The African economy is projected rise to 4.0 percent in 2026 and 4.1 percent in 2017, according to World Economic Situation and Prospects 2026 (WESP) report launched by the Economic Commission for Africa(ECA).
These projections, according to the report are up from 3.5 and 3.9 percent in 2024 and 2025, respectively. The report attributed “greater macroeconomic stability in several large economies, supporting investment and consumer spending” to the positive projections.
While launching the report, Stephen Karingi, Director, Macroeconomics, Finance and Governance Division at ECA was quoted, as saying Africa’s positive outlook would be challenged by “high debt-servicing costs, limited fiscal space and volatile commodity prices.”
The world economy is also expected to grow by 2.7 in 2026 in the face of subdued investment and limited fiscal space that would lead to persistent slower growth.
According to the report, the growth rate that each of the subregions of Africa is projected to see is quite uneven. East Africa leads by 5.8 percent in 2026 thanks to robust growth performance in Ethiopia and Kenya, while North Africa, West Africa,Central Africa and Southern Africa followed by 4.1, 4.4, 3.0 and 2.0 percent, respectively.
The report stated that debt remains a key challenge with 40 African countries in debt distress, and others seeking restructuring under the G20 framework. In 2025, Africa’s debt-to-GDP ratio was estimated at
63 percent “remaining well above pre-pandemic levels, with interest payments absorbing nearly 15 per cent of government revenue”, the report added.
