Central Africa's 2022 economic performance also stood out with an inflation rate of 6.7 per cent, the best across the continent. In contrast, North, Southern, West, and East Africa reported inflation rates of 8.2 per cent, 12.6 per cent, 17 per cent, and 28.9 per cent, respectively.

Financially, the region demonstrated the strongest budget performance. The 2022 budget balance improved to a deficit of just 0.6 per cent of GDP, bettering the previous year by 0.4 percentage points. The lingering effects of the Russian invasion of Ukraine on energy and food prices, despite enhanced export rates, primarily explain this deficit, as per AfDB’s report.

Notably, the Democratic Republic of Congo played a significant role at the intraregional level, registering an impressive 8.5 per cent growth.

Addressing policy recommendations, the report emphasised the urgency of curbing inflation and fostering economic resilience. Central Africa's potential lies in its agro-industrial sector, which holds a distinct comparative advantage, necessitating its development.

Central Africa requires approximately $128 billion from 2020 to 2030, averaging $11.6 billion annually, to fund green growth and sustainable development. The region's substantial natural assets, notably the Congo Basin - the world's second-largest ecological haven after the Amazon, valued over $700 billion, could bolster these climate efforts.

Many countries have already initiated the Support Programme for the Development of the Green Economy in Central Africa, integrating mitigation and adaptation measures from their nationally determined contributions.

To drive future success, Central African nations need to pioneer innovative funding avenues to lure private-sector investment. The report recommends redirecting private-sector climate finance towards low-risk, high-yield sectors, and broadening capital access for small and medium-sized enterprises (SMEs), especially those helmed by women and the youth.

Fibre2Fashion News Desk (DP)