Africa’s economic growth to slow slightly in 2026, AfDB report says

African economies are expected to grow by 4.2 percent in 2026, a slight decline from the projected 4.4 percent growth in 2025, according to the 2026 African Economic Outlook released on Tuesday this week during the African Development Bank (AfDB) Annual Meetings in Brazzaville.

The report forecasts that growth across the continent will rebound to 4.4 percent in 2027, underlining Africa’s continued resilience despite ongoing global economic challenges.

According to the AfDB, stronger agricultural output, rising commodity prices, improved macroeconomic management, and sustained economic reforms helped support growth in 2025.

The bank noted that Africa remained among the fastest-growing regions globally, with 22 countries expected to post growth rates above five percent this year.

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Published under the theme “Mobilising Africa’s Development Financing at Scale in a Fragmented World,” the report stresses the importance of strengthening domestic resource mobilisation, deepening financial systems, and expanding capital markets to maintain inclusive and sustainable growth.

“East Africa is projected to remain the continent’s fastest-growing region, although growth is expected to ease from 6.6 percent in 2025 to 5.9 percent in 2026 due to higher energy and import costs linked to disruptions in the Middle East,” the report said.
West Africa was forecast to maintain stable growth at 4.7 percent, supported by agriculture and infrastructure investments.

Meanwhile, North Africa’s growth is expected to slow slightly to 4.0 percent, while Central Africa is projected to improve marginally to 3.8 percent on the back of sustained oil prices. Southern Africa is expected to remain subdued, recording growth of 2.1 percent.

The report also highlighted key risks facing the continent, including persistent inflation, financial market volatility, and mounting debt pressures. Inflation across Africa is projected to average 10.4 percent in 2026.

A major concern remains Africa’s development financing gap, which is estimated at more than US$1.3 trillion annually to meet the Sustainable Development Goals (SDGs).

However, the AfDB said reforms aimed at improving tax collection, enhancing public investment efficiency, and developing capital markets could unlock up to US$1.43 trillion annually to support Africa’s long-term economic transformation.

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