Africa’s economy is projected to grow by 3.8% in 2025 and 4.1% in 2026, according to a report by the United Nations Economic Commission for Africa (UNECA). The findings were unveiled in Addis Ababa during the 57th session of the Conference of African Ministers of Finance, Planning, and Economic Development.
Economic Resilience and Challenges
UNECA’s Director of the Macro-Economics, Finance, and Governance Division, Zuzana Schwidrowski, acknowledged Africa’s economic resilience but noted that current growth rates remain inadequate for achieving broad-based social development.
While intra-African trade has become more diversified in certain regions, its overall contribution to economic growth has declined compared to previous years. Despite being the world’s second-fastest-growing region, Africa’s economic expansion has been largely driven by easing inflationary pressures rather than structural transformation.
Persistent Poverty and Climate Risks
Although extreme poverty has declined in line with global trends, it remains widespread across most of Africa, with North Africa being the only exception.
Additionally, the report warns of the escalating impact of climate change on the continent. Rising temperatures and erratic weather patterns are expected to reduce agricultural productivity and exacerbate food insecurity in many regions, posing further challenges to sustainable development.