Southern Africa's Economic Growth Set to Slow in 2026

The African Development Bank's (AFDB) Regional Economic Outlook report indicates that Southern Africa's economy is projected to slow from 2.3% in 2025 to 2.1% in 2026.

This slowdown in growth is attributed to structural constraints, including limited economic diversification and infrastructure deficits. Low domestic resource mobilization also plays a significant role in hindering growth.

However, the report expects Southern Africa's economy to rebound to 2.7% in 2027, driven by stronger household consumption and improved services activity.

The Middle East conflict is likely to slow regional growth through higher oil prices, trade disruptions, and tighter global financial conditions, according to the AFDB.