Africa is expected to maintain steady growth over the forecast period, supported by improving macroeconomic stability, resilient domestic demand and stronger activity in key economies, Bridgewater Advisors has stated.

In its 2026 Africa Economic Outlook Report, it said, however, performance will remain uneven across regions.

East Africa is likely to remain the continent’s growth engine, while North and West Africa record more moderate expansion, Southern Africa recovers gradually and Central Africa remains exposed to extractive-sector dependence and conflict-related risks.

Easing Inflation Should Strengthen Macro Environment

It pointed out that the expected decline in inflation should improve conditions for households, businesses and policymakers, supporting consumption, investment planning and policy stability.

“This disinflationary trend is likely to be supported by tighter monetary and exchange rate policies, improved fiscal discipline, stronger agricultural production and better inflation-targeting frameworks”.

However, food insecurity, currency volatility, energy price shocks and geopolitical disruptions could keep price pressures elevated in some markets, it added.

External Resilience Will Remain a Key Test

It continued that Africa’s trade and current account outlook will remain uneven, reflecting differences in export diversification, infrastructure readiness and exposure to global demand.

“Southern, North and East Africa appear better positioned for stronger export growth, while West and Central Africa may face weaker momentum due to inflationary pressures, slower activity and commodity dependence. Persistent current account deficits across most regions suggest that external vulnerability will remain a major issue, particularly where import dependence and narrow export bases continue to dominate”, it explained.

Fiscal Consolidation Will Shape Policy Space

The report stressed that debt pressures are expected to ease gradually, but debt sustainability will remain a key concern for several economies.

It noted that stronger primary balances point to progress toward fiscal consolidation, but sustaining this improvement will require better public financial management, stronger revenue mobilisation, effective debt management and improved coordination between fiscal and monetary policy. “Without this, high debt-servicing costs could continue to crowd out investment in infrastructure, human capital and productive sectors”.

Investment and Productivity Will Determine the Depth of Transformation

It alluded that Africa’s long-term outlook will depend on the continent’s ability to convert growth momentum into productive capacity.

However, East Africa appears better positioned to attract investment and strengthen savings, supported by income growth, financial inclusion, infrastructure development and private capital inflows. “Across the continent, stronger capital formation will be essential for financing infrastructure, energy systems, digital transformation, logistics, industrial capacity and long-term value-chain development”.

Meanwhile, West Africa retained growth in Gross Domestic Product at 4.7% in both 2024 and 2025.

The region’s growth in 2025 was driven by Niger and Senegal. Growth in both countries was influenced largely by activities in the mining and energy sectors.

Inflation, on the other hand, reduced from 24.9% in 2024 to 15.8%.