The African Development Bank (AfDB) has announced that 12 of the world's 20 fastest-growing economies are located in Africa. Group President Sidi Ould Tah made this known on Tuesday during the unveiling of the 2026 African Economic Outlook at the AfDB Annual Meetings in Brazzaville.
Resilient Growth Amid Global Challenges
This development underscores Africa's rising economic profile despite escalating global trade tensions, tighter financial conditions, and declining development assistance to emerging markets. Presenting the flagship report, Tah emphasized that African economies have remained resilient in a difficult global environment. Real Gross Domestic Product (GDP) growth stabilized at 4.3 percent in 2025 and is projected to rise further to 4.5 percent in 2026.
According to the AfDB president, this performance reflects the continent's growing economic dynamism despite external shocks and geopolitical uncertainties. GDP per capita growth, a key indicator of living standards, improved from 0.9 percent in 2023 to 1.9 percent in 2025, suggesting a gradual recovery in economic welfare across several African countries.
Surge in Foreign Direct Investment
Tah disclosed that foreign direct investment (FDI) inflows into Africa rebounded strongly in 2024, rising by 75 percent to $97 billion. Remittance inflows also increased by 14 percent to $186 billion during the same period, reinforcing their position as the continent's largest source of external financing ahead of official development assistance and portfolio investments.
The figures indicate improving investor confidence in African economies at a time when many developing regions continue to grapple with weaker capital inflows due to global uncertainty and protectionist trade policies.
Declining Inflation but Persistent Risks
On inflation, Tah said headline inflation across the continent declined from 21.8 percent in 2024 to 13.6 percent in 2025, signaling improving macroeconomic conditions. However, he warned that inflationary pressures remain elevated in some countries due to rising energy prices, higher import costs, and exchange rate volatility—factors that could slow the pace of price stability.
Call for Structural Reforms
Despite the positive outlook, the AfDB president cautioned that structural weaknesses, infrastructure deficits, and financing constraints continue to limit Africa's growth potential. He urged governments across the continent to consolidate recent gains through investment-driven growth policies, stronger human capital development, and increased infrastructure financing.
Tah also called for deeper reforms in Africa's financial systems to reduce dependence on external aid and strengthen domestic resource mobilization. According to him, the continent must take advantage of its demographic strength and growing investment inflows to achieve sustainable long-term growth and greater economic self-reliance.
