AfDB says Africa’s economic growth outlook remains strong as GDP stabilises, FDI surges and 12 of top 20 fastest-growing economies emerge

The President of the African Development Bank Group (AfDB), Sidi Ould Tah, has said that 12 of the world’s 20 fastest-growing economies are currently in Africa, underscoring what he described as the continent’s growing economic resilience despite global uncertainty.

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Tah made the remark during the inauguration of the 2026 African Economic Outlook report at the AfDB Annual Meetings taking place in Brazzaville.

According to him, African economies have continued to show strong performance in the face of geopolitical tensions, global trade disruptions and declining development assistance, describing the trend as a sign of sustained economic stability across the continent.

The report indicates that Africa’s real Gross Domestic Product growth stabilised at 4.3 per cent in 2026 and is projected to rise to 4.5 per cent in 2027, reflecting what Tah described as a steady and encouraging economic trajectory.

He further noted that GDP per capita growth across Africa has improved significantly, rising from 0.9 per cent in 2023 to 1.9 per cent in 2025, signalling gradual gains in living standards despite persistent structural challenges.

Foreign direct investment also recorded a major rebound in 2024, increasing by 75 per cent to 97 billion dollars, while remittance inflows rose by 14 per cent within the same period to 186 billion dollars, making them one of the continent’s most important external financing sources.

Inflation across Africa, however, declined from 21.8 per cent in 2024 to 13.6 per cent in 2025, although the AfDB cautioned that new pressures are emerging due to rising energy and import costs.

Despite the positive indicators, Tah warned that structural constraints and financing gaps continue to limit long-term economic transformation across several African economies.

He urged governments to deepen investment-driven growth strategies, strengthen human capital development, and expand infrastructure financing to sustain momentum.

The AfDB president also called for deeper financial reforms aimed at reducing dependence on external aid while strengthening Africa’s economic sovereignty and resilience.

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Tah emphasised that Africa must fully harness its demographic advantages and increasing investment inflows to secure long-term, inclusive economic growth across the continent.