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Sub-Saharan Africa’s economies are set to grow by 3.8% this year, up from an earlier forecast of 3.5%, as inflation eases and trade conditions improve, the World Bank said on Tuesday.
In its latest Africa’s Pulse report, the bank credited the upgrade to declining price pressures and stronger foreign trade. The region’s median inflation rate fell to 4.5% in 2024 and is projected to stabilise between 3.9% and 4% through 2026.
Growth across Sub-Saharan Africa is expected to further accelerate, averaging 4.4% annually over the next two years, driven by improved outlooks for major economies such as Ivory Coast, Ethiopia, and Nigeria.
However, the World Bank warned that high debt levels, weak job creation, and global trade uncertainty — particularly under US President Donald Trump’s administration — continue to threaten the region’s recovery.
“Trade challenges remain very high. We don’t know how this is going to be resolved because there are lots of negotiations going on,” said Andrew Dabalen, the World Bank’s chief economist for Africa, citing the recent expiry of the African Growth and Opportunity Act (AGOA), a key US-Africa trade pact.
The bank urged African governments to focus on job creation, stressing that new opportunities must offer “better pay, stability, and prospects for growth.”
