African economies face growth potential amid aid declines and resource exploitation risks

The International Monetary Fund (IMF) forecasts that African economies will grow by 4.5 percent this year, with a recovery to 5 percent expected by 2027. Despite weathering energy crises, the continent remains vulnerable due to a sharp decline in development assistance, which is projected to fall by another 12 percent this year. Zeine Zeidane, head of the IMF’s Africa department, noted that risks such as energy supply disruptions, global risk aversion, and El Nino could intensify economic pressures.

Simultaneously, the African Group at the United Nations is calling for an end to resource exploitation. During a UN General Assembly debate, representatives emphasized that the continent must retain more value from its critical minerals to drive industrialization and economic transformation. The Group highlighted that illicit financial flows and the export of raw materials prevent resource wealth from improving infrastructure, healthcare, and education. Addressing a sovereignty deficit estimated at US$2.1 trillion remains a primary challenge for the continent's sustainable growth.