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.

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.