Abidjan, May 28, 2025 – The African Development Bank (AfDB) has downgraded Africa’s growth forecast for the next two years.
It attributed the development to “unprecedented global circumstances” and “seismic shifts in the trade policies of major economies.”
The bank disclosed this in its African Economic Outlook report published on Tuesday.
It warned that significant aid cuts will also hit low-income countries on the continent.
On the overall, the bank projected a growth rate of 3.9 percent for 2025 and 4 percent for 2026 for Africa, a downgrade of 0.2 and 0.4 points, respectively.
It however, said 21 African countries were still expected to see economic growth of more than five percent this year in spite of ongoing uncertainty due to effective domestic reforms, relative diversification and improved macroeconomic management over the last decade.
The AfDB urged member countries to continue to realise their development potential through strategic investments, policy support, and innovative financing mechanisms.
The report advised that institutions, governance and the rule of law are vital to managing Africa’s capital and called for transparent public finances, secured property rights and predictable legal systems. (Africanews)
