The report was officially unveiled at the headquarters of the United Nations Economic Commission for Africa (ECA) in Addis Ababa, the commission disclosed in a statement issued on Tuesday. The projections mark a gradual improvement from growth rates of 3.5 per cent recorded in 2024 and an estimated 3.9 per cent in 2025.
According to the report, the modest rebound reflects improving macroeconomic stability in several of Africa’s largest economies, which has helped to support investment flows and consumer spending across the continent.
Regionally, East Africa is expected to maintain its position as the fastest-growing subregion, with economic expansion forecast at 5.8 per cent in 2026. North Africa is projected to grow by 4.1 per cent, while West Africa is expected to record growth of 4.4 per cent. Central Africa’s economy is forecast to expand by 3.0 per cent, with Southern Africa trailing at 2.0 per cent.
Despite the positive outlook, the report highlighted persistent fiscal pressures facing the continent. Africa’s average public debt-to-GDP ratio remains elevated at approximately 63 per cent in 2025, while interest payments are projected to absorb nearly 15 per cent of government revenues. This, the report noted, continues to limit fiscal space and constrain spending on development priorities.
The ECA called for renewed multilateral cooperation, stronger global policy coordination, and reforms to the international financial architecture to address Africa’s mounting debt challenges, climate-related shocks, and development financing gaps.
Commenting on the findings, Director of the ECA’s Macroeconomics, Finance and Governance Division, Mr Stephen Karingi, said Africa’s improving outlook remains fragile. He warned that high debt-servicing costs, limited fiscal buffers, and volatile commodity prices continue to pose risks to inclusive and sustainable growth across the continent.
Karingi also noted that global economic conditions remain challenging, with world output forecast to grow by 2.7 per cent in 2026, slightly below the 2.8 per cent projected for 2025 and significantly under the pre-pandemic average of 3.2 per cent. He attributed the slowdown to subdued investment levels and constrained fiscal space globally.
UN Secretary-General António Guterres, in his remarks, said rising economic, geopolitical, and technological tensions are reshaping the global economy and heightening uncertainty. He added that many developing economies are still struggling, while progress towards achieving the Sustainable Development Goals remains slow.
Presenting the report, Mr Hopestone Chavula, Officer-in-Charge of the ECA’s Macroeconomic Analysis Section, stressed that Africa’s recovery remains uneven across subregions. While East Africa continues to drive growth momentum, he noted that other parts of the continent are held back by structural weaknesses and exposure to external shocks.
Overall, the report underscores cautious optimism for Africa’s economic trajectory, while highlighting the need for sustained reforms and global support to translate growth into long-term development gains.