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Economic outlook for Africa in 2026

Economic outlook for Africa in 2026
Category: Analysis
Date: December 31, 2025
Author: Admin

Major international and African financial institutions are forecasting an economic growth rate for sub-Saharan Africa in 2026 of around 4.1% to 4.3%.

Growth by Design

Compared with 2024 and 2025, Africa’s economic growth is expected to strengthen in 2026. Despite the prevailing gloom in international trade, the continent’s economic outlook shows an acceleration of growth and an improvement in macroeconomic fundamentals. This is not due to the international context or to luck, but rather to the sustained efforts of several leaders who have understood that local transformation—adding value to agricultural and mineral products—is more beneficial to African economies than the simple export of raw materials.

Growth Estimates for Africa

Growth forecasts are almost identical from one institution to another. The World Bank anticipates an acceleration that could reach 4.4% for sub-Saharan Africa, while the African Development Bank (AfDB) projects real GDP growth for Africa at 4.3%. The IMF, for its part, states that growth in sub-Saharan Africa should rebound slightly in 2026 to reach between 4.1% and 4.3%.

According to Africa Digest, in 2026, among the 15 fastest-growing countries in the world, eleven will be in Africa. Many of these countries are developing nations, but this means that proactive government action has been a catalyst for this growth.

Although rankings may vary depending on the source, it is estimated that in 2026, the ten largest economies in Africa will be: South Africa, Egypt, Nigeria, Algeria, Morocco, Kenya, Ethiopia, Ghana, Côte d’Ivoire, and Angola. Increasingly, whether in West, Southern, East, or North Africa, there is a growing determination to assert economic sovereignty, with various governments making meaningful decisions to lay real foundations for improving the general well-being of their populations.

Findings

The mobilisation of domestic tax revenues remains a challenge for everyone, but it can be observed that several countries have put in place mechanisms to monitor the collection of these tax revenues with much greater determination, as seen in Senegal, Côte d’Ivoire, Gabon, Burkina Faso, Togo, Niger, and elsewhere on the continent.

Strengthened debt management, another challenge, has been addressed with increased government commitment. In Senegal, despite the discovery of a “hidden debt”, the Sonko government has implemented concrete measures to tackle this heavy burden.

It goes without saying that all of this has been accompanied by the acceleration of structural reforms. As if this directive was shared simultaneously, these reforms are affecting both Namibia and Botswana in southern Africa, as well as East Africa with Kenya, West Africa with not only the AES countries but also several ECOWAS member states, and so on.

The Persistence of Ongoing Challenges

Several factors could impact these 2026 forecasts for Africa. Firstly, there is the global political and economic climate, with uncertainties linked to American policy undermining multilateralism, as well as the volatility of commodity prices.

Trade tensions related to Trumpist policies could, in 2026, affect global trade and thus slow these African economic growth forecasts. This has already been observed with the complete halt of USAID operations on the continent, which has severely affected the social environment in certain countries, durably disrupting the functioning of some health and social structures.

Non-Uniform African Growth

In the CEMAC area, in Central Africa, economic growth forecasts are estimated at around 3.4%, driven mainly by non-oil activities. Meanwhile, in the ECOWAS and AES zones in West Africa, particularly high rates are expected, such as in Niger (11.5%), Senegal (6.0%), Burkina Faso (6.6%), Guinea (10.5%), Côte d’Ivoire (6.4%), and Niger (6.7%). All these figures remain forecasts which will be tested by the reality on the ground in 2026.

In East Africa, similarly interesting growth rates are anticipated: Rwanda at 7.5%, Uganda at 7.6%, and Ethiopia at 7.1%.

These economic growth rates are the envy of other countries and continents. Here too, the major challenge remains ensuring that the majority of the population benefits from the dividends of this economic growth.

The continued implementation of the AfCFTA, the African Continental Free Trade Area, continues to boost intra-African trade. Foreign investment remains strong, particularly from China and India, with major contracts in railway and port infrastructure, among others.

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