The continent of Africa is beautiful and endowed with an abundance of natural resources, raw materials, precious metals, and fertile land. According to the most recent United Nations estimates as of 2023, the entire African continent has a population of more than 1.43 billion people. With consistent growth and improvement, the African economy is expected to reach a GDP of $29 trillion by 2050, playing a significant role in the global economy. The World Bank anticipates that most African countries will achieve “middle income” status, with a GDP per capita of at least $1,000, within the next decade. Despite some challenges, African countries include some of the fastest-growing economies in the world. According to a new African Development Bank report, Africa will outperform the rest of the world in economic growth over the next two years, with real GDP averaging around 4% in 2023 and 2024. This is higher than the projected global averages of 2.7% and 3.2%, according to Africa’s Macroeconomic Performance and Outlook report for the region.
The African economy is expected to reach $11.34 trillion in GDP by 2027, fueled by agriculture, trade, and natural resources. With 20 million new job seekers in Sub-Saharan Africa alone each year, the region has an eager and expanding workforce. Africans are also catching up with the rest of the world in terms of technology: every day, more than 90,000 residents of Sub-Saharan Africa connect to the internet for the first time. Africa may be the least developed of the major continents—even its richest countries lag far behind the world’s wealthiest—but its potential is substantial and undeniable. Africa’s pre-Covid-19 top five performing economies are projected to grow by more than 5.5% on average in 2023-2024 and to reclaim their position among the world’s 10 fastest-growing economies. These countries are Rwanda (7.9%), Côte d’Ivoire (7.1%), Benin (6.4%), Ethiopia (6.0%), and Tanzania (5.6%).
Africa’s growth fundamentals are also improving. Investments and net exports are gradually supplanting private consumption. Investment expenditure accounted for a greater share of GDP growth in 2022 than private consumption. Net exports also played a significant role, particularly among commodity exporters. Long-term growth is primarily driven by the accumulation of physical capital, but human capital plays an important complementary role. Despite the continent’s abundant natural resources, Africa and its people have been exploited for decades. Several African countries are among the poorest in the world, with a large proportion of the population living below the poverty line. Another reason is that the continent’s economic growth has been inequitable, with only about one-third of African countries experiencing inclusive growth. Income inequality will impede the distribution of wealth among Africans. Most African countries are still struggling to eradicate extreme poverty. The continent’s goal is to eradicate extreme poverty by 2030. So far, it has remained on the wrong track, with the rate projected to fall to only 24.7% in 2030, falling far short of the 3% Sustainable Development Goal target.
The Gross Domestic Product, or GDP, is the most commonly used and best metric for quantifying this value. GDP is defined as the total value of all services and goods produced in a country’s economy over a specific time period, typically a year. This metric reflects a country’s productivity. The disadvantage of using GDP is that it does not account for differences in the cost of living between countries, as well as different inflation rates, and thus does not always provide a complete picture.
This is where GDP per capita at purchasing power parity (PPP) comes in, providing a more accurate picture of how well-off a country’s citizens are. It is calculated by dividing a country’s total GDP by its population, yielding an average GDP per individual. GDP (PPP) accounts for the fact that the same amount of money can purchase a different number of goods in each country. Using PPP helps to reduce exchange rate differences, resulting in more accurate results. With this in mind, I’ve compiled a list of Africa’s wealthiest countries based on GDP and GDP per capita to provide a better picture of the continent’s economic situation.
While there are several ways to compare various nations’ wealth, one of the best methods is to evaluate each country’s gross domestic product or GDP. This is the value of all the goods and services produced by a nation in a given year. To make country-to-country comparisons more precise, GDP is often first adjusted for Purchasing Power Parity (PPP), which modifies each country’s GDP relative to local prices, and is expressed in a fictional currency called international dollars (INT).
This video has prepared a list of the 10 African countries with the highest GDP per Capita in 2023. The top 10 list of the Richest Countries in Africa is drafted on the basis of a report given by the International Monetary Fund (IMF) and World Bank. According to the International Monetary Fund, the four top African countries posted GDPs of more than $500 billion (INT) in 2023.
PPP (purchasing power parity) Source IMF
With a population of over 200 million people, this West African country is vital to the African economy. Nigeria is the richest country in Africa, with a GDP of slightly more than $574 billion and purchasing power parity of $1.36 trillion. The Economy of Nigeria is a middle-income, mixed economy and emerging market with expanding manufacturing, financial, service, communications, technology, and entertainment sectors. It is ranked as the 31st-largest economy in the world in terms of nominal GDP, the largest in Africa, and the 27th-largest in terms of purchasing power parity. Nigeria’s large population has helped propel the country to the position of largest consumer retailer in Africa.
The country’s digitally savvy residents have contributed to the country’s rapidly growing tech sector. According to the World Bank, Nigeria’s GDP grew at one of the fastest rates in Africa between 2000 and 2014. Due to political insecurity, socioeconomic factors, and oil and production shocks, this has slowed to 2% in recent years. However, the recent price increase in oil prices is helping Nigeria to grow above 3.0%. According to IMF, the Real GDP growth of Nigeria in 2022 was 3.2%, up from 3.6% in 2021, and expected to grow by 3.0% in 2023. The country has placed a strong emphasis on protecting its natural resources, attempting to reduce its reliance on oil refineries and processing plants.
Finance, transportation, infrastructure, tourism, and an abundance of crude oil drive the substantial GDP. According to OPEC, the country exports approximately 1.6 million barrels of crude oil per day, making it Africa’s largest crude oil exporter. Petroleum exports account for 10% of the total GDP and more than 80% of export revenue. Despite accounting for two-thirds of state revenues, oil only accounts for about 9% of GDP. Although the petroleum sector is important because government revenues are still heavily reliant on it, it remains a minor component of the country’s overall economy.
Nigeria has abundant raw materials and natural resources, in addition to petroleum, which contributes to the region’s wealth. Coal, limestone, zinc, lead, tin, natural gas, niobium, and iron ore are among them. There is also enough fertile land for agriculture, which accounts for more than 20% of the GDP and produces cocoa and rubber. The agricultural sector, which is mostly subsistence, has not kept up with the country’s rapid population growth. Nigeria was once a large net food exporter, but now imports some of its food products. Mechanization has led to a resurgence in the manufacturing and exporting of food products, and there was consequently a move toward food sufficiency.
Nigeria, known for its vibrant cultural heritage, diverse ethnicities, natural splendor, and large population, remains the continent’s number one producer in terms of GDP output and Africa’s wealthiest country. The major sources of foreign exchange for Nigeria are Petroleum (crude, refined, and gas), Cocoa beans, Rough woods, Chemicals, Vehicles, and aircraft parts.
Key Fact About Nigeria
|Area:—————————–||924,000 sq km|
|Total Population 2023:——–||220.1 Million|
|Urban Population 2022:——-||52.0%|
|Female Population 2022:——||50.0%|
|GDP:——————————||US$ 574 Billion|
|GNI Per Capita 2022:———-||US$ 2,580|
|Crude Birth Rate (per 1000):–||37%|
|Real GDP growth————-||3%|
|Human Development Index|
Nigeria’s GDP Growth in Q2 2022 is driven by the non-oil Sector | Dataphyte
The government of the state of Lagos – Nigeria’s former capital – has proudly proclaimed it is building a new city that will become the new financial center of Nigeria, and perhaps West Africa
For many years, this ancient land in Northern Africa was Africa’s richest country. However, the economy suffered greatly and foreign exchange reserves plummeted following the 2011 Arab uprising. Egypt is now the second richest country in Africa, with a recent GDP of more than $471 billion and purchasing power parity of $1.8 trillion. Egypt’s economy was once highly centralized and focused on import substitution under President Gamal Abdel Nasser (1954–1970). During the presidency of Abdel Fattah el-Sisi (2014-present), the economy has been guided by Egypt’s 2030 Vision. The policy seeks to diversify Egypt’s economy. In terms of nominal GDP, the country’s economy is the second largest in Africa after Nigeria, and it ranks 33rd globally as of 2022.
Since the early 2000s, the rapid pace of structural reforms (including fiscal and monetary policies, taxation, privatization, and new business legislation) has aided Egypt’s transition to a more market-oriented economy and encouraged increased foreign investment. Reforms and policies have boosted macroeconomic annual growth rates. Over the last decade, economic activity has improved and stabilized, resulting in positive economic growth. The government recently completed an economic reform program with the IMF to reform and strengthen the economy. According to IMF, the Real GDP growth of Egypt in 2022 was 6.6%, up from 3.3% in 2021, and expected to grow by 4.4% in 2023 As Egypt’s economy recovered, other major issues such as unemployment and poverty began to improve significantly. Political stability, proximity to Europe, and increased exports benefit the country. Its currency is also strong. From an investor perspective, Egypt is stable and well-supported by external stakeholders.
The country has also seen a decrease in unemployment, an increase in foreign exchange reserves, increased exports of goods and services, and a strengthened tourism sector, all of which have contributed to its development. The Egyptian economy is driven by petroleum and natural gas exports, tourism, wholesale and retail trade, construction, and real estate. In recent years, the state’s economy has shifted away from raw material exports, with service-based employment accounting for more than half of GDP. However, Egypt may face socioeconomic issues as a result of a large percentage of the population living below the poverty line, unemployment, a weakened healthcare system, and a global slowdown. The primary exports of Egypt are crude oil, petroleum products, cotton, textiles, agricultural products, metal products, and chemicals.
Key Facts About Egypt
|Area:||1,001,000 sq km|
|Total Population 2023:||106 Million|
|Urban Population 2022:||73.50%|
|Female Population 2022:——–||49.70%|
|GDP:——————————–||US$ 471 Billion|
|GNI Per Capita 2022:————-||US$ 4,440|
|Inflation Rate 2022:————–||16.95%|
|Real GDP growth 2022:———-||4.4%|
|Human Development Index:—–||111|
Human Development Index:—
#3. South Africa
As the continent’s third richest country, this southernmost country is also the most industrialized, technologically advanced, and diverse in the continent. With a highly developed economy, advanced infrastructure, a GDP of more than $422 billion, and purchasing power parity of $994 billion, the country is regarded as one of the world’s fastest developing. South Africa is one of only eight African countries with an upper-middle-income economy. Following the end of over a decade of international sanctions in 1996, South Africa’s nominal GDP nearly tripled South Africa, also known as the rainbow nation, is one of the few countries on this list that does not rely on a single source of revenue. Within two decades of the end of apartheid, foreign exchange reserves increased from US$3 billion to nearly US$50 billion, resulting in a diversified economy with a growing and sizable middle class.
Mining, manufacturing, financial services, and tourism are all important industries in the country. It also has a wealth of natural resources and raw material exports such as gold, diamonds, platinum, coal, and iron ore. It is a significant exporter of these commodities, particularly gold, and platinum. Although the natural resource extraction industry remains one of the largest in the country, contributing US$13.5 billion to the GDP annually, South Africa’s economy has diversified since the end of apartheid, particularly towards services. The financial industry contributed $41.4 billion to South Africa’s GDP in 2019. South African financial institutions will manage more than US$1.41 trillion in assets by 2021. As of October 2021, the Johannesburg Stock Exchange’s total market capitalization is US$1.28 trillion.
South Africa is well-known around the world as a major tourist destination and places a high value on tourism as a source of revenue. However, political and global unrest have hampered its ability to realize its full potential. After experiencing four consecutive quarters of negative GDP growth rates, the country entered a recession, and development has slowed. According to IMF South Africa, Real GDP growth in 2022 was 4.1%, down from 2.1% in 2021, and expect to grow by 1.1% in 2023. It also has the world’s highest rates of inequality. Here are the major export of South Africa; gold, diamonds, platinum, coal, iron ore, other metals, minerals, machinery, equipment, motor cars, agricultural foodstuff, and wine.
|Area:||1,221,000 sq km|
|Total Population 2023:||61.34 Million|
|Urban Population 2022:||73.50%|
|Female Population 2022:||49.70%|
|GDP:||US$ 422 Billion|
|GNI Per Capita 2015:||US$ 6,810|
|Real GDP growth||1.1%|
|Human Development Index (rank / 188):||119|
|Human Development Index (scale 0 to 1):||0.666|
Algeria, the continent’s largest country in the north, ranks fourth on this list of Africa’s wealthiest countries. With a significant economy and available infrastructure, as well as a GDP of more than $190 billion and purchasing power parity of $600 billion, the country has made the notable achievement of reducing poverty by 20% in the last 20 years. Algeria’s economy continued to recover in the first half of 2022 from covid-19, led by a return to pre-pandemic levels of oil production, the continued recovery of the service sector, and increased agricultural activity.
According to the latest edition of the World Bank’s Algeria Economic Update, the recovery should continue into 2023, supported by the nonhydrocarbon sector and public expenditure growth. This developing Saharan country has an abundance of crude oil reserves, and the economy is heavily reliant on it. So much so that hydrocarbons (oil and natural gas) account for nearly 70% of the country’s income. More crude oil reserves discovered recently have boosted this rapidly growing industrial country.
Agriculture, industrial works, commercial services, and construction are some of the other sectors that contribute to the Algerian economy. The country is also one of Africa’s largest suppliers of ammonia. It is worth noting, however, that the recent depression and volatility in oil prices have resulted in a decrease in the country’s currency reserves. Furthermore, political unrest and scandals in the hydrocarbon industry have slowed Algeria’s economic growth. According to IMF the Real GDP growth of Algeria in 2022 was 4.7%, up from 3.5% in 2021, and expected to grow by 2.6% in 2023. Algeria is known for exporting petroleum, natural gas, petroleum products, and ammonia.
However, the macroeconomic outlook is still vulnerable to changes in global hydrocarbon prices. According to the report, the non-hydrocarbon private sector must become the engine of Algerian growth and diversification in the medium to long term. Continued implementation of government structural reform programs, greater openness to the private sector, increased competitiveness, and increased investment in human capital are all critical to the Algerian economy’s flourishing and resilience.
|Area:||2,382,000 sq km|
|Total Population 2017:||46 Million|
|Urban Population 2017:||73.50%|
|Female Population 2017:||49.70%|
|GDP:||US$ 190 Billion|
|GNI Per Capita 2015:||US$ 4,160|
|Real GDP growth||2.6%|
|Human Development Index (rank / 188):||83|
|Human Development Index (scale 0 to 1):||0.745|
Algeria is among the top 11 countries in terms of proven gas reserves.
Morocco’s economy is considered relatively liberal, governed by the law of supply and demand, and its economy ranks fifth on this list of Africa’s richest countries, with a GDP of more than $150 billion and purchasing power parity of $ 384 billion. Morocco has pursued a policy of privatization of previously government-controlled economic sectors since 1993. Morocco has emerged as a major player in African economic affairs. This North African country’s economy is versatile and stable, with growth in a variety of industries over the last decade. The country’s economic system is distinguished by a large opening to the outside world. As of 2017, Morocco had the Arab world’s second-largest non-oil GDP, trailing only Egypt. Mining and manufacturing drive the country’s economy.
Industry, Agriculture, phosphate minerals, and tourism are the mainstays of the Moroccan economy. Industry accounts for 30% of Moroccan GDP, agriculture for 15%, and services account for 55%. Fish and seafood sales are also significant. This is supplemented by a growing tourism sector, with locals welcoming tourists and the government emphasizing attracting visitors to the country known for its attractions. Since independence, tourism and worker remittances have been critical. Morocco is the world’s third-largest producer of phosphates (after the United States and China), and phosphate price fluctuations on the international market have a significant impact on Morocco’s economy.
The country has reaped significant benefits from its diverse exports, which include, but are not limited to, electrical equipment, vehicles, and vehicle parts. Furthermore, the telecom and textile industries contribute significantly to the economy. However, Morocco’s economic growth has been stifled due to Covid-19, with real GDP growth of only 0.8% in 2022, falling short of the 7.9% in 2021. Morocco’s primary exports are textiles and clothing automobiles, aircraft components, electrical components crude minerals, inorganic chemicals, fertilizers, petroleum products Citrus fruits, vegetables, and seafood.
|Area:||712,550 sq km|
|Total Population 2023:||38 Million|
|Urban Population 2022:||73.50%|
|Female Population 2022:||49.70%|
|GDP:||US$ 121.4 Billion|
|GNI Per Capita 2015:||US$ 4,070|
|Real GDP growth||3.1%|
|Human Development Index (rank / 188):||123|
|Human Development Index (scale 0 to 1):||0.647|
Morocco Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption
Ethiopia, the only African country never colonized by European countries is a landlocked country located in the Horn of Africa and divided by the Great Rift Valley, is Africa’s sixth richest country. This ancient land is famous for being the origin of the coffee bean, with archaeological finds dating back over 3 million years. Agriculture, construction, manufacturing, tourism, food processing, resources, and energy account for more than $126 billion in GDP and purchasing power parity of $379 billion. The country is Africa’s largest producer of coffee, which account for a large portion of the country’s foreign exchange. Legumes, oily seeds, and cut flowers are also exported. Agriculture is the most important resource in the region, accounting for more than 40% of GDP, 60% of exports, and more than 80% of total employment.
Telecommunications, financial and insurance services, air and land transportation services, and retail, on the other hand, are considered strategic sectors and are expected to remain under state control for the foreseeable future. Almost half of Ethiopians are under the age of 18. Despite significant increases in primary and secondary school enrollment, job creation has not kept pace with the increased output from educational institutions. To keep up with population growth, the country must create hundreds of thousands of new jobs each year.
Since 2008, Ethiopia’s economic growth has averaged 9.9% year on year. This consistent annual growth, which few African countries have achieved, has begun to attract foreign investment. In 2018, the government launched an ambitious economic reform to further open up the economy and drive transformation. By 2015, the country’s poverty rate had dropped to 31%, and it aims to be a middle-income economy by 2025. High consumer inflation, socio-political instability, and an underdeveloped private sector, on the other hand, are issues to keep an eye on. According to IMF, the Real GDP growth of Ethiopia in 2022 was 3.8%, down from 6.3% in 2021, and expected to grow by 6.2% in 2023. Ethiopia’s primary exports are Coffee, qat, oilseeds, gold, leather goods, and live animals, all examples of commodities.
Ethiopia’s economy is a mixed and transition economy with a large public sector. Ethiopia’s government is in the process of privatizing many state-owned enterprises and transitioning to a market economy. Government-owned enterprises dominate the banking, telecommunications, and transportation sectors of the economy. Many properties and businesses are owned by the government including Africa’s largest Airline (Ethiopian Airlines). Some of these businesses and properties have been privatized or are in the process of being privatized, with the financial sector set to be liberalized in the near future. Ethiopia is Sub-Saharan Africa’s third-largest economy, trailing only Nigeria and South Africa. Ethiopia has one of the world’s fastest-growing economies and is Africa’s second most populous country.
|Area:||1,110,400 sq km|
|Total Population 2023:||123 Million|
|Urban Population 2022:||73.50%|
|Female Population 2022:||49.70%|
|GDP:||US$ 126 Billion|
|GNI Per Capita 2022:||US$ 1,230|
|Real GDP growth||5.3%|
|Human Development Index (rank / 188):||174|
|Human Development Index (scale 0 to 1):||0.448|
Addis Ababa, Ethiopia the political capital of Africa
Grand Ethiopian Renaissance Dam
Kenya is a country located in East Africa known for its vast landscapes and wildlife, is the seventh richest country in Africa, with a GDP of more than $117 billion and purchasing power parity of $339 billion. Thanks to its stable living conditions established coffee and tea sectors, and rapidly growing agricultural sector. Kenya’s economy is market-based, with a few state-owned enterprises. It is also an emerging market and a country with a higher level of industrialization than its East African counterparts. Kenya is a middle-income country with ambitions to become a newly industrialized nation by 2030. Agriculture, forestry, fishing, mining, manufacturing, energy, tourism, and financial services are among the major industries.
This country is the wealthiest in Southeast and Central Africa. For centuries, its coastline has been home to a number of strategic ports for Asian and Arabian traders, becoming a regional trade hub. Kenya’s economy, unlike many other countries on this list, is not based on the oil industry, but it is experiencing diverse positive growth. Kenya’s government is generally investment-friendly as of 2020 and has enacted several regulatory reforms to simplify both foreign and domestic investment, including the establishment of an export processing zone. Remittances from non-resident Kenyans working in the United States, the Middle East, Europe, and Asia account for an increasing share of Kenya’s foreign financial inflows.
Kenya has emerged as one of the fastest-growing economies in Sub-Saharan Africa, and its economic prospects were positive as of 2018 and 2019, with GDP growth of more than 6% and about 5.7 respectively. This is due to strong investor confidence, a stable political climate and service sector, a favorable macroeconomic environment, and a well-defined business agenda. This expansion was also largely attributed to expansions in the telecommunications, transportation, and construction sectors, a recovery in agriculture, and the rise of small businesses pulling the economy. Kenya ranked 56th in the World Bank’s ease of doing business index in 2020, up from 61st in 2019. (of 190 countries). Kenya has a well-developed social and physical infrastructure in comparison to its neighbors.
A large pool of highly educated professional workers supports these advancements. IT literacy and innovation are high, particularly among young Kenyans. The industrial sector accounts for nearly half of the GDP. The agricultural sector accounts for 35% of the GDP, with coffee, tea, and maize being the main products. Tourism, financial services, and technology all experienced rapid growth, and petroleum accounts for a sizable portion of the country’s foreign exchange. According to IMF, the Real GDP growth of Kenya in 2022 was 5.3%, down from 7.1% in 2021, and expected to grow by 5.1% in 2023. Kenya’s major exports are horticultural products, tea, and coffee petroleum items fish, cement, and clothing.
|Area:||580,000 sq km|
|Total Population 2017:||57 Million|
|Urban Population 2017:||73.50%|
|Female Population 2017:||49.70%|
|GDP:||US$ 117 Billion|
|GNI Per Capita 2015:||US$ 2,260|
|Real GDP growth||5.1%|
|Human Development Index (rank / 188):||146|
|Human Development Index (scale 0 to 1):||0.555|
Angola has one of the largest reserves of raw materials in Africa, and its economy is based on oil, with large reserves of natural gas and oil accounting for more than one-third of the country’s GDP. Crude oil production and export contribute significantly to foreign exchange. In fact, crude oil sales account for 90% of the country’s export revenue. Diamonds and cargo ships are two other notable exports. In essence, it could be higher up on this list of Africa’s richest countries. Angola ranks sixth on this list, with a GDP of more than $135 billion and purchasing power parity of $262 billion, and its economy was one of the fastest-growing in the world during the first decade of the twenty-first century, with annual average GDP growth of 11.1 percent from 2001 to 2010. Once again, as of 2020, Angola is growing faster than the rest of the world due to high international oil prices and rising oil production, albeit with high inequality.
Agriculture is also expected to become an important economic sector in the future. Angola’s civil war ended in 2002. Positive steps have been taken since then, with the goal of achieving economic advancement and stability. Along with the IMF and the World Bank, work has been done on both political and structural reforms. Since then, the country has had one of the world’s fastest-growing economies and has become one of the richest African countries. According to IMF, the Real GDP growth of Angola in 2022 was 2.9%, up from 0.8% in 2021, and expected to grow by 3.4% in 2023. Agolas’s major exports are refined petroleum products, crude oil coffee, diamonds, sisal, fish and fish products, timber, and cotton.
Despite abundant oil and gas resources, diamonds, hydroelectric potential, and fertile agricultural land, Angola remains impoverished, with subsistence agriculture employing one-third of the population. The effects of four decades of conflict in the late twentieth century, the war for independence from Portugal (1961-75), and the subsequent civil war continue to have a significant impact on Angola’s economy (1975–2002). Since the end of the 27-year civil war in 2002, government policy has prioritized infrastructure repair and improvement, as well as the strengthening of political and social institutions. In addition, the country’s economy has suffered as a result of resource mismanagement and internal corruption.
|Total Population 2023:||35.6 Million|
|Urban Population 2022:||66.8%|
|Female Population 2022:||51.2%|
|GDP:||US$ 135 Billion|
|GNI Per Capita 2022:||US$ 4,000|
|Inflation Rate December 2020:||11%|
|Real GDP growth||3.4%|
|Human Development Index (rank / 189):||148|
|Human Development Index (scale 0 to 1):||0.581|
Tanzania’s economy is a lower-middle-income economy that is heavily reliant on agriculture and its natural resources. With a GDP of more than $84 billion and purchasing power parity of $231 billion, Tanzania just makes the list of the top 10 wealthiest countries on the African continent, ranking ninth. Since 1985, Tanzania’s economy has been transitioning from a command economy to a market economy. Although total GDP has increased since these reforms began, GDP per capita fell sharply at first and only recently surpassed the pre-transition figure. Tanzania’s real GDP increased by 5.2% in 2022, reaching $84.9 billion, up from $75.8 billion in 2021. With this expansion, it became the second largest economy in East Africa, after Kenya, and the seventh largest in Sub-Saharan Africa. It has maintained relatively high economic growth in comparison to global trends, as is typical of African countries.
The country has a lower-middle mixed-income economy and is home to some of the continent’s most famous national parks, including Kilimanjaro. Agriculture dominates the country’s economy, accounting for nearly 25% of GDP and employing half of the workforce. Industries are a growing component of the economy, which accounts for almost 30% of GDP and includes mining, manufacturing, construction, electricity, natural gas, and water supply. Gold, coffee, cashew nuts, and cotton are the most important exports.
Tanzania has experienced relatively rapid economic growth in recent years, with a 5.6% growth rate, but this appears to be slowing. According to IMF, the Real GDP growth of Tanzania in 2022 was 4.5%, down from 4.9% in 2021. The medium-term economic outlook is positive, supported by significant infrastructure spending, with real GDP expected to grow 5.9% in 2023 as a result of trade corridor reopenings and improved tourism sector performance. Despite economic growth and a lower poverty rate in recent years, the absolute number of people living in poverty has remained constant. Tanzania export mainly Gold, cashew nuts, coffee, and cotton are all examples of precious metals.
|Area:||886,000 sq km|
|Total Population 2023:||64.5 Million|
|Urban Population 2022:||37.00%|
|Female Population 2022:||50.00%|
|GDP:||US$ 84.9 Billion|
|GNI Per Capita 2022:||US$ 1,340|
|Real GDP growth||5.2%|
|Human Development Index (rank / 188):||163|
|Human Development Index (scale 0 to 1):||0.529|
Located in West Africa, Ghana has a diverse economy, and its economy rounds out the top ten richest African countries, with a GDP of $70 billion and purchasing power parity of $226 billion in the previous year. The country was the first in Sub-Saharan Africa to be liberated from colonial rule and the first to achieve the goal of halving extreme poverty. Ghana’s economic resource base, includes the manufacturing and exportation of digital technology goods, the construction and exportation of automobiles and ships, and the exportation of diverse and rich resources such as hydrocarbons and industrial minerals. As a result, Ghana now has one of the highest GDP per capita rates in West Africa. Because of its overall favorable business environment, the country has attracted foreign investment and has experienced economic growth in the last decade. Services account for roughly half of Ghana’s GDP and employ nearly 30% of the workforce.
Agriculture is the next largest contributor to GDP, accounting for just under 25%. Ghana has an abundance of natural resources, which contributes to the country’s economic boom. Ghana is Africa’s largest gold producer, having surpassed South Africa in 2019, and the continent’s second-largest cocoa producer (after Ivory Coast). It also has a high concentration of diamonds, manganese or manganese ore, bauxite, and oil. The country’s main export is gold. This is followed by petroleum, which accounts for 50% of the country’s foreign exchange. Cocoa beans, Gold, bauxite, aluminum, manganese ore, diamonds, oil cocoa, timber, tuna, and horticultural products are some of the commodities available and are also important exports. According to IMF, the Real GDP growth of Ghana in 2022 was 3.6%, down from 5.4% in 2021, and expected to grow by 2.8% in 2023.
|Area:||239,460 sq km|
|Total Population 2023:||32.9 Million|
|Urban Population 2022:||57.0%|
|Female Population 2022:||50.60%|
|GDP 2020:||US$ 70.9 Billion|
|GNI Per Capita 2022:||US$ 2,130|
|Real GDP growth||2.8%|
|Human Development Index (rank / 189):||138|
|Human Development Index (scale 0 to 1):||0.61|
Although GDP is an extremely valuable metric, it is also quite broad. For example, it disregards the number of citizens contributing to a country’s GDP, which means a country with a vast, but less effective workforce can post a higher GDP than a country with a smaller, but efficient workforce. To get a more granular look at this and other factors, economists often turn to GDP per capita, which divides the gross domestic product by the number of people in the country.
Switching the measurement to GDP per capita has a significant impact on the list of Africa’s richest countries. Seychelles is the richest country when using this metric. The Seychelles economy is primarily driven by fishing, tourism, boat building, processing coconuts and vanilla, and agriculture, especially cinnamon, sweet potatoes, tuna, and bananas. Its public sector contributes the most employment and gross revenue, employing two-thirds of the total labor force. Although Egypt has the highest total GDP of any African country, it ranks only eighth in terms of GDP per capita. What’s more, Nigeria doesn’t even make the new list—in fact, it’s in 22nd place.
Gross national income (GNI)
The other metric often used by economists to compare the wealth of different countries is gross national income or GNI. While GDP measures the value of the goods and services a country creates, GNI measures the total income obtained through those goods and services. GNI also tracks money that enters or exits a country’s economy as part of international business activities. This makes GNI a bit better at avoiding the artificially inflated totals that can distort the GDPs of countries that are known as international tax shelters.
Gross national income, or GNP, is a final metric that economists frequently use to compare the wealth of different countries. While GDP measures the value of a country’s goods and services, GNP measures the total income generated by those goods and services. GNP also tracks the amount of money that enters and exits a country’s economy as a result of international business transactions. This improves GNP’s ability to avoid artificially inflated totals that can distort the GDPs of countries known as international tax havens.
Seychelles has ranked first once again, with Equatorial Guinea close behind and followed by countries such as Mauritius, Gabon, and Botswana respectively. However, Egypt, which had the highest overall GDP in Africa, has dropped completely out of the top five (it is now ranked 9th). Even Africa’s richest nations pale in comparison to those on most other continents when viewed globally. North America’s average GNP per capita is $78,420, while the European Union’s average GNP per capita is $34,510. Seychelles, on the other hand, is ahead of the global average of $11,057, and several other African countries have the potential to meet or exceed that goal as well.