This is according to the 2026 Africa Macroeconomic Performance and Outlook report released by the African Development Bank Group (AfDB) on March 30 in Abidjan.
The report shows that Africa outperformed the global average in 2025, with real gross domestic product growth accelerating to 4.2%, up from 3.1% in 2024 and well above the 3.1% global average. Growth was broad‑based, exceeding 5% in 22 countries and surpassing 7% in six, supported by easing inflation, improved macroeconomic management and favourable agricultural conditions.
Africa’s real gross domestic product (GDP) growth is projected to stabilise at 4.3% in 2026 and rise further to 4.5% in 2027. In 2025, 12 of the world’s 20 fastest‑growing economies were in Africa. East Africa remained the continent’s fastest‑growing region, expanding by 6.4%, driven by strong performances in Ethiopia (9.8%), Rwanda (7.5%) and Uganda (6.4%).
GDP per capita growth increased to 1.9% in 2025, compared with 1.1% in 2024, though the report noted this remains insufficient for rapid poverty reduction.
Inflation continued to fall, averaging 13.6% in 2025, down from 21.8% in 2024, with further declines expected in 2026 and 2027. Foreign direct investment rebounded sharply in 2024, rising more than 75% to $97 billion, while remittances increased by over 14% to $104.6 billion, becoming the largest source of external non‑debt financing.
AfDB Group President Dr Sidi Ould Tah said Africa faces a changing global landscape marked by geopolitical fragmentation, trade tensions and declining development finance. He stressed that the Bank’s Four Cardinal Points agenda remains a crucial shield against these challenges.
He noted that the report’s projections were prepared before the latest Middle East crisis, with potential impacts now under assessment. AfDB Chief Economist Professor Kevin Urama said even if the crisis lasts beyond three months, Africa’s growth in 2026 would dip by only 0.2 percentage points, citing the continent’s proven capacity to absorb shocks.
An expert panel of African finance and planning ministers highlighted the importance of sustained reforms, domestic resource mobilisation and digitalisation to preserve momentum and weather future shocks.
–AfDB/ChannelAfrica–
