The World Bank has raised its 2026 growth forecast for Sub-Saharan Africa but warned that stronger economic expansion is not yet translating into enough jobs and higher incomes for the region’s growing population.
The bank now expects the region’s economy to grow 4.3% this year, up from its April forecast of 4.1%. Growth was estimated at 4.1% in 2025.
The revision reflects improved economic performance in several major economies, with nearly three-quarters of countries in the region receiving higher growth projections. Zambia, Nigeria, Ethiopia and Angola were among those cited as benefiting from reforms and improved economic management.
But the stronger outlook comes with a major challenge: ensuring that growth creates enough opportunities for people entering the workforce.
Andrew Dabalen, the World Bank’s chief economist for Africa, said the region’s next priority should be turning economic expansion into jobs and broader opportunities.
“We need to focus on practical, low-cost investments in artificial intelligence,” Dabalen said, pointing to potential uses including helping students learn, detecting livestock diseases and improving accounting for small businesses.
The bank said per-capita income in the region is expected to rise by 1.8% in 2026, compared with 1.6% last year. While the increase signals improving living standards, the pace remains modest given the region’s population growth and development needs.
Africa also faces several risks that could weaken the recovery, including a prolonged conflict in the Middle East, higher energy prices, the effects of El Niño and continued high interest rates in advanced economies.
Debt remains another constraint. Public debt is equivalent to about 57% of GDP across the region, while roughly half of countries are either in default or facing serious debt difficulties.
The World Bank said wider use of AI could help economies address some of these constraints if countries invest in shared data infrastructure and establish laws to protect data.
Government’s challenge is therefore not only to sustain growth but to ensure that new technology, investment and economic reforms translate into productive work and higher incomes for ordinary people.
