The latest Africa growth forecast from the World Bank puts Sub-Saharan Africa’s economic growth at 4.3% in 2026, up from 4.1% in 2025.
The bank raised its 2026 projection by 0.3 percentage points from its April forecast, with growth supported by stronger domestic demand, improved macroeconomic resilience, investments linked to the energy transition and the expansion of digital technology.
The World Bank said nearly three-quarters of the region’s countries have had their growth forecasts upgraded, including Nigeria, Angola, Ethiopia and Zambia.
Despite the improvement, the bank warned that the pace of growth remains insufficient to substantially reduce extreme poverty or create enough jobs for the region’s rapidly growing population.
The findings are contained in the World Bank’s latest Africa Economic Update, released on Tuesday.
The report also highlighted inflation as a continuing concern. Median inflation across Sub-Saharan Africa is projected to rise from 3.7% in 2025 to 5.5% in 2026, partly because of higher fuel, fertiliser and food prices.
Public debt also remains a major constraint on many governments. The World Bank said public debt is broadly around 57% of gross domestic product across the region, while debt-service obligations continue to limit spending on health, education and infrastructure.
The bank said governments therefore need to maintain macroeconomic stability while creating conditions for stronger private-sector investment and job creation.
A major focus of the latest report is artificial intelligence and its potential impact on African economies.
The World Bank identified Nigeria, Kenya and South Africa among the countries where AI adoption is becoming increasingly concentrated. However, it said African countries need to address basic infrastructure and skills gaps if they are to benefit fully from the technology.
Reliable electricity, affordable internet connectivity, digital skills, quality data and access to computing infrastructure were identified as important requirements for wider AI adoption.
The bank also pointed to opportunities for African countries to develop and deploy AI applications suited to local needs, including education, agriculture, healthcare, financial services, logistics and public administration.
For Nigeria, the report comes as the country continues to pursue economic reforms aimed at stabilising its finances, attracting investment and strengthening growth.
The World Bank said the region’s improved growth outlook is encouraging but warned that stronger growth alone will not be enough to deliver broad improvements in living standards.
It said countries need to combine economic stability with measures that improve productivity, create jobs and expand access to essential services.