Africa’s economy is projected to grow by4.1% in 2025, a 0.9-percentage-point increase from 2024, according to theAfrican Development Bank(AfDB). This growth is expected to be driven byeconomic reforms, improved fiscal and debt positions, and declining inflationary pressures. Africa will continue to be the world’ssecond-fastest-growing regionafter Asia, and12 African countrieswill be among the world's top 20 fastest-growing economies.
Regional Economic Performance
- East Africa: Fastest-growing region, with growth rising from4.4% in 2024 to 5.3% in 2025. Strong performers includeSouth Sudan (34.4%), Rwanda, Uganda, Ethiopia, Tanzania, and Kenya.
- West Africa: Growth will increase from4.1% to 4.6%, withSenegal, Niger, Togo, and Côte d'Ivoireamong the top performers.
- North Africa: Economic recovery expected, with growth improving from2.7% in 2024 to 3.9% in 2025, driven byLibya (7.5%), Egypt (3.9%), and Morocco.
- Central Africa: Growth projected to stabilize at4.0% in 2025, with strong performances inDR Congo and Cameroon.
- Southern Africa: Moderate recovery from1.8% in 2024 to 3.0% in 2025, supported by strong growth inZambia, Zimbabwe, and Botswana.
Top Countries by GDP Growth (2025 Projections)
| Country | GDP Growth Rate (%) |
|---|---|
| South Sudan | 34.4% |
| Libya | 7.5% |
| Rwanda | 7.1% |
| Djibouti | 7.0% |
| Uganda | 6.8% |
| Ethiopia | 6.4% |
| Benin | 6.4% |
| Côte d'Ivoire | 6.3% |
| Gambia | 6.0% |
| Kenya | 5.0% |
Key Growth Drivers:
- South Sudan’sgrowth is fueled by theresumption of full oil production and exports.
- Libyabenefits fromstabilized oil production and political reconciliation.
- Rwanda, Djibouti, and Ugandaare experiencing increasedinvestment in energy, infrastructure, and manufacturing.
- Ethiopia, Benin, and Côte d'Ivoireare leveragingagricultural modernization and value additionto drive growth.
Challenges and Risks
- Inflationary pressuresremain high but are expected to decline.
- Geopolitical tensions and conflicts(e.g., Sudan) could hinder economic stability.
- Climate shockspose risks to agricultural-dependent economies.
- Debt vulnerabilitiespersist, requiring ongoing fiscal discipline.
