African economies have weathered the energy crisis linked to the Iran conflict, but falling foreign aid could weaken their ability to withstand future economic shocks, the International Monetary Fund (IMF) said Thursday.

The fund forecasts Africa's economy will grow by 4.5% this year and 5% in 2027. However, development assistance to the continent is expected to fall by 12% this year, following a sharp decline in 2025.

Zeine Zeidane, head of the IMF's Africa department, warned that further energy disruptions, global financial uncertainty, extreme weather and ongoing conflicts could worsen economic pressures and threaten food security.

Despite the risks, rising demand for critical minerals and economic reforms present opportunities for growth. African finance ministers at IMF and World Bank meetings in Bangkok emphasized the need to create jobs, diversify economies and expand local processing of natural resources.

Guinea is counting on its Simandou iron ore project and a railway linking the mines to the coast to stimulate economic transformation. Meanwhile, Burkina Faso and other West African countries are pursuing policies to retain more value from mineral resources, including gold, cobalt and copper.

The IMF also identified artificial intelligence as a potential growth driver, estimating that its adoption and expansion could boost economic growth by more than 4% over the next decade. Agriculture, education, healthcare and public services are among the sectors expected to benefit.

With input from wires