Sub-Saharan Africa’s economy is expected to maintain steady growth despite ongoing geopolitical tensions, climate-related disruptions and financial pressures, according to the latest Africa Economic Update released by the World Bank.
The report projects regional economic growth to increase from 4.1 per cent in 2025 to 4.3 per cent in 2026, surpassing earlier forecasts.
The World Bank attributed the improved outlook to stronger domestic demand, improved macroeconomic management and increased investments linked to digital technologies and the global energy transition.
Chief Economist for the Africa Region, Andrew Dabalen, said the resilience demonstrated by countries across the continent reflects years of economic reforms and improved policy implementation.
He noted that countries including Nigeria, Angola, Ethiopia and Zambia recorded improved growth forecasts.
However, the report warned that growth remains insufficient to significantly reduce poverty or generate the number of jobs required by the region’s rapidly expanding population.
The World Bank also identified artificial intelligence as a potential driver of productivity and economic transformation in Africa, particularly through applications in agriculture, education, healthcare, finance and public administration.
It urged governments to invest in digital infrastructure, electricity, connectivity, skills development and data systems to build AI-ready economies and create sustainable employment opportunities.
