West Africa Growth Holds Strong as Financing Gap Tops $90bn

The figures were published in the 2026 West Africa Regional Economic Outlook and the 2026 Côte d’Ivoire Country Focus Report, launched in Abidjan on 28 July.

West Africa's economy showed resilience during a difficult global environment in 2025, expanding by 4.8% and outperforming Africa's overall growth rate of 4.4%, according to new reports from the African Development Bank Group.

The figures were published in the 2026 West Africa Regional Economic Outlook and the 2026 Côte d'Ivoire Country Focus Report, launched in Abidjan on 28 July. Growth came despite geopolitical tensions, security concerns in parts of the region, volatile international financial markets and growing fragmentation across the global economy.

Economic activity across West Africa is projected to grow by 4.6% in 2026, supported by stronger private investment, recovering domestic demand, continued infrastructure spending and expansion across oil, gas and mining. Risks remain around high public debt, global inflation, tighter access to finance and geopolitical uncertainty, which could place pressure on investment and government finances.

Côte d'Ivoire Targets Upper-Middle-Income Status

Côte d'Ivoire remains the largest economy in the West African Economic and Monetary Union, with growth expected at 6.5% in 2025 as the country continues to build on strong economic momentum. Reaching upper-middle-income status by 2030 will require more than maintaining headline growth, with the Country Focus Report pointing to industrialisation, stronger private-sector development and greater fiscal capacity as key parts of the country's economic transformation.

The report recommends bringing more economic activity into the formal sector, improving property and mining taxation, strengthening taxation of electronic commerce and continuing financial-sector reforms. Increasing domestic and international investment will also be important for funding the country's development plans.

Loesse J. Esso, Chief of Staff at the Ministry of Planning and Development, said Côte d'Ivoire wants economic growth to translate into jobs, stronger human capital, improved productivity and prosperity that reaches a wider share of the population.

Region Faces Annual Financing Gap of Up to $100bn

West Africa needs between US$90 billion and US$100 billion in additional development financing each year, yet the African Development Bank reports suggest much of that gap could be addressed by making better use of resources already available within the region.

The challenge is linked partly to fragmented and underused capital rather than simply an absence of money. Governments could generate greater development funding by collecting more domestic revenue, improving public financial management and directing local savings towards investments capable of supporting jobs and economic transformation.

West Africa's average tax-to-GDP ratio stood at just 9.9% during the past five years, considerably below the 20% convergence benchmark used by WAEMU. Low revenue collection restricts the amount governments can spend on development priorities while making it harder to build financial buffers against future economic shocks.

Tax and Investment Reforms Could Unlock Local Capital

Four areas have been identified for greater attention across the region: widening the tax base, improving management of revenue generated from natural resources, formalising more informal economic activity and directing pension and insurance savings towards productive long-term investments.

Stronger regional financial integration could provide another source of capital, particularly through deeper markets supported by institutions such as the West African Regional Stock Exchange, known as BRVM. Better-connected financial markets and payment systems could make it easier for savings generated in the region to reach businesses and infrastructure projects needing investment.

African Development Bank officials said West Africa has significant opportunities to improve the way existing resources are collected and invested, giving countries greater control over development financing while reducing dependence on increasingly expensive external funding. The reports suggest that turning those resources into productive investment could help the region maintain economic growth while creating jobs, strengthening resilience and improving living standards across West African economies.