The Covid-19 induced recession is expected to be less severe than earlier anticipated in the Sub-saharan region, according to the World Bank’s biannual economic analysis for the region.

In the assessment however, the bank says that economic recovery will vary significantly across countries and sub-regions.

According to the bank, economic growth in Sub-Saharan Africa is estimated to have contracted by 2 per cent in 2020, closer to the lower bound of the forecast in April 2020.

The report entitled "Africa Pulse: The Future of Work in Africa: Emerging Trends in Digital Technology Adoption”, notes that a slower spread of the virus and lower Covid-19-related mortality, strong agricultural growth and a faster-than-expected recovery in commodity prices has helped many African economies weather the economic storm induced by the Covid-19 pandemic.

 "African countries have made tremendous investments over the last year to keep their economies afloat and protect the lives and livelihoods of their people,” said Albert G. Zeufack, World Bank Chief Economist for Africa.

"Ambitious reforms that support job creation, strengthen equitable growth, protect the vulnerable and contribute to environmental sustainability will be key to bolstering those efforts going forward toward a stronger recovery across the African continent.”

The report notes that economic recovery hinges on countries deepening reforms that create jobs, encourage investment, and enhance competitiveness.

Growth in the region is forecast to rise between 2.3 and 3.4% in 2021, depending on the policies adopted by countries and the international community.

This, according to the report is attributed to the second wave of Covid-19 infections that is partly dragging down 2021 growth projections, with daily infections about 40 per cent higher than during the first wave.

While some countries had a significant drop in Covid-19 infections due to containment measures adopted by the government, other countries are facing an upward trend in infections, the report reads in part.

Consequently, real GDP growth for 2022 is estimated at 3.1 per cent. For most countries in the region, activity will remain well below the pre-Covid-19 projections at the end of 2021, increasing the risk of long-lasting damage from the pandemic on people’s living standards.

Sub-Saharan Africa’s recovery is expected to vary across countries. Non-resource-intensive countries, such as Côte d’Ivoire and Kenya, and mining-dependent economies, such as Botswana and Guinea, are expected to see robust growth in 2021, driven by a rebound in private consumption and investment as confidence strengthens and exports increase.

In the Eastern and Southern Africa sub-region, the growth contraction for 2020 is estimated at -3.0%, mostly driven by South Africa and Angola, the sub-region’s largest economies.

Excluding Angola and South Africa, economic activity in the subregion is projected to expand by 2.6 per cent in 2021, and 4 per cent in 2022, Growth in the Western and Central Africa subregion contracted by 1.1% in 2020, less than projected in October 2020 partly due to a less severe contraction in Nigeria, the subregion’s largest economy, in the second half of the year.

Real gross domestic product in the Western and Central Africa sub-region is projected to grow 2.1 per cent in 2021 and 3 per cent in 2022.

The Pulse also notes that African countries can speed up their recovery by ramping up their existing efforts to support the economy and people in the near term, especially women, youth and other vulnerable groups.

Africa’s Pulse recommends those policies be complemented by reforms that fosters the country’s inclusive productivity growth and competitiveness. Reducing countries’ debt burdens will release resources for public investment, in areas such as education, health, and infrastructure.

Investments in human capital, the reported added, will help lower the risk of long-lasting damage from the pandemic which may become apparent over the longer term, and can enhance competitiveness and productivity.

"The next twelve months will be a critical period for leveraging the African Continental Free Trade Area in order to deepen African countries’ integration into regional and global value chains.”

In addition, the report also notes that reforms that address digital infrastructure gaps and make the digital economy more inclusive–ensuring affordability but also building skills for all segments of society- are essential to improve connectivity, boost digital technology adoption, and generate more and better jobs for men and women.

The World Bank, one of the largest sources of funding in the Covid-19 battle has so far raised $12 billion to help low- and middle-income countries purchase and distribute Covid-19 vaccines, tests, and treatments, and strengthen vaccination systems.

The Bank announced that it is taking broad, fast action to help developing countries respond to the health, social and economic impacts of Covid-19.