Africa’s two biggest economies are expected to remain on relatively firmer footing this year as growth slows across the rest of sub-Saharan Africa (SSA), according to the International Monetary Fund’s latest World Economic Outlook.
Nigeria’s economy is projected to grow to 4.1 percent in 2026, unchanged from the IMF’s April forecast, before accelerating to 4.3 percent in 2027. South Africa’s growth forecast was revised up by 0.1 percentage point to 1.1 percent, although the economy is expected to expand faster at 1.3 percent in 2027.
The July report released on Wednesday noted that SSA’s economy is expected to grow to 4.3 percent, broadly unchanged from earlier projections. However, the regional headline conceals widening differences among countries, with growth in the rest of the region expected to slow to 5.2 percent in 2026 and 2027 from 5.6 percent in 2025.
“While growth in Sub-Saharan Africa is expected to remain broadly stable, this masks substantial divergence across countries,” the report said, citing differences in policy space, reform implementation and exposure to external shocks.
Nigeria’s outlook is being supported by improved macroeconomic stability and favourable terms of trade, the Fund said. But it warned that higher prices for essential goods could worsen poverty and food insecurity, underscoring the fragile nature of the country’s recovery.
