The African Development Bank (AfDB), says Africa is demonstrating resilience in the face of global economic shocks. Africa’s economy is expected to grow from 3.1% in 2023 to 3.7% in 2024 and further to 4.3% in 2025.
Despite challenges such as rising global interest rates, climate-related disruptions, and volatile commodity prices, fifteen African countries, including Niger, Senegal, Côte d’Ivoire, and Ethiopia posted GDP growth above 5% in 2023.
AfDB attributes this growth not to chance, but to strong domestic demand, increased public investment, and sustained progress in economic reforms. The African Continental Free Trade Area (AfCFTA) has also played a key role in driving intra-regional trade and investment.
However, the Bank warns that the recovery remains fragile because inflation across Africa averaged 17.8% in 2023, driven largely by surging food and fuel prices.
It said public debt levels remain a concern, with many countries dedicating a significant share of their budgets to debt servicing. Also, currency depreciation in several economies has further increased the cost of imports, placing additional strain on national finances.
While some regions are on a growth trajectory, others are still grappling with persistent challenges such as armed conflicts, supply chain disruptions, and climate shocks. For example, severe drought in Southern Africa has negatively impacted agriculture and energy generation.
To maintain momentum, AfDB urges African governments to prioritize long-term structural reforms, invest in climate-resilient infrastructure, strengthen governance, and manage debt sustainably.
The Bank also calls for reduced reliance on foreign aid and imports by boosting local production and expanding intra-African trade.
While cautious, the Bank’s outlook remains optimistic. Africa’s projected growth through 2026 is expected to outpace most global regions.
The bank said, with smart policies, investment in human capital, and deeper regional cooperation, the continent can build a more stable and self-reliant economic future.
