AfDB Reports that Africa Economy Maintains Growth Momentum Despite Global Pressures

Africa’s economies remain resilient in the face of mounting global and regional challenges, according to a new report by the African Development Bank Group.

The Bank’s 2026 Africa Macroeconomic Performance and Outlook (MEO), released on 30 March at its Abidjan headquarters, projects the continent’s growth will stabilise at 4.3% in 2026, rising to 4.5% in 2027. The report urges governments to strengthen fiscal discipline and deepen regional integration to cushion external shocks, including geopolitical tensions and the ongoing Middle East crisis.

Africa outperformed the global average in 2025, with real GDP growth reaching 4.2%, up from 3.1% in 2024 and above the global average of 3.1%. Growth was broadly distributed, exceeding 5% in 22 countries and surpassing 7% in six.

East Africa remained the fastest-growing region, expanding by 6.4%, driven by strong performances in Ethiopia (9.8%), Rwanda (7.5%), and Uganda (6.4%).

The report highlights easing inflation, improved macroeconomic management, and favourable agricultural conditions as key drivers of growth. Inflation fell sharply to an estimated 13.6% in 2025 from 21.8% in 2024, with further declines expected over the next two years.

External financial flows also improved. Foreign direct investment surged by more than 75% in 2024 to $97 billion, while remittances rose 14% to $104.6 billion, making them the largest source of external non-debt financing, ahead of portfolio investment.

However, the report notes that GDP per capita growth—rising from 0.9% in 2023 to 1.9% in 2025—remains insufficient to drive rapid poverty reduction.

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