Afreximbank Projects Egypt's Economy to Grow by 3.8% in 2025
Taarek Refaat
The African Export-Import Bank (Afreximbank) has projected Egypt's economy to grow by 3.8% in 2025, according to its 2025 African Trade Report, released during the bank's 32nd Annual Meetings in Abuja.
The report, titled 'African Trade in a Changing Global Financial Landscape,' outlines cautious optimism for the continent's economic outlook.
Regional Growth Momentum
According to the report, Africa's overall economic growth is expected to accelerate to 4% in 2025, up from 3.2% in 2024, and potentially reaching 4.2% in 2026, despite mounting global economic uncertainty and structural challenges.
Several key economies are set to contribute to this growth, including:
-Egypt at 3.8%
-Algeria at 3.5%
-Ethiopia at 6.1%
-Morocco at 3.9%
Tanzania and Uganda, each projected at 6%
The report attributes Africa's improved economic outlook to a combination of supportive factors. Chief among these is the rising global demand for African exports, which continues to strengthen the continent's trade performance and foreign exchange earnings. In parallel, inflationary pressures are easing in many African economies, helping to restore household purchasing power and stimulate private consumption.
Additionally, favorable monetary policies across the continent are making credit and investment more accessible, particularly for businesses and infrastructure development. The report also highlights the positive impact of structural reforms being implemented in several countries, aimed at reducing reliance on primary commodities and fostering more diversified, resilient economic models.
Despite these encouraging trends, the report warns that risks to the outlook remain tilted to the downside. Heightened geopolitical tensions, including regional conflicts and instability, pose a threat to investor confidence and cross-border cooperation.
Moreover, the potential escalation of global trade disputes could undermine Africa's export growth and integration into international markets. Finally, rising uncertainty around fiscal and regulatory policies—both within Africa and among its key trading partners—may deter investment and complicate economic planning.
Slowdowns in major economies such as China and the United States, which continue to dampen global financial conditions and reduce demand for African commodities
The report highlights that the continued implementation of the African Continental Free Trade Area (AfCFTA) could mitigate external shocks by strengthening intra-African trade, investment flows, and regional integration, thereby boosting economic activity across the continent.
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