The World Bank has raised its 2025 growth forecast for Sub-Saharan Africa to 3.8 percent, up from 3.5 percent projected in April, as easing inflation and stabilizing exchange rates boost investor confidence across the region. The new outlook, published in the latest Africa’s Pulse report, reflects a gradual recovery in consumer demand and private investment after several years of economic strain, as reported by Reuters.
The Bank noted that median inflation in several African economies has fallen below 4 percent, while local currencies that had weakened earlier in the year have since stabilized. The region’s growth is expected to strengthen further, with an average expansion of 4.4 percent forecast between 2026 and 2027, supported by moderating food prices and a rebound in commodity exports, according to Bloomberg and Reuters.
Andrew Dabalen, the World Bank’s Chief Economist for Africa, said the improved macroeconomic stability offers governments an opportunity to pursue growth-focused reforms. “With inflation easing and exchange rates stabilizing, countries should now prioritize fiscal discipline and policies that promote jobs and private-sector investment,” Dabalen said in the report.
Despite the positive outlook, the World Bank cautioned that high debt levels, limited fiscal buffers, and external trade pressures could weigh on medium-term growth prospects. It urged African governments to accelerate structural reforms in energy, infrastructure, and governance to ensure that the ongoing recovery translates into broad-based and sustainable economic gains, as highlighted in the Africa’s Pulse report.
