World Bank Cuts Africa Growth Forecast to 4.1 Percent

The World Bank has downgraded its economic growth forecast for Sub-Saharan Africa for 2026, citing the destabilizing effects of the conflict between Iran and the United States as a primary driver of the slowdown. In a report published on Wednesday, the lender stated that the regional recovery is stalling due to rising costs and geopolitical instability. Growth is now projected at 4.1% for 2026, a reduction from the 4.4% forecast issued in October.

Rising prices for fuel and fertilizer, triggered by the outbreak of war in late February, have strained investment flows and exacerbated existing debt burdens. While a temporary ceasefire has been reached, the U.S. Energy Information Administration has warned that prices for energy assets, including Brent Crude Oil, may continue to rise if disruptions persist in the Strait of Hormuz.