Africa’s economic reset requires moving from ambition to execution
The Africa Commerce Convergence Summit keynote address identified four elements that must converge if the continent is to achieve a meaningful economic reset.
AFRICAN ECONOMY
New African bank report highlights strengthening economic growth
By our African Marketing Confederation News Team | 2025
Twelve of world’s 20 fastest–growing economies in 2025 will be from the continent, says the African Development Bank.
Africa’s economic performance is showing signs of improvement but remains vulnerable to global shocks, according to the 2025 Macroeconomic Performance and Outlook (MEO) report released recently by the African Development Bank.
The report, unveiled on the sidelines of the 38th Ordinary Session of the African Union Assembly in Addis Ababa, projects real GDP growth to accelerate to 4.1% in 2025 and 4.4% in 2026. The forecast is attributed to economic reforms, declining inflation and improved fiscal and debt positions.
Photo by Amaury Michaux from Pexels
Despite the positive trajectory, the report highlights that Africa’s growth remains below the 7% threshold required for substantial poverty reduction. The continent also continues to grapple with geopolitical tensions, structural weaknesses, climate-related disasters, and prolonged conflicts in regions such as the Sahel and the Horn of Africa.
It estimated Africa’s average real GDP growth to be 3.2% in 2024, slightly higher than the 3.0% recorded in 2023.
The report notes that while inflationary pressures persist, Africa’s average inflation rate is expected to decline from 18.6% in 2024 to 12.6% in 2025-2026 due to tighter monetary policies.
Public debt levels have stabilised
Fiscal deficits have widened slightly from 4.4% of GDP in 2023 to 4.6% in 2024, but are projected to narrow to 4.1% by 2025-2026. Public debt levels have stabilised but remain above pre-pandemic levels, with nine countries in debt distress and 11 at high risk of distress.
The Macroeconomic Performance and Outlook report, published by the bank bi-annually in the first and fourth quarters of the year, responds to a critical need for timely economic data amid global uncertainty. It serves policymakers, development partners, global investors, researchers and other stakeholders.
The 2025 report identifies 24 African nations – including Djibouti, Niger, Rwanda, Senegal, and South Sudan – as poised to exceed 5% GDP growth in 2025. Additionally, Africa remains the world’s second-fastest-growing region after Asia, with 12 of the 20 fastest-growing economies projected to be on the continent.
Ethiopia’s Finance Minister, Ato Ahmed Shide, praised the report’s depth of analysis. “It underscores the fragility of Africa’s economic growth, which is projected to hover around 4% in the near term,” he said, emphasising the need for proactive policy measures to sustain growth and stability.
He said Ethiopia has taken bold steps to restore macro-economic stability, build resilience and accelerate growth, with the government prioritising economic liberalisation, private sector empowerment and fiscal discipline.
Strengthening Africa’s resilience
In her remarks at the report’s launch, Nnenna Nwabufo, Vice President for Regional Development, Integration, and Business Delivery at the African Development Bank, highlighted the continent’s potential for driving global economic expansion but said achieving this requires decisive and well-coordinated policies.
“As Africa navigates an increasingly complex economic landscape, policymakers must adopt a forward-looking approach to reinforce resilience and drive sustainable growth. Africa’s economic resilience and growth prospects remain strong, but challenges persist,” said Nwabufo, who represented the Bank Group’s President, Dr Akinwumi Adesina.
Momentum Group appoints chief marketing and communications officer
Vongani Mageza brings more than 20 years’ experience across financial services and FMCG) companies such as FNB and Diageo.
AI and algorithm-led engagement among the challenges facing marketers
AI agents will influence shopping, algorithms will supersede social connections, and the clip economy will change how brands connect.
Absa bank launches pan-African campaign with athlete Eliud Kipchoge
The brand partnership includes a new TV commercial featuring Kipchoge, digital storytelling, wellness initiatives and community programmes.
How traditional trade is being reimagined, but remains ‘traditional’
Modern retail in Africa is still dwarfed by the traditional trade. Marketers who dismiss this relationship-heavy retail model do so at their peril.
How luxury brands become a source of meaningfulness for employees
Research finds brands don’t just sell products. They can also provide employees with stories through which they feel their work is meaningful
Redefining honesty in a crisis: Why truth alone is not enough
Honesty must be demonstrated through transparency, accountability and action – shaping both reputation and future trust following a crisis.
Lesotho bank’s culturally intelligent campaign beats bigger rivals
In the funeral plan category, where most advertisements look like an obituary, Standard Lesotho Bank opted to ‘sell the cow’, not the policy.
AMC magazine brings latest news and insights for Africa’s marketers
Strategic Marketing for Africa, the publication for deep-thinking African marketing professionals, is not to be missed.
Global study of marketers and agencies is coming to Kenya for first time
CEO of Scopen says the expansion into East Africa is a natural progression following the success of the research in South Africa.
Huge African and Caribbean trade potential can be unlocked, study finds
Report says around 80% of Africa’s annual goods export potential to the Caribbean remains untapped.