World Bank Sees Stronger African Growth

WASHINGTON, October 7, 2026 — Economic growth in Sub-Saharan Africa is projected to rise to 4.3 percent in 2026, up from 4.1 percent in 2025, despite geopolitical tensions, climate shocks, declining development assistance and fiscal pressures, the World Bank says.

The projection, contained in the latest edition of the World Bank Group’s Africa Economic Update, is 0.3 percentage points higher than its April 2026 forecast.

The Bank attributed the improved outlook to stronger domestic demand, improved macroeconomic resilience and investments linked to the global energy transition and digital technologies.

However, it warned that economic growth remains insufficient to substantially reduce extreme poverty or generate enough jobs for the region’s rapidly growing labor force.

“Despite a challenging global environment, economic activity in Sub-Saharan Africa continues to demonstrate remarkable resilience,” said Andrew Dabalen, World Bank Chief Economist for the Africa Region.

According to Dabalen, growth forecasts have been upgraded for nearly three-quarters of countries in the region, including Angola, Ethiopia, Nigeria and Zambia.

He said the next challenge is translating economic growth into more jobs and better opportunities, including through investments that prepare African economies to benefit from artificial intelligence.

The report projects median inflation in Sub-Saharan Africa to increase from 3.7 percent in 2025 to 5.5 percent in 2026 as higher global fuel, fertilizer and food prices reverse some recent gains.

Public debt has broadly stabilized at around 57 percent of GDP, but high debt-service costs continue to constrain spending on health, education and infrastructure, according to the report.

The World Bank also warned that geopolitical tensions, commodity-price increases, climate-related shocks and tighter financing conditions could further weaken economic and fiscal conditions across the region.

The report identifies artificial intelligence as a potential source of productivity and job growth, particularly through affordable applications in education, agriculture, health, finance, logistics and public administration.

However, it says realizing those benefits will require greater investment in reliable electricity, affordable internet connectivity, digital skills, quality data, computing infrastructure and effective governance.- Press release

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