NAIROBI, May 27 – Africa’s economic growth is expected to slow slightly to 4.2% in 2026 from 4.4% last year as tensions in the Middle East continue to raise fuel, fertilizer and food costs across the continent, the African Development Bank said.
In its latest African Economic Outlook released during the bank’s annual meetings in Brazzaville, the lender said the continent would remain among the world’s fastest-growing regions despite ongoing geopolitical and trade pressures.
The bank expects growth to recover to 4.4% in 2027, assuming disruptions linked to the Middle East crisis ease within the next two to three months.
According to the report, stronger agricultural output, improved macroeconomic management and firmer commodity prices helped support growth in 2025 even as global trade uncertainty weighed on several economies.
However, the AfDB warned that prolonged supply chain disruptions could further pressure energy and fertilizer prices, with wider effects on inflation and economic stability across African markets.
East Africa, still the continent’s fastest-growing region, is forecast to record a sharper slowdown this year as higher import and energy costs strain household spending and increase food security risks.
The report was published as policymakers, investors and development institutions gathered in the Republic of the Congo to discuss new ways of mobilising African capital to fund the continent’s development needs amid declining foreign aid flows.
AfDB President Sidi Ould Tah said Africa would need to sustain annual growth above 7% over several decades to create enough jobs and significantly reduce poverty levels.
“Achieving sustained and inclusive growth will require a substantial increase in investment,” Tah said in the report.
