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Pan-African multilateral financial institutions, African export-import banks (Afreximbank), have project a continental gross domestic product (GDP) to grow by 4.0 percent despite global economic fragility.
In the 2025 African Trade and Economic Outlook (ATEO) report released on Saturday, the bank projects that African GDP will reach 4.1 percent in 2026 and 4.2 percent in 2027.
African trade and economic prospects 2025 (ATEO) provides an in-depth analysis of African economic performance and trade and projects the path of continental growth in short-half-term terms.
It highlights the development of the macroeconomic and the main trade that forms the recovery of Africa and detailed opportunities for sustainable growth in the midst of increasing global and domestic uncertainty.
The report said 41 percent of the African economy would grow at least five percent, almost double the global level of 21 percent, to reflect the role that developed in the continent as a driver of global growth.
According to the report, the gradual recovery of Africa will be supported by increasing global demand for its exports, disinfection trends, and the implementation of structural reforms to diversify the economy.
The report said there was a risk of loss to African economic prospects, including increasing geopolitical tensions and fluctuating commodity prices.
Also read: Afreximbank Approves the Financial Facilities of $ 200 Million for Bua Group
It reads: “Economic slowdown in the United States and China can also affect international financial conditions and demand for African resources.
“Internal conflict and climate change threaten stability and growth.”
However, the report said the potential for reverse risk included a decrease in anticipated global interest rates, which will begin in 2025 if geopolitical uncertainty remains unchanged, has the potential to increase access to financing.
“In addition, the African Continental Free Trade area (AFCFTA) presents opportunities to increase economic integration and intra-African trade, reducing vulnerability to external shocks in the medium term,” he added.
To overcome the potential risk of decline, the report suggested several short -term strategies, which included adopting the attitude of monetary policy nuanced and proactive and increasing resistance to disturbances related to climate and geopolitics.
Other strategies include increasing domestic consumption in addition to the service sector and accelerating the implementation of the African Continental Free Area (AFCFTA) agreement.
In the medium term, this report recommends a shift in strategies towards economic diversification through strategic investment in the development of human resources and labor training in the main sectors that arise.
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