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Africa’s Rebound Centers on Nigeria and South Africa as IMF Sees 2026 Growth Beating Asia

Early gains have yet to reach most households, with recoveries still uneven across countries.

Overview

  • A new IMF outlook projects Africa’s 2026 economic growth will outpace Asia for the first time on record.
  • High prices for key commodities and a softer dollar are supporting the regional upswing and easing external financing pressures.
  • Nigeria’s reforms after subsidy removal—rate hikes, a more open exchange rate, and fewer food import restrictions—slowed inflation that had neared 35% by mid‑2024.
  • South Africa’s power crisis has eased for large firms after Operation Vulindlela reforms at Eskom, yet public services remain strained and unemployment stays above 30%.
  • Near‑term export openings include a one‑year U.S. AGOA extension for South Africa and new trade talks with China, while analysts urge moving past the simplistic ‘Africa Rising’ narrative.