The African Development Bank (AfDB) has projected that Africa’s economic growth will moderate to 4.2 percent in 2026, down slightly from 4.4 percent in 2025, according to its latest African Economic Outlook report.
The report, released during the AfDB Annual Meetings in Brazzaville, highlights uneven growth across the continent, driven by differing economic structures, commodity dependence and fiscal conditions.
It shows that African Development Bank expects East Africa to remain the fastest-growing region, with projected expansion of 5.9 percent in 2026.
West Africa is forecast to grow by 4.7 percent, supported by stronger agricultural output, services activity and relative macroeconomic stability in several economies.
Central Africa is expected to record growth of 3.8 percent, underpinned largely by oil revenues, while Southern Africa is projected to lag at 2.1 percent due to weak mining performance and rising energy costs.
The report underscores persistent structural challenges, including limited industrialisation, weak infrastructure, and high exposure to commodity price fluctuations across many African economies.
AfDB officials said the continent must accelerate domestic resource mobilisation and deepen financial systems to reduce reliance on external borrowing and improve long-term resilience.
They also called for stronger integration of capital markets and improved mobilisation of diaspora funding and natural capital resources to finance development.
More Read
AfDB President Sidi Ould Tah said African countries must strengthen their role in global financial systems and sovereign risk assessments to ensure financing conditions better reflect the continent’s economic realities.
He stressed that Africa’s development strategy should focus on building stronger institutions, improving fiscal capacity and enhancing access to sustainable financing.
Economists say the outlook reflects a cautiously optimistic view of Africa’s growth trajectory, supported by demographic expansion and ongoing reforms, but tempered by global economic uncertainty and domestic structural constraints.
The report adds that despite steady growth projections, widening regional disparities remain a key concern for policymakers seeking more inclusive and balanced development across the continent.
