The World Bank has raised its 2026 economic growth forecast for Sub Saharan Africa to 4.3 percent from 4.1 percent, saying stronger performance in some of the region’s largest economies is helping Africa withstand a difficult global environment.
The upgrade, contained in the bank’s Africa Economic Update released on Tuesday, comes despite higher energy prices linked to the Iran war and continuing pressure from high interest rates and debt costs. The region grew by four point one percent in 2025.
‘Economic activity in Sub Saharan Africa continues to demonstrate remarkable resilience, with growth forecasts upgraded for nearly three-quarters of countries in the region,’ Dabalen said.
Zambia, Nigeria, Ethiopia and Angola were among the economies whose growth forecasts were raised, with the World Bank saying years of economic reforms and improved economic management were beginning to produce results.
But the stronger growth outlook has not translated into a significant improvement in living standards. The bank said per capita income growth is expected to rise to only one point eight percent this year from one point six percent in 2025, meaning income growth continues to lag overall economic expansion.
‘The next challenge is turning growth into more jobs and better opportunities,’ Dabalen said.
The World Bank said governments should make greater use of artificial intelligence to raise productivity and create jobs, even though Africa faces major gaps in infrastructure, capital and digital capacity compared with larger economies such as the United States.
Dabalen said African countries did not need to replicate the huge AI investments being made by richer economies to benefit from the technology. Instead, governments and businesses could focus on practical, low cost applications that work on affordable devices.
Such uses could include AI tools that support student learning, help farmers identify and manage livestock diseases and automate accounting and other routine tasks for small businesses.
The bank also pointed to shared data centres and stronger data protection laws as ways to accelerate the adoption of AI across the continent.
Africa’s growth outlook remains exposed to several risks, including a prolonged conflict in the Middle East, El Niño weather conditions, high interest rates in advanced economies and elevated debt servicing costs.
The region’s debt to GDP ratio has stabilised at about 57 percent, according to the report. However, about half of African countries are either in default or struggling to service their debts, keeping borrowing costs and fiscal pressures high.
The World Bank’s latest forecast therefore points to an improving growth picture, but also a tougher test for governments: turning stronger headline growth into higher incomes, more jobs and better economic opportunities for millions of Africans.