Davos– The World Economic Forum (WEF) economists have shared a cautiously optimistic outlook for Sub-Saharan Africa’s (SSA) economy in 2026, marking modest improvements from the previous year. However, they also warned that elevated risks continue to hover over the region amid global uncertainty.
In their January 2026 assessment, the WEF economists pointed to a slight improvement in sentiment toward SSA, with stabilising global growth and easing inflation in some markets contributing to the positive shift. Nevertheless, geopolitical tensions, high debt levels, currency volatility, and fragile asset valuations still present significant challenges for many emerging economies.
While macroeconomic risks are expected to be more severe in emerging markets, such as those in SSA, than in developed economies, the economists urged nations to focus on stronger domestic revenue mobilisation, prudent monetary policy, transparent policy communication, and deep structural reforms. They also stressed the importance of improved governance and increased trade integration, particularly through the African Continental Free Trade Area (AfCFTA).
Eswatini’s economic outlook remains broadly positive, but with certain uncertainties. Strong growth is expected in 2025 and 2026, bolstered by substantial receipts from the Southern African Customs Union (SACU), increased construction activity, investments in the energy sector, and economic spillover from South Africa. However, the WEF identified several downside risks that could undermine the country’s medium-term prospects.
“Persistent political uncertainty and calls for reform may dampen private sector investment, while climate-related shocks linked to El Niño continue to threaten agricultural output and agro-processing supply chains,” the economists noted. They also flagged concerns about financing gaps, as tax revenue growth lags behind the level needed to meet Eswatini’s long-term development goals.
The WEF report concluded that Eswatini’s economic sustainability depends on accelerating diversification beyond agriculture, strengthening manufacturing and services, and fostering investment by improving transparency and adhering to international standards. How the country addresses its internal challenges while navigating the broader regional economic context will be key to its prospects.
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