South Africa, Egypt, and Nigeria are set to dominate Africa’s nominal GDP rankings in 2026, according to new projections from the International Monetary Fund (IMF). South Africa is forecast to remain the continent’s largest economy at 443.64 billion US dollars, followed by Egypt at 399.51 billion US dollars and Nigeria close behind at 334.34 billion US dollars.

Nigeria, which fell from first to fourth place over the past decades due to prolonged economic challenges, has regained momentum through fiscal reforms, naira stabilisation efforts, the removal of fuel subsidies, and higher oil production. Despite these measures, the country faces continued social and economic pressures.

Abebe Selassie, director of the IMF’s African Department, said overall growth in Sub-Saharan Africa is expected to stabilise at 4.1 per cent in 2025, with a modest pickup projected for 2026. He noted that global headwinds—including weaker commodity prices, softer external demand, and tighter financial markets—remain a challenge to the region’s recovery.

Nigeria’s economy is projected to expand by 3.9 percent in 2025, but inflation, foreign exchange volatility, and productivity constraints underline the need for continued reform. The IMF emphasised that sustained macroeconomic and fiscal discipline will be essential for Nigeria to consolidate its position and improve living standards.