SP Global Ratings projects that most African countries will report average GDP growth of 4.5 in 2026-2028, higher than in other emerging markets and historical levels. Faster economic growth is essential to improve the living standards of a rapidly growing population. We expect Africa's population to account for nearly one-third of the global population by 2060.
However, structural challenges persist, as many African sovereigns have limited government revenue and high debt-servicing costs that inhibit investments in public infrastructure. While lower global interest rates may alleviate near-term financing risks, a complex web of financial, regulatory and execution barriers exacerbates Africa's economic vulnerabilities. These barriers need urgent attention to unlock the continent's economic potential. Moreover, despite favourable terms of trade in the context of high commodity prices, Africa is grappling with financing shortages amplified by a sharp reduction in official development assistance.
Rising demand for energyEnergy is a strategic priority for Africa as it faces rising demand and a push for industrial transformation. The continent's infrastructure needs are immense, encompassing energy, transport and logistics, housing, water and sanitation and digital infrastructure. All of these are critical for industrialisation, trade and social development.
