Africa’s economy is projected to expand faster than the global average through 2027, supported by infrastructure investment, stronger domestic demand and expanding services sectors, according to a new report by the African Export-Import Bank (Afreximbank).
The continent’s real gross domestic product is expected to grow about 4.4% in 2026 and 4.5% in 2027, up from an estimated 4.3% in 2025, the lender said in its February report on macroeconomic developments. Global growth is forecast to remain broadly stable at around 3.3% during the same period. The outlook reflects improving macroeconomic stability across many African economies, alongside renewed investment in infrastructure, energy, mining and digital services, according to the bank’s research unit.
The report notes that growth dynamics remain heterogeneous, citing commodity producers benefiting from relatively firm prices and expanded production capacity, while more diversified economies are seeing recovery in sectors such as finance, information technology and tourism.
Inflation pressures across Africa have begun to ease following the surge triggered by pandemic disruptions and global commodity shocks, helped by lower energy and food prices and tighter monetary policy in several economies.
However, price pressures remain elevated in many countries, particularly those reliant on imports and those that experienced sharp currency depreciation in recent years. Food inflation linked to climate variability and structural agricultural constraints continues to weigh on household purchasing power.
Debt servicing costs remain one of the biggest challenges facing African economies. The report said higher global interest rates and rising reliance on non-concessional external borrowing have pushed debt service burdens above prudent levels in several frontier markets, limiting governments’ ability to fund social spending and infrastructure.
The “higher-for-longer” global interest rate environment is also increasing refinancing risks and restricting fiscal policy flexibility, the report said. Despite rising global trade tensions, Africa’s direct exposure to tariff disputes between major economies is relatively limited. Only a small number of African countries export more than 5% of their goods to the United States, the report noted.
Still, indirect effects through commodity price volatility and slower global trade growth could affect export revenues for many countries. The bank said supply chain realignments and growing demand for critical minerals, agribusiness products and light manufacturing could create opportunities for African economies to attract new investment.
Regional integration under the African Continental Free Trade Area may also help reduce dependence on traditional export markets and boost intra-African trade, which remains significantly lower than levels seen in other regions.
Overall, the report describes Africa’s outlook as one of “cautious optimism,” with gradual economic stabilization providing a window for governments to pursue structural reforms aimed at diversifying exports, strengthening fiscal buffers and improving productivity.
