AfDB report highlights Africa’s economic strength driven by investment surge, bold reforms

A new report from the African Development Bank (AfDB) underscores Africa’s impressive economic recovery, highlighting the continent’s resilience, growth, and the impact of bold reforms.
With a projected GDP growth from 3.2% in 2024 to 4.1% in 2025 and 4.4% in 2026, Africa is now the second-fastest-growing regional economy globally, trailing only Asia. This growth is fueled by significant investments, pro-business policies, and infrastructure developments. The AfDB’s latest ‘Africa’s Performance and Outlook’ report reveals that several African nations are reaping the benefits of new governance and reforms, especially following widespread leadership transitions. The private sector is playing a pivotal role, with startups, renewable energy, and the African Continental Free Trade Area (AfCFTA) opening new avenues for trade and growth. Albert Muchanga, African Union trade commissioner, envisions expanding logistical hubs and a pan-African shipping line, prompting him to highlight the “immense potential, which we are yet to fully respond to.”
The East African region is poised for the strongest growth, with countries like Kenya, Tanzania, and Rwanda expecting annual expansions of 5% or more, driven by infrastructure, agritech, and tourism. In West Africa, the oil sector is a significant driver, with Nigeria’s Dangote refinery ramping up production to meet local demands. Despite the positive outlook, challenges persist, including geopolitical tensions, climate change, and conflict. However, Africa’s growth outpaces the global average, positioning the continent as a key economic player, with 12 African nations projected to rank among the world’s top 20 fastest-growing economies by 2025.