WASHINGTON, April 23, 2025 – Sub-Saharan Africa is experiencing a modest economic recovery marked by improving growth and declining inflation, according to the World Bank’s latest Africa’s Pulse report. The Bank projects regional growth will reach 3.5% in 2025, with further acceleration to 4.3% expected in 2026 and 2027.
This upward trend is being driven by increased private consumption and investment, alongside cooling inflation and greater currency stability. The median inflation rate in the region has declined from 7.1% in 2023 to 4.5% in 2024. Despite these encouraging indicators, the World Bank emphasizes that the region’s economic progress remains uneven and insufficient to address widespread poverty and unemployment.
The 31st edition of Africa’s Pulse, which focuses on Improving Governance and Delivering for People in Africa, notes that real income per capita in 2025 is expected to remain approximately 2% below its most recent peak in 2015. Resource-rich countries, along with those affected by fragility, conflict, and violence, continue to grow at a slower pace than more diversified economies.
“There is a growing gap between people’s aspirations for good jobs and functioning public services and often sub-optimal markets and institutions,” said Andrew Dabalen, World Bank Chief Economist for the Africa Region. “Urgent reforms, backed by more competition, transparency and accountability, will be key to attract private investments, increase public revenue, and create more economic opportunity for millions of Africans entering the workforce each year.”
The report highlights growing uncertainty across the region due to shifting global trade dynamics, regional conflicts, and the effects of climate change on agriculture and livelihoods. It underscores the importance of leveraging opportunities such as the African Continental Free Trade Area (AfCFTA) to diversify economies, increase intra-regional trade, and generate jobs, especially for Africa’s expanding youth population.
In the face of high debt burdens and reduced international aid, the World Bank calls on African governments to improve the efficiency of public spending and enhance service delivery.
Strengthening access to health, education, water, and electricity is seen as crucial to rebuilding public trust and reinforcing the social contract. The report also stresses that a fairer tax system, clearer market rules, and stronger accountability are essential to support business growth and job creation across the region.
