African Development Bank Forecasts Slower African Economic Growth to 4.2%

 Africa's economic growth in 2026 will slow to 4.2%, down from 4.4% last year, amid the conflict in the Middle East, the African Development Bank (AfDB) said in a report presented at its annual meeting in Brazzaville.

"The impact of this crisis on growth and macroeconomic stability will depend on the duration of supply chain disruptions and their effect on global energy and fertilizer prices," the report said.

Additionally, according to the AfDB, 22 African countries recorded growth of more than 5% in 2025. East Africa will remain the fastest-growing region (slowing from 6.6% to 5.9% in 2026), while Southern Africa will be the weakest (2.1% in 2026). Inflation is expected to remain at 10.4%.

The financing gap to achieve sustainable development goals exceeds $1.3trillionperyear.Throughreforms,thecontinentcouldattractupto$1.43 trillion annually by improving revenue collection, developing capital markets, and fostering public-private partnerships.

In April, the AfDB, the African Union, and the UN Economic Commission for Africa reported that the escalation of the conflict in the Middle East could cause a sharp rise in the cost of living in Africa, as well as a significant slowdown in economic growth on the continent.