Africa’s long-bruised economy is expected to pick up pace, with growth projected to hit 4.0 per cent in 2026 and 4.1 per cent in 2027, according to the United Nations World Economic Situation and Prospects 2026 (WESP 2026) Report.
The Economic Commission for Africa (ECA) announced on Tuesday that the report was formally unveiled at its headquarters in Addis Ababa.
The forecast marks a gradual climb from 3.5 per cent growth in 2024 and 3.9 per cent in 2025, signalling that the continent may finally be finding its economic footing after years of stumbles.
The report attributes the rebound to improved macroeconomic stability in several of Africa’s heavyweight economies, a development that has begun to breathe life into investment flows and consumer spending.
“East Africa is expected to lead regional growth with a projected 5.8 per cent expansion in 2026, while North Africa’s growth is forecast at 4.1 per cent.
“West Africa is expected to grow by 4.4 per cent, Central Africa by 3.0 per cent, and Southern Africa by 2.0 per cent.
“Moreso, Africa’s average public debt-to-GDP ratio remains high at about 63 per cent in 2025, with interest payments absorbing nearly 15 per cent of government revenues, constraining development spending,” the report noted.
Despite the brighter outlook, the ECA warned that Africa’s debt burden remains a millstone around its neck, calling for renewed multilateral action, stronger global coordination and reforms of the international financial system to confront debt sustainability, climate shocks and development financing gaps.
The statement quoted Mr Stephen Karingi, Director of the Macroeconomics, Finance and Governance Division at ECA, as cautioning that the continent’s progress remains delicate.
“In spite the positive outlook, high debt-servicing costs, limited fiscal space and volatile commodity prices continue to weigh on Africa’s prospects for inclusive and sustainable growth.
“The global output is forecast to grow by 2.7 per cent in 2026, slightly below the 2.8 per cent estimated for 2025 and well under the pre-pandemic average of 3.2 per cent.
“This is amid subdued investment and limited fiscal space,” Karingi said.
Adding a global perspective, UN Secretary-General António Guterres said mounting economic, geopolitical and technological tensions were reshaping the world economy and deepening uncertainty.
“Many developing economies continue to struggle and progress towards the Sustainable Development Goals remains distant,” he said.
Also presenting the report, Mr Hopestone Chavula, Officer-in-Charge of ECA’s Macroeconomic Analysis Section, said Africa’s rebound remains lopsided and far from uniform.
“Africa’s growth recovery remains uneven across subregions.
“While East Africa continues to lead growth momentum, other parts of the continent are constrained by structural challenges and exposure to external shocks,” Chavula said.
