Africa’s economy is expected to maintain a solid growth trajectory in 2026 and 2027 despite persistent global trade uncertainty, according to the World Economic Situation and Prospects 2026 Report.
Released on Thursday at the United Nations Conference Centre in Addis Ababa, the report projects that the continent’s economic expansion will accelerate to four percent in 2026 and 4.1 percent in 2027, up from 3.9 percent in 2025.
The outlook attributes this resilience to robust investment activity and sustained consumer spending in several of Africa’s largest economies.
Africa’s growth outlook remains broadly positive, the report noted, but it warned that momentum is being tested by falling official development assistance, mounting trade barriers and an increasingly uncertain global trade and financial climate.
East Africa is expected to post the strongest regional performance, with growth forecast to rise to 5.8 percent in 2026 from 5.4 percent in 2025, supported by solid gains in Ethiopia and Kenya, deeper regional integration and expanding renewable energy investment.
North Africa’s growth is forecast to ease slightly to 4.1 percent in 2026, down from 4.3 percent in 2025, supported by stronger balance of payments conditions and a continued rebound in tourism, the report said.
West Africa is projected to grow by 4.4 percent in 2026, edging down from 4.6 percent in 2025, supported by macroeconomic reforms in Nigeria and buoyant precious metal prices, the report said.
Central Africa’s economy is projected to grow by three percent in 2026, the report said, a rate that remains below the continental average but slightly above the 2.8 percent expected in 2025, reflecting the region’s continued reliance on extractive industries and the impact of conflict related disruptions.
Southern Africa’s growth is projected to rise modestly from 1.6 percent in 2025 to two percent in 2026, but the report cautioned that momentum will remain weak amid persistent structural constraints and increased exposure to higher United States tariffs.
However, the report warned that high debt servicing costs, constrained fiscal space and stubbornly elevated food inflation continue to undermine prospects for inclusive and sustainable development across the continent.
The report noted that African trade expanded in 2025, driven by strong exports of precious metals and agricultural commodities, as well as rising imports of transport equipment.
The continent’s exposure to global trade tensions remains limited, the report said, owing to diversified export partnerships and exemptions from higher US tariffs on key commodities such as crude oil and gold.
However, the report warned that the expiration of the African Growth and Opportunity Act and the introduction of new tariff measures pose fresh challenges for several exporters, particularly those in the apparel sector.
Progress in implementing the African Continental Free Trade Area has remained slow and uneven, the report added.
MG/jn/APA