The International Monetary Fund (IMF) has upgraded its growth outlook for several of Africa’s largest economies, including Nigeria and Egypt, signalling rising confidence in the continent’s medium-term recovery despite lingering global risks.
The International Monetary Fund is an intergovernmental financial institution that promotes global economic growth, high employment, and international monetary cooperation; secures global financial stability; facilitates international trade; and reduces global poverty.
Globally, the IMF expects the world economy to grow by 3.3% in 2026 and 3.2% in 2027, supported by technology investment, accommodative financial conditions and private-sector adaptability, even as trade policy uncertainty persists. The IMF has updated its 2026 growth projections for African economies, especially Nigeria and Egypt, due to observed economic recovery and policy reforms.
Nigeria
Nigeria’s economy is projected to expand steadily from 4.1% in 2024 to 4.2% in 2025, before accelerating to 4.4% in 2026. Growth is then expected to ease slightly to 4.1% in 2027, potentially reflecting uncertainties surrounding the upcoming Nigerian elections. This is also supported by favourable energy market trends and structural reforms.
South Africa
South Africa, however, remains the weak link among Africa’s major economies, with slow growth underscoring the drag from long-standing structural bottlenecks. The IMF revised South Africa’s 2026 growth forecast slightly higher to 1.4%, from 1.2%, with growth expected to edge up to 1.5% in 2027.
Egypt
In North Africa, the IMF raised its forecast for Egypt’s real GDP growth in the 2025/2026 fiscal year to 4.7%, up from 4.5% previously projected. Growth is expected to accelerate further to 5.4% in FY2026/2027, reflecting improved macroeconomic stability and the impact of recent reforms.
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* Source: International Monetary Fund (IMF); Business Insider Africa.
