Over 468 Million Africans Live In Poverty – ECA Report

Poverty levels in Africa have continued to rise, despite economic growth projections, with the number of people living in extreme poverty increasing to an estimated 468 million, according to the latest Economic Report on Africa (ERA) by the Economic Commission for Africa (ECA).

The report forecasts a gradual recovery in the continent’s economic growth, expecting it to reach 3.8 per cent in 2025 and 4.1 per cent in 2026, driven by increased private consumption and improved trade performance.

However, the rebound remains insufficient to significantly enhance living standards or achieve the Sustainable Development Goals (SDGs).

The report highlights a concerning trend in poverty despite economic recovery, with recent economic crises exacerbating income inequality and social welfare challenges.

The report also warns of multiple downside risks, threatening Africa’s growth prospects. These include global economic tensions, an escalated U.S.-China trade war, regional and domestic conflicts, and the increasing frequency of climate shocks.

Although Africa’s debt-to-gross domestic product (GDP) ratio is expected to decline from 67.3 per cent in 2023 to 62.1 per cent in 2025, high debt levels and expensive borrowing costs continue to hinder essential development spending.

The ECA has therefore called for reforms in the global financial system to ease the continent’s fiscal constraints.

Climate change remains a significant challenge for Africa’s development. In 2022 alone, weather, climate, and water-related hazards affected over 110 million Africans, resulting in economic losses exceeding $8.5bn.

Rising temperatures and climate variability are projected to further reduce agricultural yields, exacerbating food insecurity in vulnerable regions.

The report said youth unemployment is another pressing concern. With 76 million young Africans not engaged in employment, education, or training, the ECA has emphasised the need for greater investment in skills development to harness the continent’s youthful workforce and enhance economic resilience.

Amid global trade uncertainties, the report identifies opportunities for Africa to bolster intra-regional trade and self-reliance through the African Continental Free Trade Area (AfCFTA).

While Africa remains the second-fastest-growing region globally, the contribution of trade to overall economic growth is below historical levels. Nonetheless, intra-African trade is becoming more dynamic and diversified in some sub-regions.

Presenting the findings, Director of Macroeconomics, Finance, and Governance at the UNECA, Zuzana Schwidrowski, noted that while African economies demonstrate resilience, growth remains insufficient to drive significant social development.

She highlighted the need for sustained efforts in structural reforms, climate adaptation, and investment in human capital to foster inclusive and sustainable growth across the continent.

Over 468 Million Africans Live In Poverty – ECA Report is first published on The Whistler Newspaper