World Bank revises Africa’s growth upwards to 4.3%

The World Bank has increased its projected growth for Sub-Saharan Africa in 2026 to 4.3 percent, up from its April forecast of 4.0 percent. The revision, released in the Africa Economic Update, comes ahead of the World Bank Group and International Monetary Fund annual meetings in Bangkok, Thailand. Despite challenges such as geopolitical tensions, climate shocks, declining development assistance, and fiscal pressures, the region's growth has remained robust.

The median inflation rate is expected to rise from 3.7 percent in 2025 to 5.5 percent in 2026, driven by higher global fuel, fertiliser, and food prices. Public debt has stabilized at around 57 percent of GDP, though high debt-service costs continue to limit spending on essential services. While growth forecasts have been upgraded for nearly three-quarters of countries in the region, including Angola, Ethiopia, Nigeria, and Zambia, the report warns that growth remains insufficient to significantly reduce extreme poverty or create adequate employment opportunities.

The World Bank identifies affordable, locally adapted small-scale Artificial Intelligence (AI) applications as a key opportunity for the region, particularly for sectors such as education, agriculture, health, finance, logistics, and public administration. Realizing these benefits would require investments in infrastructure, digital skills, quality data, and effective governance.

The report calls for stronger institutions, technical capacity, and regional cooperation, including through the African Union's AI strategy and the African Continental Free Trade Area.