Economic growth in Africa is expected to reach 4.0 percent in 2026 and 4.1 percent in 2027, after a 3.9 percent rise last year, according to a newly launched United Nations (UN) report.
In its report entitled the World Economic Situation and Prospect 2026 issued over the weekend, the UN said several African countries witnessed better macroeconomic stability.
However, high debt servicing costs, limited fiscal space and food inflation continue to weigh on the prospects for inclusive and sustainable development, the report said.
The report also highlighted the high trade tensions caused by global uncertainty and challenges related to AGOA (African Growth and Opportunity Act) and the implementation of the AfCFTA (African Continental Free Trade Area).
The report suggested that African growth will remain resilient, despite headwinds such as declining official development assistance, rising trade barriers and an uncertain global trade and financial environment.
It said East Africa is expected to record the highest growth, at 5.8 percent in 2026 (compared to 5.4% in 2025), driven by the performance of Ethiopia and Kenya and supported by regional integration and the expansion of renewable energy.
According to the report, North Africa is expected to register slightly to 4.1 percent growth rate in 2026, lower than 4.3 percent in 2025.
It noted that West Africa is also expected to slow to 4.4 percent in 2026 from 4.6 percent in 2025.
Central Africa is expected to report at 3.0 percent in 2026 from an estimated 2.8 percent in 2025 and Southern Africa will register a 2.0 percent economic growth rate in 2026 after 1.6 percent in 2025.
The report estimated that Africa’s average public debt-to-GDP ratio will reach 63 percent in 2025, with interest payments absorbing nearly 15 percent of public revenue.
At the same time, around 40 percent of African countries remain in a situation of over-indebtedness or are at high risk of becoming so, and several are seeking to restructure under the G20’s common framework.
The report also highlights that limited fiscal space continues to constrain development spending, even as reform and consolidation efforts are progressing in some of the larger economies.
MG/as/APA