Africa

• Eastern & Southern Africa
• Western & Central Africa

Sub-Saharan Africa (SSA) is a highly diverse region that includes low-, lower-middle-, upper-middle-, and high-income countries. It also includes 20 fragile or conflict-affected countries and 13 small states with small populations, limited human capital, and constrained land area. With rich natural resources, the world’s largest free trade area, and a large and growing market, the continent has the potential to chart a new development path by harnessing its resources and people.

According to the latest regional economic update, economic growth in Sub-Saharan Africa has remained broadly stable despite heightened geopolitical tensions and regional and domestic headwinds. Growth is projected to increase from 4.1% in 2025 to 4.3% in 2026, an upward revision of 0.3 percentage point from the April 2026 forecast. Growth projections have been upgraded for nearly three-quarters of countries in the region, supported by commodity-driven recoveries, stronger agricultural production and domestic demand, and structural reforms.

However, the outlook remains challenging. The conflict in the Middle East, trade policy uncertainty, financial market volatility, cuts in foreign aid, and rising debt-service burdens continue to weigh on growth prospects. Extreme climate shocks and political and security challenges are also disrupting economic activity and compounding existing vulnerabilities in parts of the region.

Per capita income growth is projected to increase modestly from 1.6% in 2025 to 1.8% in 2026, before averaging 2% a year in 2027–28. While growth is gradually strengthening, it remains insufficient to substantially reduce extreme poverty or create adequate employment opportunities for the region’s rapidly growing labor force. The poverty rate is projected to decline only marginally, from 47.8% in 2026 to 47.1% in 2027 ($3 per day 2021 PPP). The absolute number of people living in poverty is expected to continue rising.

Public debt has stabilized, with the median debt-to-GDP ratio at 57% in 2025, but debt vulnerabilities remain high. Debt-service costs continue to put pressure on government budgets, limiting the resources available for infrastructure, human capital, social protection, and measures to respond to economic and climate-related shocks.

Africa can lay the groundwork for more inclusive growth by investing in its people, strengthening the conditions for private sector–led job creation, and building greater economic resilience. Expanding access to electricity and connectivity, developing skills, strengthening domestic financial markets and revenue mobilization, and deepening regional integration can help countries create more productive jobs and take advantage of emerging economic and technological opportunities.