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Zambia and the Democratic Republic of Congo (DRC) were among the countries hardest hit by the decline in energy and metal prices in 2024, according to the latest World Bank Global Economic Prospects Report.
The report, released in January 2025, revealed that the drop in these key commodities— which had peaked in 2022— required significant fiscal consolidation efforts in industrial commodity-exporting economies.
The World Bank noted that Zambia, DRC, Central African Republic, and Sierra Leone saw slowed growth due to the drop in energy and metal prices, placing a strain on their economies.
This was particularly challenging for countries like Zambia, which heavily depended on copper and other mineral exports.
However, the report highlighted that macroeconomic and fiscal reforms, including the unification of exchange rates and improved revenue administration, helped narrow fiscal deficits.
In Zambia, these reforms were seen as crucial in boosting business confidence amid these challenges.
In sub-Saharan Africa (SSA), overall growth is expected to rise from 2.9 percent in 2023 to 3.2 percent in 2024, but the World Bank revised its initial growth forecasts due to the ongoing conflict in Sudan and challenges in other countries.
In South Africa, growth was boosted by improved electricity supply and easing inflation, though structural issues such as transport bottlenecks and high crime rates still hindered progress.
Similarly, Nigeria saw stronger growth driven by the services sector, particularly in telecommunications and finance.
Despite these positive signs, the report emphasizes that ongoing challenges, including global commodity price fluctuations and geopolitical instability, continue to impact the region’s economic recovery.
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