South Africa’s economy contracted for the first time in nearly two years, with GDP falling 0.2% in the second quarter of 2026.

The downturn was driven by weakness across key sectors, including mining, manufacturing and trade. Mining output declined 3%, while manufacturing contracted 1.8% for its third consecutive quarterly decline. Trade also fell 1.9%, ending six consecutive quarters of growth.

Investment declined for a second straight quarter as businesses and public corporations reduced capital spending. The economy also shed 345,000 jobs during the quarter, while unemployment remained above 33%.

The slowdown comes as South Africa faces a politically sensitive period ahead of local government elections in November. Opposition parties are expected to target the government over weak growth, unemployment and rising living costs.

Economists now expect annual growth of around 1.2% to 1.5%, below the government’s earlier target.


South Africa Economy Crisis | GDP Contracts 0.2% As Jobs, Investment Take Hit

Africa has become the continent with the highest number of people suffering from hunger, according to the UN's latest State of Food Security and Nutrition in the World 2026 report. Nearly 309 million Africans, or 20% of the continent's population, are facing undernourishment despite a slight improvement in hunger rates.

The report highlights that 66.6% of Africans cannot afford a healthy diet, more than double the level recorded in Asia. Climate change, armed conflicts, economic hardship, rising food prices, and the impact of the Iran conflict on energy and fertilizer costs have worsened food insecurity across the continent.

Africa becomes world's hunger epicentre | 309 Million face food crisis | UN report 2026

Africa has become the continent with the highest number of people suffering from hunger, according to the UN's latest State of Food Security and Nutrition in the World 2026 report. Nearly 309 million Africans, or 20% of the continent's population, are facing undernourishment despite a slight improvement in hunger rates.

The report highlights that 66.6% of Africans cannot afford a healthy diet, more than double the level recorded in Asia. Climate change, armed conflicts, economic hardship, rising food prices, and the impact of the Iran conflict on energy and fertilizer costs have worsened food insecurity across the continent.


The economic growth of Sub-Saharan Africa is poised to slow down this year, largely due to the underperformance of economic powerhouses like South Africa, Nigeria, and Angola, as per the latest report from the World Bank, released on Wednesday.&nbsp;

The report reveals that regional economic growth is expected to decrease to 2.5 per cent in 2023, down from 3.6 per cent recorded last year. However, there is hope, with projections indicating a rebound to 3.7 per cent next year and 4.1 per cent in 2025.&nbsp;

One concerning trend highlighted in the report is the lack of positive per capita growth in the region since 2015. Despite a rapid increase in population, economic activity in African countries has failed to keep pace. The result is a growing gap between population growth and job creation.&nbsp;

According to the World Bank's "Africa's Pulse" report, approximately 12 million Africans join the labour market annually, but the current economic growth patterns only generate around 3 million formal sector jobs. This, in turn, places a significant burden on the region's most vulnerable and impoverished individuals.&nbsp;

Reuters cited Andrew Dabalen, the Chief Economist for Africa at the World Bank, who expressed his concerns, stating, "The region's poorest and most vulnerable people continue to bear the economic brunt of this slowdown, as weak growth translates into slow poverty reduction and poor job growth."&nbsp;

In a worrisome trend, more than half of the region's countries, precisely 28 out of 48, have seen a downward revision in their 2023 growth forecasts compared to the World Bank's April estimates.&nbsp;

South Africa, the most developed economy on the continent, is expected to experience a 0.5 per cent growth this year, primarily due to its ongoing energy crisis. Similarly, top oil producers Nigeria and Angola are projected to witness growth slowdowns, with rates of 2.9 per cent and 1.3 per cent, respectively.&nbsp;

The report also highlights the dire situation in Sudan, where a major internal armed conflict has led to infrastructure destruction and a stagnant economy, resulting in a projected 12 per cent contraction.&nbsp;

Excluding Sudan from the equation, the regional growth would be slightly more promising, at 3.1 per cent.&nbsp;

"The region is projected to contract at an annual average rate per capita of 0.1 per cent over 2015-2025, thus marking a lost decade of growth in the aftermath of the 2014-15 plunge in commodity prices," the report stated.&nbsp;

Additionally, while inflation in sub-Saharan Africa is expected to decrease to 7.3 per cent this year from 9.3 per cent in 2022, it remains above central bank targets in most countries.&nbsp;

Moreover, recent military coups in Niger and Gabon, along with army takeovers in Guinea, Mali, and Burkina Faso, and ongoing armed conflicts in the Democratic Republic of Congo, Ethiopia, Somalia, and Sudan, have introduced additional risks to stability in Africa.&nbsp;

Furthermore, the mounting debt crisis is putting immense strain on the region's resources, with a staggering 31 per cent of regional revenues being consumed by interest and loan payments in 2022.&nbsp;

(With inputs from Reuters)&nbsp;

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The economic growth of Sub-Saharan Africa is poised to slow down this year, largely due to the underperformance of economic powerhouses like South Africa, Nigeria, and Angola, as per the latest report from the World Bank, released on Wednesday.

The economic growth of Sub-Saharan Africa is poised to slow down this year, largely due to the underperformance of economic powerhouses like South Africa, Nigeria, and Angola, as per the latest report from the World Bank, released on Wednesday. The report reveals that regional economic growth is expected to decrease to 2.5 per cent in 2023, down from 3.6 per cent recorded last year. However, there is hope, with projections indicating a rebound to 3.7 per cent next year and 4.1 per cent in 2025. One concerning trend highlighted in the report is the lack of positive per capita growth in the region since 2015. Despite a rapid increase in population, economic activity in African countries has failed to keep pace. The result is a growing gap between population growth and job creation. According to the World Bank's "Africa's Pulse" report, approximately 12 million Africans join the labour market annually, but the current economic growth patterns only generate around 3 million formal sector jobs. This, in turn, places a significant burden on the region's most vulnerable and impoverished individuals. Reuters cited Andrew Dabalen, the Chief Economist for Africa at the World Bank, who expressed his concerns, stating, "The region's poorest and most vulnerable people continue to bear the economic brunt of this slowdown, as weak growth translates into slow poverty reduction and poor job growth." In a worrisome trend, more than half of the region's countries, precisely 28 out of 48, have seen a downward revision in their 2023 growth forecasts compared to the World Bank's April estimates. South Africa, the most developed economy on the continent, is expected to experience a 0.5 per cent growth this year, primarily due to its ongoing energy crisis. Similarly, top oil producers Nigeria and Angola are projected to witness growth slowdowns, with rates of 2.9 per cent and 1.3 per cent, respectively. The report also highlights the dire situation in Sudan, where a major internal armed conflict has led to infrastructure destruction and a stagnant economy, resulting in a projected 12 per cent contraction. Excluding Sudan from the equation, the regional growth would be slightly more promising, at 3.1 per cent. "The region is projected to contract at an annual average rate per capita of 0.1 per cent over 2015-2025, thus marking a lost decade of growth in the aftermath of the 2014-15 plunge in commodity prices," the report stated. Additionally, while inflation in sub-Saharan Africa is expected to decrease to 7.3 per cent this year from 9.3 per cent in 2022, it remains above central bank targets in most countries. Moreover, recent military coups in Niger and Gabon, along with army takeovers in Guinea, Mali, and Burkina Faso, and ongoing armed conflicts in the Democratic Republic of Congo, Ethiopia, Somalia, and Sudan, have introduced additional risks to stability in Africa. Furthermore, the mounting debt crisis is putting immense strain on the region's resources, with a staggering 31 per cent of regional revenues being consumed by interest and loan payments in 2022. (With inputs from Reuters) WATCH WION LIVE HERE

Sub-Saharan Africa faces economic slowdown as key players falter, World Bank warns 

22 countries in Sub-Saharan Africa have French as their official language, with a population of 300 million people. Francophone countries are predominantly located in central and western Africa. According to Victor Lopes an economist from Standard Charter Bank, Francophone Africa constitutes 15% of Africa’s GDP and receives approximately 20% of foreign investments that are directed to Africa. Despite all this, South African companies are reluctant to do business in this region. However, this region is too dynamic to be ignored.

The World Bank predicted, that, by 2021, 62.5% of Africa’s fastest growing economies will be in Francophone Africa. Currently, it boasts five out of the ten fastest-growing economies in Sub-Saharan Africa, namely, Côte d’Ivoire 7%, Senegal 6.7%, Benin 6.3%, Burkina Faso 6% and Guinea 5.9%. In the South African context, there is huge potential for mining and extraction of natural resources. It is an emerging mining region with countries such as Côte d'Ivoire, Burkina Faso, Guinea and Mali being earmarked as countries that will be leading the mining growth. The region is endowed with vast natural resources: Côte d'Ivoire is the leading producer of cocoa, Mali is the second largest producer of Shea nuts, DRC has the world's largest reserves of coltan and cobalt, and several countries in the region are trying to revitalize their coffee, palm oil and cotton production.

Some businesses are deterred from doing business in Francophone countries because they believe that the political volatility in the region will hinder their businesses. These issues have been taken seriously and addressed, in order to attract business in their countries. According to the 2018 World Bank's annual Ease of Doing Business report assesses that: French-speaking countries achieved especially notable results. The report recognized Togo and Côte d'Ivoire as among "the 10 economies improving the most across three or more areas measured by Ease of Doing Business in 2017/18. There are two major factors that make doing business in Francophone Africa easier. Firstly, the implementation of the Organization for Harmonization of Business Law in Africa (OHADA). OHADA is a legal system that has created homogeneousness amongst member states, which has subsequently created accountability and transparency. Secondly, there is a single currency in the West and Central African CFA, these currencies are both pegged to the Euro, and they offer currency stability.

The misconception that France still has a huge influence and is their main trade partner is still prevalent. There are still strong ties to France but, they are diminishing, because the region is globalizing like other regions of the world. Statistics from UN Comtrade reveal that the French share of exports to Francophone Africa has declined steadily from 13.6% of the total in 2010 to just 9.4% by 2017.&nbsp;Moreover, many companies are also increasingly including English as a business language.

However, much of Francophone Africa is largely underdeveloped and lacks good infrastructure. It is problematic to get the resources to market, without the proper infrastructure to process or transport them. Amidst these challenges are opportunities for companies to invest in the infrastructure sector in the region and these opportunities in this region will trickle down to all sectors.

Additionally, the return of African Development Bank (AfDB) to Abidjan from Tunis was an illustration of confidence in the country and the region. The presence of the AfDB has attracted other funding agencies to have a major presence in the region. With the aforementioned information, it is vital for businesses to explore this overlooked economic jewel.

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

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22 countries in Sub-Saharan Africa have French as their official language, with a population of 300 million people. Francophone countries are predominantly located in central and western Africa.

22 countries in Sub-Saharan Africa have French as their official language, with a population of 300 million people. Francophone countries are predominantly located in central and western Africa. According to Victor Lopes an economist from Standard Charter Bank, Francophone Africa constitutes 15% of Africa’s GDP and receives approximately 20% of foreign investments that are directed to Africa. Despite all this, South African companies are reluctant to do business in this region. However, this region is too dynamic to be ignored. The World Bank predicted, that, by 2021, 62.5% of Africa’s fastest growing economies will be in Francophone Africa. Currently, it boasts five out of the ten fastest-growing economies in Sub-Saharan Africa, namely, Côte d’Ivoire 7%, Senegal 6.7%, Benin 6.3%, Burkina Faso 6% and Guinea 5.9%. In the South African context, there is huge potential for mining and extraction of natural resources. It is an emerging mining region with countries such as Côte d'Ivoire, Burkina Faso, Guinea and Mali being earmarked as countries that will be leading the mining growth. The region is endowed with vast natural resources: Côte d'Ivoire is the leading producer of cocoa, Mali is the second largest producer of Shea nuts, DRC has the world's largest reserves of coltan and cobalt, and several countries in the region are trying to revitalize their coffee, palm oil and cotton production. Some businesses are deterred from doing business in Francophone countries because they believe that the political volatility in the region will hinder their businesses. These issues have been taken seriously and addressed, in order to attract business in their countries. According to the 2018 World Bank's annual Ease of Doing Business report assesses that: French-speaking countries achieved especially notable results. The report recognized Togo and Côte d'Ivoire as among "the 10 economies improving the most across three or more areas measured by Ease of Doing Business in 2017/18. There are two major factors that make doing business in Francophone Africa easier. Firstly, the implementation of the Organization for Harmonization of Business Law in Africa (OHADA). OHADA is a legal system that has created homogeneousness amongst member states, which has subsequently created accountability and transparency. Secondly, there is a single currency in the West and Central African CFA, these currencies are both pegged to the Euro, and they offer currency stability. The misconception that France still has a huge influence and is their main trade partner is still prevalent. There are still strong ties to France but, they are diminishing, because the region is globalizing like other regions of the world. Statistics from UN Comtrade reveal that the French share of exports to Francophone Africa has declined steadily from 13.6% of the total in 2010 to just 9.4% by 2017. Moreover, many companies are also increasingly including English as a business language. However, much of Francophone Africa is largely underdeveloped and lacks good infrastructure. It is problematic to get the resources to market, without the proper infrastructure to process or transport them. Amidst these challenges are opportunities for companies to invest in the infrastructure sector in the region and these opportunities in this region will trickle down to all sectors. Additionally, the return of African Development Bank (AfDB) to Abidjan from Tunis was an illustration of confidence in the country and the region. The presence of the AfDB has attracted other funding agencies to have a major presence in the region. With the aforementioned information, it is vital for businesses to explore this overlooked economic jewel. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

Francophone Africa: The dynamic but overlooked African economic jewel

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South Africa Economy Crisis | GDP Contracts 0.2% As Jobs, Investment Take Hit

Africa becomes world's hunger epicentre | 309 Million face food crisis | UN report 2026

Africa becomes world's hunger epicentre | 309 Million face food crisis | UN report 2026

Sub-Saharan Africa faces economic slowdown as key players falter, World Bank warns

Francophone Africa: The dynamic but overlooked African economic jewel