The World Bank has raised its 2026 growth forecast for Sub-Saharan Africa by 0.3 percentage points to 4.3 per cent, citing stronger domestic demand and improved economic resilience. 

The upward revision from its April forecast comes ahead of the 2026 World Bank Group (WBG) and International Monetary Fund (IMF) annual meetings scheduled for next week in Bangkok, Thailand. 

The World Bank, in its latest Africa Economic Update, said the region’s growth continued to gain momentum despite geopolitical tensions, climate shocks, declining development assistance and fiscal pressures, amid renewed global discussions on economic policy and financing. 

It projected the region’s median inflation rate to rise from 3.7 per cent in 2025 to 5.5 per cent in 2026, driven by higher global fuel, fertiliser and food prices. 

The report said public debt had broadly stabilised at about 57 per cent of Gross Domestic Product (GDP), although high debt-service costs continued to constrain spending on health, education and infrastructure. 

“The outlook is supported by improved macroeconomic resilience, stronger domestic demand, and investments linked to the global energy transition and digital technologies,” the report said. 

It said growth remained insufficient to significantly reduce extreme poverty, create adequate employment opportunities and absorb the region’s rapidly expanding youthful labour force. 

“Despite a challenging global environment, economic activity in Sub-Saharan Africa continues to demonstrate remarkable resilience, with growth forecasts upgraded for nearly three-quarters of countries in the region, including Angola, Ethiopia, Nigeria, and Zambia,” said Mr Andrew Dabalen, World Bank Chief Economist for the Africa Region. 

He said the gains reflected years of difficult reforms and improved economic management, adding that the next major challenge was to translate sustained growth into decent jobs and broader opportunities for citizens. 

“By investing in the foundations of an AI-ready economy, African countries can unlock productivity gains, spur innovation, and accelerate the structural transformation needed to raise living standards and reduce poverty,” he said. 

The report said declining development assistance would increase pressure on countries to mobilise domestic resources, deepen local capital markets and secure more sustainable financing. 

It said climate-related shocks, including a potential El Niño event, could disrupt agricultural production and worsen food insecurity, while tighter financing conditions could further constrain fiscal space. 

The Bank identified affordable, locally adapted small-scale Artificial Intelligence (AI) applications as a major opportunity for the region, particularly low-bandwidth tools for education, agriculture, health, finance, logistics and public administration. 

“Realising these benefits will require investments in reliable electricity, affordable connectivity, digital skills, quality data, compute infrastructure, and effective governance,” the World Bank stated. 

It called for stronger institutions, technical capacity, effective implementation and regional cooperation, including through the African Union’s continental AI strategy and the African Continental Free Trade Area (AfCFTA). 

The report said such cooperation could help scale AI-enabled solutions and support the creation of more and better jobs across the region. The World Bank has raised its 2026 growth forecast for Sub-Saharan Africa by 0.3 percentage points to 4.3 per cent, citing stronger domestic demand and improved economic resilience. 

The upward revision from its April forecast comes ahead of the 2026 World Bank Group (WBG) and International Monetary Fund (IMF) annual meetings scheduled for next week in Bangkok, Thailand. 

The World Bank, in its latest Africa Economic Update, said the region’s growth continued to gain momentum despite geopolitical tensions, climate shocks, declining development assistance and fiscal pressures, amid renewed global discussions on economic policy and financing. 

It projected the region’s median inflation rate to rise from 3.7 per cent in 2025 to 5.5 per cent in 2026, driven by higher global fuel, fertiliser and food prices. 

The report said public debt had broadly stabilised at about 57 per cent of Gross Domestic Product (GDP), although high debt-service costs continued to constrain spending on health, education and infrastructure. 

“The outlook is supported by improved macroeconomic resilience, stronger domestic demand, and investments linked to the global energy transition and digital technologies,” the report said. 

It said growth remained insufficient to significantly reduce extreme poverty, create adequate employment opportunities and absorb the region’s rapidly expanding youthful labour force. 

“Despite a challenging global environment, economic activity in Sub-Saharan Africa continues to demonstrate remarkable resilience, with growth forecasts upgraded for nearly three-quarters of countries in the region, including Angola, Ethiopia, Nigeria, and Zambia,” said Mr Andrew Dabalen, World Bank Chief Economist for the Africa Region. 

He said the gains reflected years of difficult reforms and improved economic management, adding that the next major challenge was to translate sustained growth into decent jobs and broader opportunities for citizens. 

“By investing in the foundations of an AI-ready economy, African countries can unlock productivity gains, spur innovation, and accelerate the structural transformation needed to raise living standards and reduce poverty,” he said. 

The report said declining development assistance would increase pressure on countries to mobilise domestic resources, deepen local capital markets and secure more sustainable financing. 

It said climate-related shocks, including a potential El Niño event, could disrupt agricultural production and worsen food insecurity, while tighter financing conditions could further constrain fiscal space. 

The Bank identified affordable, locally adapted small-scale Artificial Intelligence (AI) applications as a major opportunity for the region, particularly low-bandwidth tools for education, agriculture, health, finance, logistics and public administration. 

“Realising these benefits will require investments in reliable electricity, affordable connectivity, digital skills, quality data, compute infrastructure, and effective governance,” the World Bank stated. 

It called for stronger institutions, technical capacity, effective implementation and regional cooperation, including through the African Union’s continental AI strategy and the African Continental Free Trade Area (AfCFTA). 

The report said such cooperation could help scale AI-enabled solutions and support the creation of more and better jobs across the region.