The Economic Commission for Africa’s (ECA) Economic Report on Africa (ERA) forecasts a gradual recovery in the continent’s economic growth, projecting a rise to 3.8% in 2025 and 4.1% in 2026. According to the report, this growth will be driven by increased private consumption and improved trade performance.
However, despite the rebound, economic expansion remains below the level needed to significantly improve living standards and achieve the Sustainable Development Goals (SDGs). The ECA highlighted multiple risks that could hinder Africa’s growth prospects, including global economic tensions, an intensified U.S.-China trade war, regional and domestic conflicts, and the growing impact of climate-related disasters.
While Africa’s debt-to-Gross Domestic Product (GDP) ratio is expected to decline from 67.3% in 2023 to 62.1% in 2025, the report warns that high debt levels and expensive borrowing costs continue to limit essential development spending. This has led to renewed calls for reforms in the global financial system.
On poverty, the report notes that while the proportion of Africans living in extreme poverty (below $2.15 per day) is decreasing, the absolute number of people in poverty has risen to an estimated 468 million, exacerbated by recent economic crises.
The report also underscores the urgent need for climate action, revealing that in 2022, weather, climate, and water-related disasters affected over 110 million Africans, resulting in economic losses exceeding $8.5 billion.
Additionally, with 76 million young Africans not engaged in employment, education, or training, the ECA calls for greater investment in skills development to harness the continent’s youthful workforce and boost economic resilience.
Despite global trade tensions, the report identifies an opportunity for Africa to enhance intra-regional trade and self-reliance through the African Continental Free Trade Area (AfCFTA), which could drive long-term economic stability and growth.
 Economic Report on Africa (ERA) forecasts a gradual recovery in the continent’s economic...){kind=link}