World Bank Lifts Africa 2026 Growth Forecast to 4.3%, Urges AI Investment

The World Bank raised its 2026 growth forecast for Africa to 4.3% from 4.1% expected in April, citing resilience across the region and urging governments to invest in artificial intelligence to boost productivity and job creation. The region's economy grew 4.1% in 2025, the lender said in its Africa Economic Update report on Tuesday. Zambia, Nigeria, Ethiopia and Angola all saw forecast upgrades, which the bank attributed to years of economic reforms and better management. Andrew Dabalen, the World Bank's chief economist for Africa, said activity in Sub-Saharan Africa "continues to demonstrate remarkable resilience," with upgrades for nearly three-quarters of countries. Risks remain, including a prolonged Middle East conflict, the El Niño weather phenomenon, high interest rates in advanced economies and elevated debt servicing costs. The region's debt-to-GDP ratio has stabilized at about 57%, but roughly half of countries are in default or struggling to service debt. Poverty reduction lags: per capita income growth is expected to reach just 1.8% this year from 1.6% last year. Dabalen urged low-cost AI applications in education, agriculture and small-business accounting, plus shared data centers and stronger data protection laws.