IMF says African economies showing resilience amid challenges

By the Editorial Team · Friday, October 16, 2026

African economies have shown steady growth despite the energy crisis linked to the Iran conflict, but a sharp decline in international aid has left the continent vulnerable to future shocks, the IMF reported. The IMF highlighted that while AI adoption could boost growth by over 4% in the next decade, ongoing risks such as climate events and insecurity still threaten Africa’s economic stability.

African economies have demonstrated resilience in navigating the energy crisis triggered by the conflict involving Iran, but a significant reduction in international aid has increased the continent’s vulnerability to future economic shocks, the International Monetary Fund (IMF) stated on Thursday.

Zeine Zeidane, head of the IMF’s Africa department, made the comments during a meeting of the IMF and World Bank held in Bangkok. He highlighted that economic growth in Africa is projected to reach 4.5% this year, slightly above earlier forecasts, with expectations to rebound to 5% by 2027. Despite this growth, development assistance to the region has declined sharply, with a further 12% decrease anticipated this year.

“That leaves the region with little room to absorb another shock,” Zeidane said, noting that renewed disruptions in energy supplies, heightened global risk aversion, or severe climate events such as a strong El Niño could exacerbate economic pressures.

Ongoing conflict and insecurity across parts of Africa continue to impede economic progress and threaten food security in some regions, according to Zeidane. While risks remain predominantly on the downside, he acknowledged the continent’s capacity to adapt and advance despite these challenges.

Several African countries have implemented reforms aimed at strengthening economic resilience. Concurrently, some nations are benefiting from increased global demand and rising prices for critical minerals used in advanced technologies, including artificial intelligence (AI). The IMF has advised these countries to manage such windfalls prudently and to leverage AI to enhance their competitiveness in global markets.

While the long-term effects of AI adoption on African economies remain uncertain, the IMF forecasts that the integration and expansion of AI technologies could boost economic growth by over 4% across the next decade. Zeidane emphasized that the benefits of AI extend beyond immediate economic gains; its application could significantly improve productivity, particularly in sectors such as agriculture, education, health, and government services, where current output and efficiency lag behind international standards.

The IMF’s outlook underscores both the potential and the risks facing Africa as it navigates a complex global landscape marked by geopolitical tensions, climatic variability, and evolving technological opportunities.

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