Africa’s GDP is expected to grow by 4.2% in 2025, according to the latest edition of the Foresight Africa report by the Brookings Institution.
The optimistic forecasts of Foresight Africa suggest an acceleration compared to the 3.1% growth rate recorded in 2023, as reported by the African Development Bank (AfDB). This marks a notable recovery after a period characterized by inflationary pressures, financing difficulties, and the prolonged effects of the Covid-19 pandemic.
The American think tank explains that this expected growth should be driven by several factors, notably increased infrastructure investments and expanding economic reforms across multiple countries on the continent.
Africa also continues to benefit from strong domestic demand, fueled by rapid urbanization and a growing young population.
Furthermore, the gradual implementation of the African Continental Free Trade Area (AfCFTA) is also highlighted as a potential catalyst for new economic opportunities. AfCFTA plays a key role in regional integration and the expansion of intra-African trade, which could further boost growth across member states.
However, the report’s authors warn of several risks that could weigh on these projections. External debt remains a major challenge, with nearly half of African countries classified as being in distress or at high risk of financial distress.
Additionally, extreme weather conditions, such as droughts and floods, continue to threaten agricultural production and food security in several regions.
