African Development Bank projects 4.2% growth for 2026

African economies are projected to grow at 4.2 percent this year, moderating from 4.4 percent in 2025, before rebounding to 4.4 percent in 2027, according to the African Development Bank’s annual economic outlook. The report, launched Tuesday at the bank’s annual meetings in Brazzaville, Congo, attributes the slight slowdown primarily to geopolitical tensions and supply chain disruptions stemming from conflict in the Middle East, which are pushing up global energy and food prices.

Despite these headwinds, Africa remains among the world’s fastest-growing regions, outpacing Europe and Latin America. The continent’s resilience is supported by improved macroeconomic management, stronger agricultural output, elevated commodity prices, and ongoing structural reforms. Bank President Sidi Ould Tah noted that 12 of the world’s 20 fastest-growing economies are in Africa.

However, significant risks persist. Average inflation across Africa is projected to stay elevated at 10.4 percent this year, posing challenges to macroeconomic stability. The bank cautioned that prolonged supply chain disruptions and higher energy and fertilizer prices could further strain fiscal and external balances,...