By Redaction ARPS Media
Africa’s economy is expected to grow from 3.3% in 2024 to 3.9% in 2025, and reach 4% in 2026, according to the African Development Bank Group’s 2025 Economic Outlook report.
Despite some challenges, 21 African countries are likely to see growth above 5% in 2025. Ethiopia, Niger, Rwanda, and Senegal might even reach 7%, which is crucial for reducing poverty.
Growth will differ by region. East Africa is projected to grow the fastest at 5.9%, while West Africa is expected to grow by 4.3%. North Africa is expected to grow by 3.6%, Central Africa by 3.2%, and Southern Africa only by 2.2%. The continent also faces major issues like high inflation and increasing government interest payments.
The report points out that Africa can improve its economy by tapping $1.43 trillion in domestic resources through better efficiency. It emphasizes the importance of using its natural, human, financial, and business resources wisely. It also notes that Africa lost about $587 billion in capital outflows in 2022.
To address these issues, the report suggests key actions: improve governance, enhance tax collection using digital tools, and develop local currency bond markets. Overall, it highlights the need for strong economic policies and reforms to promote sustainable development.
Access Full Report at: African Economic Outlook 2025 | African Development Bank Group
