- The continent recorded a projected average GDP growth of 4.4 percent in 2025, with 22 economies recording rates above 5 percent.
- Despite rising geopolitical tensions and global supply shocks, Africa's growth rate is projected to be 4.2 percent in 2026.
- Buoyed by sustained high oil prices, Central Africa's growth rate is expected to rise from 3.6 percent in 2025 to 3.8 percent in 2026.
Africa's economies are projected to grow by 4.2 percent in 2026, before slowing slightly to 4.4 percent in 2025 and rising to 4.4 percent in 2027. The findings of the 2026 African Economic Outlook, released at the African Development Bank Group's annual meeting in Brazzaville on Tuesday, underline the continent's continued resilience in the face of geopolitical tensions, tight global financial conditions and supply chain disruptions. obstacle.
According to the Bank's flagship report, Africa's growth to 2025 was supported by better macroeconomic management, stronger agricultural production, higher commodity prices and ongoing structural reforms. The continent remains one of the fastest growing regions in the world, with 22 countries projected to have growth rates above 5 percent in 2025.
The report, published under the theme Mobilizing Africa's development financing at scale in a fragmented world, says sustaining faster, inclusive and more resilient growth will require a decisive shift in how capital is mobilized and deployed at scale. This includes strengthening domestic resource mobilization, deepening and integrating financial systems, expanding capital markets, and enhancing African agency in global finance.
Mixed regional outlook
- East Africa It is expected to remain the continent's fastest-growing region, although growth is projected to moderate. From 6.6 percent in 2025 to 5.9 percent in 2026 due to rising energy and import costs. Disruptions related to the Middle East have an impact. a rebound for It is estimated to be 6.4 percent in 2027.
- West Africa Growth is projected to remain relatively stable 4.7 percent in 2026Roughly in line with the 4.8 percent projected for 2025, supported by strong agricultural production and continued infrastructure investment.
- North Africa expected to increase 4.0 percent in 2026 compared to 4.4 percent in 2025Weak tourism demand from Gulf countries reflects the wider effects of global supply chain disruptions.
- Central Africa It is one of the few areas where the growth rate is projected to increase marginally 3.6 percent in 2025 to 3.8 percent in 2026Buoyed by continued high oil prices.
- development in southern africa is expected to remain soft Growth declined to 2.1 percent in 2026 from 2.3 percent in 2025 due to weak mining and agricultural output and higher energy costs.
Downside risks to the outlook remain significant. Inflation is expected to remain high 10.4 percent in 2026posing continuing challenges to macroeconomic stability and growth prospects. Prolonged global supply chain and energy disruptions, as well as persistent geopolitical tensions, could further impact fiscal and external balances through higher energy and fertilizer prices. Furthermore, financial market instability and exchange rate depreciation risk exacerbating debt and fiscal vulnerabilities, while increasing global fragmentation could exert pressure on external financing flows, including official development assistance.
Closing Africa's financing gap
At the heart of the 2026 AEO report is a stark assessment of Africa's development financing shortfall: the continent faces an annual gap of more than $1.3 trillion to meet the Sustainable Development Goals. The African Development Bank attributes the deficit to low domestic resource mobilisation, weak financial intermediation and tightening external financing conditions.
However, he argues that the issue is not only of lack of resources, but also of deploying capital effectively.
With appropriate reforms, Africa can reach $1.43 trillion annually through better revenue collection, more efficient public investment, reduction of illicit financial flows and corruption, deeper capital markets, expanded public-private partnerships, diaspora financing and better use of natural capital.
Key opportunities identified include an estimated $469 billion in additional annual revenues from stronger tax and non-tax mobilization, as well as approximately $299 billion in potential savings from improved public investment efficiency. Public-private partnerships have been highlighted as a powerful lever, with each additional dollar of public investment being associated with approximately $1.40 in private investment.
Institutional investors, including pension funds, insurers and sovereign wealth funds, manage approximately $4 trillion of assets; Yet less than 2.7 percent has been allocated to infrastructure and productive sectors in Africa, underscoring significant untapped potential.
The report calls for accelerated efforts to strengthen Africa's financial systems through pan-African banks, integrated capital markets, and innovative tools such as climate and Islamic finance. It has a central pillar New African Financial Architecture for Development (NAFAD)Which aims to leverage over $4 trillion of assets within Africa's financial ecosystem.
The report also highlights the role of the African Credit Rating Agency, launched in January 2026, as an important tool to address perceived biases in sovereign risk assessments. While Africa's stock market capitalization is set to reach $1.2 trillion in 2024 – a nearly sixfold increase in two decades – activity remains concentrated in South Africa, Egypt, Nigeria and Morocco, pointing to the need for broader market integration.
The report further underlines the importance of taking forward continental initiatives, such as African Financing Stability MechanismTo ease liquidity pressures, strengthen financial stability and help African countries manage debt refinancing risks at lower costs.
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Source: AfDB/Press Release