World Bank Warns of Stalling Growth in Sub-Saharan Africa

The World Bank's latest Africa Economic Update indicates that Sub-Saharan Africa's economic recovery is stalling, with growth projections for 2026 revised downward by 0.3 percentage points to 4.1%. The report highlights persistent downside risks, including geopolitical tensions, high debt service burdens, and structural constraints that hinder job creation.

Inflation is projected to rise to 4.8% in 2026, exacerbated by conflicts in the Middle East and reduced external financing, particularly affecting low-income countries. The report emphasizes that 620 million people are expected to enter Africa's labor force by 2050, necessitating a shift towards diversified growth led by the private sector.

Andrew Dabalen, the World Bank Group Chief Economist for the Africa region, notes that high public debt and rising debt service costs limit countries' abilities to fund developmental priorities. The report calls for coordinated actions at regional and national levels to support infrastructure investment and create better job opportunities.