East Africa expected to be continent’s star economic performer in 2025

The report from the UN’s Department of Economic and Social Affairs believes this growth will be driven by strong economic performances by countries including Ethiopia, Kenya, Rwanda, Uganda and Tanzania.  

West Africa’s GDP is forecast to grow at 4.1%, North Africa at 3.6%, Central Africa at 3%, and Southern Africa at 2.2%. 

The UN says the continent’s improved economic outlook will result from to easing of supply chain disruptions, relaxed financial conditions, and a strong rebound in international tourism to the continent.  

But challenges do remain. These including regional conflicts, rising debt service costs, youth unemployment, the impact of climate change, and persistent inflation. 

Overall, the UN expects economic growth in Africa as a whole to strengthen from an estimated 3.4% in 2024 to 3.7% in 2025 and 4.0% in 2026. 

SSA region to grow 4.2%, says Moody’s 

Meanwhile, an economic report on sub-Saharan Africa released by the US-based Moody’s ratings agency this month forecasts that the SSA region will grow by 4.2% in 2025, compared to 3.8% in 2024. 

South Africa’s improvement will be gradual, despite a significant reduction in power cuts, while Nigeria is likely to continue its efforts to establish a more efficient foreign exchange market. 

The ratings agency also expects stronger economic growth in Angola and the Republic of Congo in 2025 due to the exploitation of new oil and gas projects that will offset the decline in production from older fields.  

Namibia and the DRC, both of which produce raw materials essential for the energy transition, will see a significant increase in foreign direct investment. 

Zambia faces an ongoing challenge due to the persistent drought that has disrupted the supply of hydroelectric power and impacted mining production.