Africa’s economic growth is showing resilience, despite significant disparities persist across the continent’s sub-regions, according to the United Nations’ World Economic Situation and Prospects 2026 report.
The report said regional GDP growth is projected to rise to 4.0 percent in 2026 and 4.1 percent in 2027, gradually accelerating from 3.5 percent in 2024 and an estimated 3.9 percent in 2025.
The UN attributed this uptick to improved macroeconomic stability in several large economies, which is supporting stronger investment and consumer spending.
The report noted, however, that divergent commodity prices and high debt-servicing costs continue to shape uneven growth trajectories.
It said while inflation has moderated from post-pandemic peaks, it remains elevated in many countries, limiting scope for monetary policy easing.
At the same time, it said reduced official development assistance and rising trade barriers present additional challenges to growth.
The UN report indicated that North Africa experienced an estimated 4.3 percent GDP growth in 2025, up from 3.3 percent in 2024, led by improved balance-of-payments conditions and stable exchange rates.
Egypt and Tunisia, in particular, have benefited from successful debt repayments and a revival in tourism. Growth in the subregion is expected to ease slightly to 4.1 percent in 2026, with Egypt projected to expand by 4.5 per cent, supported by economic reforms aimed at attracting foreign investment.
In East Africa, growth remains above the continental average despite a small decline from 5.6 per cent in 2024 to 5.4 per cent in 2025.
The sub-region is projected to grow by 5.8 percent in 2026, driven mainly by Ethiopia and Kenya, which are forecast to expand by 6.3 and 5.1 percent, respectively.
Regional integration and renewable energy projects, including the Grand Ethiopian Renaissance Dam, are bolstering prospects, though debt distress and ongoing conflicts in countries like South Sudan remain key risks.
West Africa recorded 4.6 percent growth in 2025, slightly slowing to 4.4 per cent in 2026, largely supported by Nigeria’s economic recovery, higher gold prices, and reforms in the oil sector.
Central Africa, however, continues to lag, with GDP growth estimated at 2.8 per cent in 2025 and 3.0 percent projected for 2026, driven mainly by commodity-dependent economies such as Chad, Congo, and the Democratic Republic of the Congo. Conflict and governance challenges continue to constrain broader economic gains, the report indicated.
It added that Southern Africa remains the slowest-growing sub-region, with GDP expansion of 1.6 percent in 2025 and 2.0 percent expected in 2026, weighed down by structural challenges in South Africa, declining diamond prices in Botswana, and trade shocks affecting Lesotho’s apparel industry.
Inflationary pressures are diverging, with some countries maintaining tight monetary policies while others, including South Africa and Namibia, have begun easing rates.
Despite lower global grain prices and improved exchange rate stability, the report pointed out that food inflation remains a challenge across the continent, exceeding 10 percent in countries such as Angola, Ghana, Nigeria, Ethiopia, and Rwanda as of September 2025.
According to the UN, this highlights persistent structural cost-of-living pressures, even as overall economic growth continues to show resilience.
By Ernest Kofi Adu