The World Bank’s October Economic Update says Sub‑Saharan Africa’s economy is set to expand faster in 2026 despite geopolitical tensions, climate shocks and global trade uncertainty.

The lender lifted its regional growth forecast to 4.3% for 2026, up from 4.1% projected for 2025 and 0.3 percentage points higher than its April estimate.

Stronger domestic demand, macro‑economic resilience and investment linked to clean energy and digital technologies are cited as the main drivers of the improved outlook.

The report notes that growth forecasts have been upgraded for nearly three‑quarters of the region’s countries, including Angola, Ethiopia, Nigeria and Zambia, reflecting years of reforms and better economic management.

While the outlook is positive, the Bank warns that inflation is expected to rise to a median 5.5% in 2026, driven by higher global fuel, fertilizer and food prices, and that fiscal pressures could limit household incomes and public spending.

Public debt across the region has stabilised at roughly 57% of GDP, but high debt‑service costs continue to constrain spending on health, education and infrastructure.

The Bank highlights artificial intelligence as a potential productivity and job‑creation engine, naming Kenya, Nigeria and South Africa as early adopters of affordable, locally adapted AI solutions.

According to the report, AI applications in agriculture, education, healthcare, finance and logistics could deliver greater economic benefits to the region than more expensive frontier technologies.

The World Bank cautions that downside risks remain, including further geopolitical tensions that could push up commodity prices, climate shocks such as a possible El Niño event, and tighter global financial conditions that may restrict financing.