Sub-Saharan Africa’s economy continues to demonstrate resilience, with growth projected to reach 3.8 percent in 2025, up from 3.5 percent in 2024. The modest acceleration is driven by easing inflationary pressures and a gradual recovery in investment despite ongoing global economic uncertainty. The number of countries facing double-digit inflation has dropped significantly—from twenty-three in late 2022 to ten by mid-2025—indicating progress in stabilizing prices. However, challenges remain, including trade policy volatility, weakening investor confidence, and reduced external financing, particularly in official development assistance. External debt service has more than doubled over the past decade, and nearly half of Sub-Saharan African nations are now in or at high risk of debt distress.
While the region’s economic growth is improving, it remains too slow to meaningfully reduce extreme poverty or meet the growing demand for jobs among its rapidly expanding population. Sub-Saharan Africa is undergoing the world’s fastest demographic transformation, and creating enough high-quality employment opportunities is an urgent priority. This concern is central to the 32nd edition of Africa’s Pulse, the World Bank’s biannual regional update, which this year focuses on “Pathways to Job Creation in Africa.”
According to Andrew Dabalen, World Bank Chief Economist for the Africa Region, the working-age population in Sub-Saharan Africa will grow by over 600 million people in the next 25 years. Yet only about one-quarter of new entrants to the labor market currently secure wage-paying jobs. To address this challenge, the region must foster a structural shift toward medium and large enterprises capable of generating wage employment at scale.
The report recommends several key policy priorities to accelerate job creation and sustain growth. These include reducing the cost of doing business, improving infrastructure in energy, digital connectivity, and transport, and investing in education and skills development. Strengthening institutions and governance is also essential to ensure economic stability, combat corruption, and create a predictable environment that encourages private investment.
The World Bank highlights the potential of sectors such as agribusiness, mining, tourism, healthcare, and housing to drive employment growth. In tourism, for example, each job created generates an additional 1.5 jobs in related industries. With sound policies, targeted investments, and a stronger private sector, Sub-Saharan Africa can unlock its vast employment potential, turning its demographic growth into a powerful engine for inclusive and sustainable economic development.
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