According to multilateral development finance institution the African Development Bank’s (AfDB) African Economic Outlook, the continent’s economy is projected to reach an annual growth rate of 4.3% in 2025, up from 3.7% in 2024.
The report shows that 41 countries on the continent are projected to experience stronger economic growth in 2024 compared to 2023, with 17 countries set to experience rates of more than 5% for the year. By 2025, this number could increase to 24 countries, making Africa the second fastest-growing region globally.
“Africa’s future is bright, but we need to make sure we tackle governance, transparency, accountability and management of our natural capital,” stated AfDB President Akinwumi Adesina. “We need to make sure resources are used for the benefit of the people of this continent.”
East Africa leads as the fastest-growing region on the continent, with its GDP growth projected to rise from an estimated 4.9% in 2024 to 5.7% in 2025. In West Africa, growth is projected to increase from 4.2% in 2024 to 4.4% in 2025, while growth in North Africa is expected to rise from 3.6% in 2024 to 4.2% in 2025.
Growth in Central Africa is forecast to improve from 4.1% in 2024 to 4.7% in 2025 – largely due to a projected increase in demand for critical minerals from the region. Southern Africa’s GDP growth is expected to see an increase from 2.2% in 2024 to 2.7% by 2025, showing an upgrade of 0.1% over the AfDB’s January 2024 projections.
The report noted strategic policies and strong political commitment as key towards driving economic growth on the continent, with emphasis placed on infrastructure development, improved institutional governance capacity and youth development.
