AfDB Pushes Africa to Unlock Local Financing as Global Pressures Weigh on Growth

African countries are being urged to accelerate financing reforms and strengthen domestic resource mobilisation as global economic pressures continue to weigh on the continent’s growth outlook.

The call comes in the 2026 African Economic Outlook released at the African Development Bank Group Annual Meetings in Brazzaville, which argues that stronger internal financing systems will be critical in sustaining growth amid weaker external financial flows, inflation, and market volatility.

According to the report, Africa’s economies are projected to grow by 4.2 per cent in 2026, down from 4.4 per cent in 2025, before recovering to 4.4 per cent in 2027. Despite the slowdown, the Bank maintains that Africa remains among the world’s fastest-growing regions even as geopolitical tensions, tighter global financial conditions, inflationary pressure and supply chain disruptions persist.

At the centre of the recommendations is a push to reduce dependence on external financing by expanding domestic sources of capital.

The Bank is calling for stronger tax collection systems, improved public investment management, tougher action against illicit financial flows and deeper financial markets to unlock more resources for development.

AfDB estimates the continent could mobilise up to $1.43 trillion annually through improved revenue mobilisation, capital market development, public-private partnerships, natural capital and diaspora financing.

The report further estimates that stronger tax and non-tax mobilisation alone could generate $469 billion each year, while better public investment efficiency could save nearly $299 billion annually.

To support long-term resilience, the Bank is also encouraging governments to strengthen the New African Financial Architecture for Development, attract more institutional capital into infrastructure and productive sectors, and expand continental tools including the African Financing Stability Mechanism and the African Credit Rating Agency.

Inflation across Africa is forecast at 10.4 per cent in 2026, with energy disruptions, exchange rate volatility and declining external financing identified as key risks.