Bridgewater Advisors forecasts that Africa will maintain steady economic growth between 2026 and 2028, driven by improving macroeconomic stability, robust domestic demand, and stronger performance in key economies. However, the continent’s economic expansion is expected to remain uneven across its regions, according to the firm’s 2026 Africa Economic Outlook Report.
Regional Growth Divergence Expected
East Africa is projected to continue leading the continent’s growth trajectory, acting as its primary economic engine. In contrast, North and West Africa are anticipated to experience more moderate expansion. Southern Africa is set for a gradual recovery, while Central Africa remains vulnerable due to its reliance on the extractive sector and ongoing conflict-related risks.
Easing Inflation to Bolster Macroeconomic Conditions
A projected decline in inflation rates across the continent is expected to create a more favorable environment for households, businesses, and policymakers. This easing of price pressures should support increased consumption, enhance investment planning, and contribute to policy stability.
The disinflationary trend is anticipated to be supported by a combination of factors. These include tighter monetary and exchange rate policies, improved fiscal discipline, stronger agricultural output, and more effective inflation-targeting frameworks. However, potential headwinds such as food insecurity, currency volatility, energy price shocks, and geopolitical disruptions could sustain elevated price pressures in certain markets.
External Resilience Faces Ongoing Challenges
Africa’s trade and current account outlook is expected to remain mixed, reflecting significant differences in export diversification, infrastructure readiness, and exposure to global demand fluctuations. Southern, North, and East Africa appear better positioned to achieve stronger export growth.
Conversely, West and Central Africa may face slower momentum due to inflationary pressures, reduced economic activity, and a heavy reliance on commodity exports. Persistent current account deficits across most regions indicate that external vulnerability will continue to be a significant concern, particularly for economies dependent on imports and possessing narrow export bases.
Fiscal Consolidation to Define Policy Space
While debt pressures are expected to ease gradually, debt sustainability will remain a critical issue for several African economies. Progress towards fiscal consolidation is evident, with stronger primary balances observed.
Sustaining this improvement, however, hinges on enhanced public financial management, more robust revenue mobilization, effective debt management strategies, and improved coordination between fiscal and monetary policies. Without these measures, high debt-servicing costs could continue to divert crucial funds away from investments in infrastructure, human capital, and productive sectors.
Investment and Productivity Key to Deeper Transformation
The long-term economic outlook for Africa hinges on its capacity to translate current growth momentum into increased productive capacity. East Africa seems particularly well-positioned to attract investment and bolster savings, supported by rising incomes, greater financial inclusion, ongoing infrastructure development, and significant private capital inflows.
Across the continent, strengthening capital formation will be essential for financing critical areas such as infrastructure development, energy systems, digital transformation initiatives, logistics networks, industrial capacity expansion, and the long-term development of value chains. In West Africa specifically, GDP growth was maintained at 4.7% for both 2024 and 2025, largely driven by mining and energy sector activities in countries like Niger and Senegal, while inflation decreased significantly from 24.9% in 2024 to 15.8%.
Looking ahead, the continent’s ability to foster inclusive growth, attract sustained investment, and enhance productivity will determine the depth and breadth of its economic transformation in the coming years.
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