The CPIA Africa report highlights policy trends, best practices, and key changes in Sub-Saharan Africa, following the World Bank's annual Country Policy and Institutional Assessment (CPIA). The analysis is designed to assess the elements of policies and institutional arrangements within a country's control for promoting sustainable growth and poverty reduction.

Discussion is limited to countries eligible for financing from the International Development Association (IDA), the part of the World Bank that supports the world’s poorest countries. With government investment and spending in Sub-Saharan Africa currently constrained, there is an urgent need for the private sector to accelerate.

This year's CPIA Africa report focuses on reforms across policy areas that bolster private sector growth and highlights the policy trends that have been instrumental in supporting business development in 2023. The CPIA 2024 report for Africa underscores several key developments. First, the region has made significant strides in economic management and policies for social inclusion and equity, surpassing the global IDA average. However, the slower improvement in the governance cluster remains a concern.

Second, the region has implemented reforms to enhance resilience to international economic shocks, particularly in central bank independence and transparency. Nonetheless, exchange rate pressures have posed challenges for countries actively managing exchange rate fluctuations. Third, the growing debt service obligations in the region limit the amount of resources available for public-sector investment.

Public spending is especially constrained in countries with heightened concerns about external debt distress with some countries resorting to increased arrears and monetary financing. Finally, the report highlights two major trends offering hope for private sector growth: digital technology and increased intraregional trade. These trends have the potential to be transformational and provide significant opportunities for increased competition, FDI inflows, and economic diversification.

Report by the World Bank