As the world faces global economic headwinds, a new report has projected that African economies could remain resilient amid these challenges. 

According to a report released by consulting firm AECOM, projected growth rates in African economies is expected to outpace the global average, reaching 3.7 percent in 2024 and 4.3 percent in 2025.

However, sustained long-term growth is still challenged by infrastructure gaps, climate change impacts and sociopolitical issues. 

Diversified Economies Poised For Growth

The report revealed that countries with diversified economies and strong governance are better positioned for growth in this year and 2025. 

"South Africa remains a top investment destination despite lower growth rates. The public and private sectors can enhance this perception by improving transparency, governance and investing in critical infrastructure projects," said Michell Bezuidenhout, newly appointed PCC Director.

The analysis added that Africa is becoming a global investment hotspot, particularly as countries diversify their economies and focus on decarbonisation, energy transition and infrastructure development. 

Growing Energy Potential 

The report highlighted that Africa could play a crucial role in catalyzing the ongoing energy transition, with its large deposits of minerals. 

"Africa holds a significant share of the world's natural resources such as cobalt, diamonds and platinum, which are critical for industries undergoing green transitions. There is also a growing recognition of Africa's vast renewable energy potential, which is drawing interest from investors focused on sustainable infrastructure," said the report, according to a press statement. 

Due to this potential, the continent is attracting significant foreign investment from emerging markets like China, India and the UAE, which are financing a substantial portion of infrastructure projects.

"There is definitely a shift in client demands toward more sustainable solutions. Foreign investments are growing and we need to tap into those opportunities," said Niel du Pisani, Associate Director,  Cost Management, Africa.