The continent recorded an estimated average GDP growth of 4.4 per cent in 2025, with 22 economies posting rates above 5 per cent.
Africa is projected to grow at 4.2 per cent in 2026 before rebounding to 4.4 per cent in 2027, the African Development Bank’s flagship report said.
Central Africa is expected to see growth rising to 3.8 per cent in 2026 from 3.6 per cent in 2025.
East Africa is expected to remain the continent’s fastest-growing region, though growth is projected to ease from 6.6 per cent in 2025 to 5.9 per cent in 2026.
Central Africa is expected to see growth rising to 3.8 per cent in 2026 from 3.6 per cent in 2025, buoyed by sustained high oil prices, the 2026 African Economic Outlook released recently at AfDB Group’s annual meetings in Brazzaville said.
East Africa is expected to remain the continent’s fastest-growing region, though growth is projected to ease from 6.6 per cent in 2025 to 5.9 per cent in 2026, as rising energy and import costs linked to Middle East disruptions take their toll. A rebound to 6.4 per cent is anticipated in 2027.
West Africa is forecast to remain relatively stable, with growth projected at 4.7 per cent in 2026, broadly in line with the estimated 4.8 per cent for 2025, supported by strong agricultural production and continued infrastructure investment.
North Africa is expected to grow at 4 per cent in 2026 compared to 4.4 per cent in 2025, reflecting weaker tourism demand from Gulf states, and the broader effects of global supply chain disruptions.
Growth in Southern Africa is expected to remain subdued at 2.1 per cent in 2026, from 2.3 per cent in 2025, weighed down by weaker mining and agricultural output and higher energy costs.
The projections and findings in the report underscore the continent’s continued resilience in the face of geopolitical tensions, tighter global financial conditions and supply chain disruptions.
The report notes that sustaining faster, inclusive and more resilient growth would require a decisive shift towards mobilising and deploying capital at scale. This includes strengthening domestic resource mobilisation, deepening and integrating financial systems, expanding capital markets and enhancing African agency in global finance.
Downside risks to the outlook remain significant. Inflation in the continent is projected to stay elevated at 10.4 per cent in 2026, posing continued challenges to macroeconomic stability and growth prospects.
Persistent geopolitical tensions, alongside prolonged global supply chain and energy disruptions, could further strain fiscal and external balances through higher energy and fertiliser prices.
In addition, financial market volatility and exchange rate depreciations risk amplifying debt and fiscal vulnerabilities, while rising global fragmentation may intensify pressures on external financing flows, including official development assistance.
The report calls for accelerated efforts to strengthen Africa’s financial systems through pan-African banks, integrated capital markets and innovative instruments like climate and Islamic finance.
It also highlights the role of the African Credit Rating Agency, launched in January 2026, as an important tool for addressing perceived biases in sovereign risk assessments.
Fibre2Fashion News Desk (DS)
