{"id":9113,"date":"2026-04-04T06:52:16","date_gmt":"2026-04-04T06:52:16","guid":{"rendered":"https:\/\/eandelmagazine.com\/eandelmagazine\/?p=9113"},"modified":"2026-04-04T06:53:41","modified_gmt":"2026-04-04T06:53:41","slug":"afdb-reports-that-africa-economy-maintains-growth-momentum-despite-global-pressures","status":"publish","type":"post","link":"https:\/\/eandelmagazine.com\/eandelmagazine\/afdb-reports-that-africa-economy-maintains-growth-momentum-despite-global-pressures\/","title":{"rendered":"AfDB Reports that Africa Economy Maintains Growth Momentum Despite Global Pressures"},"content":{"rendered":"

Africa\u2019s economies remain resilient in the face of mounting global and regional challenges, according to a new report by the African Development Bank Group.<\/em><\/p>\n

The Bank\u2019s 2026 Africa Macroeconomic Performance and Outlook (MEO)<\/em>, released on 30 March at its Abidjan headquarters, projects the continent\u2019s 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.<\/p>\n

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.<\/p>\n

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%).<\/p>\n

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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.<\/p>\n

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.<\/p>\n

However, the report notes that GDP per capita growth\u2014rising from 0.9% in 2023 to 1.9% in 2025\u2014remains insufficient to drive rapid poverty reduction.<\/p>\n

Speaking at the launch, AfDB President Sidi Ould Tah warned that Africa faces a shifting global landscape marked by geopolitical fragmentation, trade tensions, and declining development finance. He said the Bank\u2019s strategic agenda is designed to address these emerging risks.<\/p>\n

Chief Economist Kevin Urama said the impact of the Middle East crisis is likely to be limited in the short term. He estimated that if the crisis extends beyond three months, Africa\u2019s growth in 2026 could dip by 0.2 percentage points.<\/p>\n

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An expert panel, including finance ministers from C\u00f4te d\u2019Ivoire, Liberia, Zimbabwe, and Lesotho, alongside a representative from the International Monetary Fund, called for sustained reforms. Priorities include boosting domestic revenue mobilisation, expanding local capital markets, and accelerating digital tax systems.<\/p>\n

The AfDB publishes the MEO twice yearly to complement its annual Africa Economic Outlook, providing policymakers and investors with timely economic analysis.<\/p>\n