Africa-Press – Lesotho. African economic growth will accelerate this year, thanks to public investment in agriculture and energy infrastructure seen helping shield it from the global trade war.
That’s according to the African Development Bank, which sees the region expanding 3.9% this year, up from 3.3% in 2024, and advancing by 4% in 2026.
“Even after accounting for the tariff shock and the induced uncertainty, 21 African countries will see expansion in output exceeding 5% in 2025 and four of them – Ethiopia, Niger, Rwanda and Senegal could attain the minimum 7% growth,” the AfDB said in its African Economic Outlook report.
The US in April imposed a plethora of new tariffs on its trading partners, who responded with retaliatory measures. Even though the trade taxes were later paused for 90 days, the pause has done little to dampen the potential impacts on Africa’s economies, the report released on Tuesday, said.
Stronger regional trade will help to drive manufacturing, especially in East Africa, the multilateral lender said. Separately, oil and gas production in Senegal and Niger, plus domestic demand and higher value addition in agriculture in other parts of West Africa, are helping to support economic activity, it said.
Following North Africa’s moderate growth rate of 2.6% in 2024, the sub-region is projected to grow by 3.6% in 2025 and 3.9% next year, the AfDB said.
Few countries in southern Africa, including eSwatini, Zambia and Zimbabwe are projected to grow by 6% or higher in 2025, even as Botswana and Lesotho suffer the largest growth impact from tariff uncertainty, the bank said.
For Lesotho, the tariffs will directly reduce its trade in apparel and other exports to the US, which accounts for 45% of its exports, it said
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