Africa’s economic growth is set to edge upwards in 2023 and 2024 amid tighter global monetary policy and the fallout from Russia’s invasion of Ukraine, but South Africa’s will plummet, the African Development Bank (AfDB) said.

The continent’s GDP growth is projected to rise to 4% this year and 4.3% in 2024 after a 3.8% expansion last year, the AfDB said in its annual African Economic Outlook on Wednesday.

However, GDP growth was still some way below the 4.8% expansion in 2021, the lender found.

AfDB President Akinwumi Adesina called for “cautious optimism” in the face of risks including high global interest rates and a strong dollar while the continuing war in Ukraine could worsen food insecurity and push up prices further.

Growth in the continent’s southern region is projected to slow sharply to 1.6% this year from 2.7% last year, dragged down by poor economic performance in South Africa, where scheduled power cuts of up to 10 hours a day have stymied the economy.