African Economic Outlook 2026

The African Economic Outlook 2026 examines how Africa can mobilise development financing at scale in a fragmented global environment to accelerate structural transformation. While the continent remains one of the world’s fastest‑growing regions, with GDP growth estimated at 4.4% in 2025 and projected at about 4.2% in 2026, this performance masks persistent structural weaknesses, including high debt, limited fiscal space, and vulnerability to external shocks. Progress in transforming African economies toward diversified, higher‑value sectors remains slow, and inequality continues to be a major constraint on inclusive development. The report emphasises that achieving sustained growth of 7% or more, which is necessary for job creation and poverty reduction, will require significantly increased investment and better use of domestic resources. It stresses that closing Africa’s development financing gap will depend on stronger domestic resource mobilisation, deeper financial markets, expanded capital investment, and greater coordination in policy and global financial systems, without which the continent risks falling short of its long‑term development goals.

Abstract based on original source.