Sub-Saharan Africa’s economy is projected to grow 4.3% in 2026, up from 4.1% in 2025 and 0.3 percentage points above the World Bank’s April forecast.
The World Bank’s latest Africa Economic Update says stronger domestic demand, improved economic management and investment in energy transition and digital technologies are supporting the recovery.
However, inflation is expected to rise from 3.7% to 5.5%, while public debt remains high at about 57% of GDP. Rising debt-service costs and declining development assistance are limiting government spending on health, education and infrastructure.
The World Bank warned that geopolitical tensions, climate shocks, higher commodity prices and tighter global financing remain major risks.
The report also highlights artificial intelligence as an opportunity for Africa, particularly through affordable, low-bandwidth applications in agriculture, healthcare, education, finance and public administration.
But the World Bank says growth remains too weak to significantly reduce poverty or create enough jobs for the region’s rapidly expanding workforce.
Reliable electricity, affordable connectivity, digital skills, data and stronger institutions will be critical to turning AI into productivity and employment gains.
