West Africa demonstrated economic resilience in 2025, recording growth of 4.8%, above the continental average of 4.4%, amid geopolitical tensions, insecurity in parts of the region, increasing fragmentation of the global economy and heightened volatility in international financial markets. These were among the major highlights of the African Development Bank Group's 2026 West Africa Regional Economic Outlook and the 2026 Côte d'Ivoire Country Focus Report.
The region's outlook remains promising, with growth projected at 4.6% in 2026, driven by stronger private investment, recovering domestic demand, continued infrastructure investments and expansion in the oil, gas and mining sectors. However, prolonged geopolitical tensions, persistent global inflation, rising public debt vulnerabilities and tighter financial conditions could weigh on this positive outlook
Both reports were launched on 28 July in Abidjan.
Côte d'Ivoire remains the largest economy in the West African Economic and Monetary Union (WAEMU) and is expected to grow by 6.5% in 2025. The Country Focus Report (CFR) further notes that its economic momentum remains strong.
Maintaining the momentum for Cote d'Ivoire will require greater resource mobilisation and continued reforms. Trade tensions, geopolitical uncertainty, inflationary pressures and tighter international financing conditions could weigh on growth and investment prospects.
The report argues that Côte d'Ivoire's ambition to attain upper-middle-income status by 2030 will depend on its ability to accelerate structural transformation through industrialisation, private-sector development and expanded fiscal space.
To support this ambition, the Country Focus Report highlights several priorities, including greater formalisation of the economy, improved property and mining taxation, better taxation of electronic commerce, continued financial-sector reforms and stronger mobilisation of domestic and external investment.
"Our ambition is not limited to generating growth. It is about transforming that growth into jobs, stronger human capital, higher productivity, and shared prosperity. The findings of these reports reinforce the importance of mobilizing public and private resources at scale to support the successful implementation of Côte d'Ivoire's National Development Plan 2026-2030 and accelerate structural transformation," said Loesse J. Esso, Chief of Staff at the Ministry of Planning and Development, on behalf of the country's Minister of Planning and Development Souleymane Diarrassouba.
West Africa can finance its annual development gap if measures are taken to mobilise its own resources
The reports also postulate that West Africa can close its estimated US$90-100 billion annual development financing gap by mobilising more domestic resources, strengthening public financial management, and channelling local capital into productive investments.
The reports argue that the region's financing challenges stem less from a shortage of capital than from the fragmentation and underutilization of existing financial resources. They call for reforms that mobilise domestic revenues, strengthen financial intermediation and harness the long-term local resources needed for structural transformation that gives impetus to inclusive growth.
"West Africa's challenge is not simply the volume of resources available to finance development. The challenge is how those resources are mobilized and deployed to transformative investments that create jobs, strengthen resilience and improve livelihoods. These reports show that the region has the opportunity to turn fragmented pools of capital into long-term investments that accelerate structural transformation," said Joseph Ribeiro, Deputy Director General for West Africa and Country Manager for Cote d'Ivoire.
"The reports show that West Africa's financing gap is not driven solely by a lack of resources. Significant opportunities exist to broaden the tax base, formalize informal sector, improve public investment efficiency, and channel long-term resources from institutional investors towards productive investments. These reforms can help countries mobilize financing at the scale needed to sustain growth and improve development outcomes," noted Marcellin Ndong Ntah, Lead Economist for West Africa.
The regional economic outlook report finds that West Africa's average tax-to-GDP ratio was 9.9% over the past five years, well below the 20% WAEMU convergence benchmark. According to the report, this limits governments' ability to finance development priorities and build fiscal resilience.
The report argues that strengthening domestic resource mobilisation is therefore critical to expanding fiscal space and reducing financing constraints.
To address these challenges, the report identifies four priority actions: broadening the tax base, improving the management of natural-resource revenues, formalising informal economic activity, and directing pension and insurance savings towards long-term productive investmen
The two reports also highlight the need for stronger regional financial integration, including deeper capital markets through institutions such as the West African Regional Stock Exchange (BRVM). More integrated financial markets, stronger payment systems and greater mobilisation of domestic savings can help unlock long-term investment across the region.
Together, the reports deliver a clear message: West Africa can strengthen its financial sovereignty by mobilising its own resources, unlocking long-term investment and making better use of the capital already available to promote inclusive growth.
