AfDB Predicts 4 African Countries Including Ethiopia to Achieve 7 % Growth Threshold Necessary to Reduce Poverty  

Addis Ababa, May 27, 2025 (ENA) –Ethiopia, Niger, Rwanda, and Senegal are expected to achieve or surpass the 7 percent growth threshold necessary to reduce poverty and promote inclusive growth, the African Development Bank Group said in its flagship 2025 African Economic Outlook report.

The report, titled “Making Africa’s Capital Work Better for Africa’s Development,” was released during the Bank Group’s 2025 Annual Meetings, taking place in Abidjan, Côte d’Ivoire.

Despite the prevailing domestic and external challenges Africa continues to demonstrate notable resilience.

This demonstrates the continent’s capacity to weather multiple shocks while identifying pathways to unlock a vast potential for transformation, the Bank stated.

According to the report, Africa's economy is projected to increase from 3.3 percent growth in 2024 to 3.9 percent in 2025, reaching 4 percent in 2026, despite mounting geopolitical uncertainties and trade tensions.

 “Since January 2025, the world has experienced additional shocks, exacerbating an already complex global macroeconomic landscape. These shocks include a plethora of new tariffs imposed by the United States and retaliatory measures announced and implemented by its trading partners,” the report reads.

Despite the challenges, according to the report, 21 African countries are forecast to record real GDP growth above 5 per cent in 2025.

Ethiopia, Niger, Rwanda, and Senegal are expected to achieve or surpass the 7 percent growth threshold necessary to reduce poverty and promote inclusive growth, AfDB’s report declared.   

In terms of individual income growth, the continent’s real GDP per capita is projected to rise from 0.9 per cent in 2024 to 1.5 per cent in 2025, potentially reaching 1.7 per cent in 2026.

However, these figures have also been revised down from earlier forecasts of 1.8 per cent in 2025 and 2.2 per cent in 2026.

Achieving high and resilient economic growth rates should thus remain a key policy priority of African countries to engender stronger economic growth and accelerated poverty reduction, the report indicated.

According to the report, the impact of the current tariff shock is expected to vary across countries and regions. “The tariff shock and its attendant uncertainty could have asymmetric impacts on countries and regions, depending on the strength of existing macroeconomic buffers and degree of integration into global trade,” the report said.

East Africa is expected to lead the continent’s growth, with the region’s GDP forecast to accelerate from 4.3 per cent in 2024 to 5.9 per cent in both 2025 and 2026.

Central Africa is likely to experience a slowdown, with growth decreasing from 4.4 per cent in 2023 to 4.0 per cent in 2024 and 3.2 per cent in 2025.

In North Africa, GDP growth is forecast at 2.6 per cent in 2024, followed by slight increases to 3.6 per cent in 2025 and 3.9 per cent in 2026.

Southern Africa’s growth is estimated at 1.9 per cent in 2024, with 2.2 per cent in 2025 and 2.5 per cent in 2026.