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Africa Economic Update, April 2026: Making Industrial Policy Work in Africa
Sub-Saharan Africa’s economic recovery from successive global shocks is losing momentum, with growth projections for 2026 revised downward from those published in October 2025. Geopolitical spillovers from the conflict in the Middle East, high debt service burdens, and structural weaknesses are limiting growth prospects and job creation.
Against this backdrop, the report argues that Africa’s growth challenge is structural, reflected in low investment, weak productivity, and limited job creation. While interest in industrial policy has revived, past efforts often failed due to weak implementation capacity, fiscal and institutional constraints. The report proposes a pragmatic, ecosystem based approach that aligns policy tools with country capabilities to deliver productivity gains and durable structural transformation.
Against this backdrop, the report argues that Africa’s growth challenge is structural, reflected in low investment, weak productivity, and limited job creation. While interest in industrial policy has revived, past efforts often failed due to weak implementation capacity, fiscal and institutional constraints. The report proposes a pragmatic, ecosystem based approach that aligns policy tools with country capabilities to deliver productivity gains and durable structural transformation.
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