Africa’s battle against inflation is far from over, as price pressures persist across many countries despite aggressive monetary tightening by central banks. According to the African Development Bank (AfDB) 2025 Macroeconomic Performance and Outlook Report, Africa’s annual inflation rate surged to 18.6% in 2024, the highest in decades, before an expected decline to 12.6% in 2025–2026.
The AfDB report attributes the inflation surge to multiple factors, including post-COVID-19 economic recovery, which led to increased demand, and global food and energy price hikes driven by geopolitical instability. Additionally, currency depreciation across the continent has made imports more expensive, further fueling inflation.
Extreme weather events, such as floods and droughts, have also negatively impacted agricultural productivity, leading to higher food prices. While inflation has eased in some parts of the world, Africa remains more vulnerable due to structural weaknesses and external shocks.
The West African region recorded the highest inflation rate in 2024 at 22.5%, with Nigeria‘s inflation surging to 32.4% due to currency depreciation, fuel price hikes, and supply disruptions. North Africa followed closely at 20.6%, with Egypt’s inflation reaching 33.6%, primarily driven by the devaluation of the Egyptian pound and ongoing fuel subsidy cuts. In Southern Africa, inflation rose to 12.1% in 2024, mainly due to sharp increases in Angola (28.5%) and Zimbabwe (55.7%). Malawi also recorded a high inflation rate of 33.4%.
Conversely, Central Africa and East Africa saw inflation decline, with notable improvements in Cameroon, the Democratic Republic of Congo, and Rwanda. However, Sudan recorded an extreme inflation rate of 176.6%, driven by ongoing conflict disrupting supply chains and food distribution.
Africa’s inflation contrasts sharply with global trends, where headline inflation is expected to decline from 6.7% in 2023 to 5.7% in 2024 and 4.2% in 2025. In advanced economies, inflation has dropped from 4.6% in 2023 to 2.6% in 2024, supported by lower energy prices and improved labor supply.
To curb inflation and stabilize economies, the AfDB calls for stronger monetary policies to control currency depreciation. The report also highlights the need for structural reforms to improve food production and supply chains, which would help stabilize food prices. Additionally, debt reduction strategies must be implemented to ease fiscal pressures, allowing governments to allocate more resources toward economic growth. Regional cooperation is also essential in enhancing trade and investment across the continent to boost economic stability.
Despite these efforts, the AfDB warns that inflation may remain stubbornly high in some economies due to ongoing external shocks, weak monetary policy transmission, and high public debt levels.
