Tariffs Tug at Africa's Economic Growth Prospects
The African Development Bank forecasts a 3.9% growth in Africa’s economy for this year, a slight downtick from earlier predictions. Trade tariffs by the U.S. are causing macroeconomic uncertainties, affecting Africa's exports and financial landscape. Yet, positive growth is seen in certain economies, led by Ethiopia and Rwanda.
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- Kenya
Africa's economy is poised to expand by 3.9% this year, according to the African Development Bank's latest African Economic Outlook report. This marks an improvement on last year's 3.3% growth, albeit a slight downgrade from previous projections by the bank, driven largely by new U.S. trade tariffs.
Amid these challenges, the African Development Bank, Africa's premier development financer, cites a $318 billion capital base but has revised its 2026 growth outlook downward by 0.4 percentage points to 4.0%. The primary drivers of this revision include recent trade disturbances and resulting economic unpredictability.
The ongoing tariff tensions, including the U.S.'s 'Liberation Day' pause, have already impacted the continent, seen in falling commodity prices and asset revaluations. However, strong growth of over 7% is anticipated in nations like Ethiopia and Rwanda, inspiring cautious optimism for the region's future economic trajectory.
(With inputs from agencies.)
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