Sub-Saharan Africa’s economic recovery is losing momentum as rising global tensions push up costs and strain fragile economies. The World Bank now forecasts 4.1% growth for 2026, down from earlier projections, citing the ripple effects of the Iran conflict on fuel and fertilizer prices. These rising costs are compounding existing challenges, including heavy debt burdens and limited fiscal space for governments to respond. At the same time, uncertainty around investment flows and remittances—particularly from the Middle East—adds further pressure. While some regions may fare better than others, analysts warn that oil-importing and financially vulnerable countries such as Kenya and Ethiopia face the greatest risks, highlighting a tougher path ahead for the continent’s growth.
CNBC Africa
