership with a broad range of actors, aligning objectives and exploiting synergies and comparative advantages.

The World Bank has been working closely with the African Union (AU) Vaccine Acquisition Trust (AVAT) and the United Nations Children Fund (UNICEF) since January 2021 to reach the AU’s ambitious goal of vaccinating at least 70% of the African population against COVID-19 as quickly as possible through a continental approach. The high-level AU Vaccine Acquisition Trust (AVAT) is comprised of the African Union Special Envoys for COVID-19, Africa CDC, Afreximbank, and the United Nations Economic Commission for Africa. To date, World Bank financing through AVAT has reached $688 million.

The WBG is a founding member of the Sahel Alliance, along with France, Germany, the European Union (EU), African Development Bank (AFDB), and United Nations Development Programme (UNDP). The alliance aims to strengthen the peace-security-development nexus in G5-Sahel countries by expanding access to services and economic opportunities.

The WBG, along with the EU and AFDB, is assisting Horn of Africa countries to develop a regional strategy focused on deepening collaboration on infrastructure, trade and economic integration, resilience, and human capital.

The World Bank also supports countries to address forced displacement and refugees. Collaboration with the United Nations High Commissioner for Refugees (UNHCR), the EU, and the African Union Commission (AUC) underpins World Bank programs implementing a development approach to forced displacement in the Great Lakes, Horn of Africa, Sahel, and Lake Chad countries. The World Bank is working with the AUC and UNECA to facilitate implementation of the African Continental Free Trade Area.

We are stepping up support for digital transformation in Africa in collaboration with the AUC, AFDB, UNECA, China, the French Development Agency (AFD), the UK Commonwealth & Development Office (FCDO), Japan International Coordination Agency (JICA), EU, European Investment Bank (EIB), Bill and Melinda Gates Foundation, the International Telecommunications Union, and Smart Africa. To date, we have launched 35 digital economy country diagnostics as part of the African Union’s Digital Economy for Africa Initiative, aiming to ensure every individual, business and government in Africa are digitally enabled by 2030. As of September 2021, nearly 20% of the Bank’s total pipeline and active investment operations in Africa have dedicated digital activities. Currently, there are 68 operations, for a World Bank total commitment of US$8.95 billion.

Improved access to sustainable energy, including in rural areas, is a key aim of partnership with AFD, Islamic Development Bank (ISDB), Arab Coordination Group, JICA, AfDB, EIB, and the China National Energy Administration.

The Africa Region also leverages the combined strength of the entire World Bank Group by working closely with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) in energy, agribusiness, water, transport, and other priority areas.

Last Updated: Oct 01, 2021