Africa’s economies are projected to grow 4.2% in 2026, slightly below the estimated 4.4% expansion recorded in 2025, before rebounding to 4.4% in 2027, according to the African Development Bank’s (AfDB) 2026 African Economic Outlook released at the bank’s annual meetings in Brazzaville.

The AfDB said the continent continued to demonstrate resilience despite geopolitical tensions, tighter global financial conditions and supply-chain disruptions, supported by improved macroeconomic management, stronger agricultural output, elevated commodity prices and ongoing structural reforms.

The report said Africa remained among the world’s fastest-growing regions, with 22 countries expected to record economic growth above 5% in 2025.

Published under the theme “Mobilizing Africa’s Development Financing at Scale in a Fragmented World,” the report argued that sustaining stronger and more resilient growth would require significantly higher mobilisation of domestic and international capital.

The AfDB said priorities included improving domestic resource mobilisation, deepening capital markets, integrating African financial systems and strengthening the continent’s influence within global finance structures.

Mixed Regional Outlook 

• East Africa is expected to remain the continent’s fastest-growing region, though growth is projected to ease from 6.6% in 2025 to 5.9% in 2026, as rising energy and import costs linked to Middle East disruptions take their toll. A rebound to 6.4% is anticipated in 2027.  
• West Africa is forecast to remain relatively stable, with growth projected at 4.7% in 2026, broadly in line with the estimated 4.8% for 2025, supported by strong agricultural production and continued infrastructure investment. 
• North Africa is expected to grow at 4.0% in 2026 compared to 4.4% in 2025, reflecting weaker tourism demand from Gulf states, and the broader effects of global supply chain disruptions. 
• Central Africa is one of the few regions projected to see an uptick, with growth rising marginally to 3.8% in 2026 from 3.6% in 2025, buoyed by sustained high oil prices. 
• Growth in Southern Africa is expected to remain subdued at 2.1% in 2026, from 2.3% in 2025, weighed down by weaker mining and agricultural output and higher energy costs. 

The report warned that inflation would likely remain elevated at 10.4% in 2026, posing continued risks to macroeconomic stability and growth prospects across the continent.

The AfDB also warned that prolonged geopolitical tensions, energy-market disruptions, exchange-rate volatility and tightening global financial conditions could worsen debt vulnerabilities and strain fiscal balances across African economies.

At the centre of the report was Africa’s widening development-financing gap, which the bank estimated at more than $1.3 trillion annually to meet the Sustainable Development Goals.

The AfDB argued that Africa could potentially unlock as much as $1.43 trillion annually through improved tax collection, stronger public investment efficiency, deeper capital markets, public-private partnerships, diaspora financing and better use of natural capital.

The report estimated Africa could generate an additional $469bn annually through stronger tax and non-tax revenue mobilisation, while improved public investment efficiency could deliver roughly $299bn in savings.

Institutional investors across Africa, including pension funds, insurers and sovereign wealth funds, currently manage around $4 trillion in assets, although less than 2.7% is allocated to infrastructure and productive sectors on the continent.

The AfDB also highlighted the role of the newly launched African Credit Rating Agency, introduced in January 2026, as a mechanism to counter perceived bias in sovereign risk assessments affecting African economies.

Africa’s stock market capitalisation reached $1.2 trillion in 2024, nearly six times higher than two decades earlier, although activity remains concentrated in South Africa, Egypt, Nigeria and Morocco.