20 Most Advanced Countries in Africa
In this article, we will look at the 20 most advanced countries in Africa. If you want to skip our detailed analysis, you can head straight to the 5 Most Advanced Countries in Africa.
Africa holds tremendous economic potential with its abundant natural resources, a burgeoning population, and a rise in its middle-class population. These factors being the key drivers for Africa’s growth potential, set it on the cusp of becoming steadily integrated into the global economy. However, several challenges are hindering the growth such as extreme poverty in the region, its dependence on exports, and negligence of the government. Despite the weight of these persistent challenges on the region’s economic growth, Africa is becoming an opportunistic region.
According to the World Bank, Africa is forecasted to experience an economic growth of 3.9% by 2050. Africa is home to the world’s largest free trade area and a total of 1.2 billion people. The young and growing population presents countless opportunities for growth in the region. However, to truly harness these opportunities, it is imperative to make strategic investments in education, business innovation, and inclusive and sustainable initiatives in the region.
Major Industries in Africa
Africa is rich in natural resources and has one of the largest mineral sectors in the world. According to a report by UNCTAD, Africa is home to vast reserves of Cobalt and Manganese. It accounts for almost half of the world’s total reserves with 48% Cobalt and 47.6% Manganese, which have applications in the automotive and energy industries.
The mining industry is one of the major industries contributing to Africa’s economic development. According to a report by Verified Market Research, the mining market in Africa was worth $476.86 billion in 2022. The market is expected to grow at a compound annual growth rate of 6.60% and reach $799.66 billion by 2030.
Exxaro Resources Limited (JSE:EXX) is one of the leading names in the mining industry in Africa. On October 4, Reuters reported that the company is looking for acquisition opportunities in copper-producing African countries. The company is considering partnering with existing miners there to diversify into metals required for clean energy transition. The company hasn't revealed any names yet but the CEO of Exxaro Resources Limited (JSE:EXX), Nombasa Tsengwa said that the company is looking at multiple partnership opportunities simultaneously.
Africa is also making strides in technological advancement. UNCTAD cited Global System for Mobile Association findings in a report which states that there were 618 active technology hubs in Africa as of 2019, up from 442 reported in 2018. Let's discuss another prominent African market, the entertainment and telecommunications industry.
According to a report by Mordor Intelligence, the entertainment and telecommunication industry in Africa was valued at $62.98 billion in 2022 and is expected to grow at a CAGR Of 3.91% to reach $78.09 billion by 2028. Some of the top companies in the market include MTN Group Limited (JSE:MTN) and Naspers Limited (JSE:NPN).
MTN Group Limited (JSE:MTN) is among the leading companies in the telecommunication market in Africa. On October 4, Reuters reported that the company had improved its network availability by 15% due to the ongoing investment in power backup solutions. The company recently invested around $233 million to improve its network's resilience in case of power outages. MTN Group Limited (JSE:MTN) has installed 20,000 batteries, 5,000 rectifiers, and around 900 diesel generators at various sites across the region. The company has upgraded 5,000 network sites with batteries, rectifiers, generators, and increased security.
On October 6, as reported by Business Tech, MTN Group Limited (JSE:MTN) recently attended GovTech 2023 along with the state agencies to help the government accelerate Africa's digital transformation. The goal of this partnership is to deliver 3,000 Mobile Device Management (MDM) licenses to the agencies. The company also recommended SOTI MobiControl, a top-rated MDM solution that can help agencies secure mobile devices, apps, and IoT endpoints.
Prosus N.V. (AMS:PRX), a majority-owned company by Naspers Limited (JSE:NPN), a South African multinational internet and multimedia company, launched its generative AI tool called Meet Plus One on September 12. The AI tool will help companies automate their tasks, increase productivity, and work efficiently. The AI tool is easy to use and can be adopted by companies of all sizes. It can easily be integrated with the company's existing tech system.
Now that we have discussed some of the top industries and companies in Africa, let's take a look at some of the most advanced countries in Africa.
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Methodology:
To rank the 20 most advanced countries in Africa, we consulted with the World Intellectual Property Organization’s (WIPO) Global Innovation Index 2023. Global Innovation Index ranks countries based on their potential and capacity for innovation. The tracker assesses countries' innovative landscapes, their adoption of technology, and the socio-economic aspect of the development. The index utilizes a data set built on 80 indicators to provide a credible basis for the ranking of countries. Countries with a higher Global Innovation Index are ranked higher on our list.
20 Most Advanced Countries in Africa
20. People's Democratic Republic of Algeria
Global Innovation Index (2023) Ranking: 119
The People's Democratic Republic of Algeria is a country in North Africa. It has a GDP of $113.42 billion as of 2022 and a GDP per capita of $13,209. The country's economy is majorly dependent on its oil and gas sector accounting for more than 90% of its exports. It is ranked 20 on our list of the 20 most advanced countries in Africa.
For investors looking to increase their exposure to the African market, some stocks to consider include Naspers Limited (JSE:NPN), MTN Group Limited (JSE:MTN), and Exxaro Resources Limited (JSE:EXX).
19. Republic of Zambia
Global Innovation Index (2023) Ranking: 118
The Republic of Zambia ranks 19 on our list. The country is located in South Africa. As of 2022, It has a GDP of $29.7 billion. The economy in Zambia is highly dependent on the mining sector.
18. Republic of Zimbabwe
Global Innovation Index (2023) Ranking: 117
The Republic of Zimbabwe is located in Southern Africa. The country is home to several minerals including gold, platinum, diamonds, and coal. The country has a GDP of $20.6 billion as of 2022.
17. Togo
Global Innovation Index (2023) Ranking: 114
Togo is a country in West Africa with a GDP of $8.1 billion. The country is ranked 17 on our list of the most advanced countries in Africa. The country's economic key driver is the agriculture sector.
16. United Republic of Tanzania
Global Innovation Index (2023) Ranking: 113
The United Republic of Tanzania is a country in East Africa. The country reported a GDP of $75.7 billion in 2022. Tanzania is an agricultural country. The agriculture, forestry, and fishing sectors collectively contribute 27% to its total GDP. It is ranked 16 on our list of most advanced African countries.
15. C?te d’Ivoire
Global Innovation Index (2023) Ranking: 112
C?te d’Ivoire ranks 19 on our list. The country is located in West Africa. As of 2022, It has a GDP of $70 billion. The country's economy is primarily dependent on its agriculture sector.
14. Nigeria
Global Innovation Index (2023) Ranking: 109
Nigeria is a country in West Africa. It has a GDP of $477.3 billion as of 2022. Nigeria ranks 14 on our list due to a relatively high ranking on the Global Innovation Index. The country has a mixed economy with manufacturing, financial, and communication sectors being the key drivers.
13. Republic of Madagascar
Global Innovation Index (2023) Ranking: 107
The Republic of Madagascar is a country in East Africa with a GDP of $14.9 billion. It is ranked 13 on our list of the most advanced countries in Africa. The country is primarily an agricultural country with agriculture contributing 25% to its GDP.
12. Republic of Rwanda
Global Innovation Index (2023) Ranking: 103
The Republic of Rwanda is ranked 12 on our list due to its relatively high ranking on the global innovation index. The country is located in East Africa and reported a GDP of $13.3 billion in 2022.
11. Republic of Kenya
Global Innovation Index (2023) Ranking: 100
The Republic of Kenya ranks 11 on our list. It is located in East Africa and has a GDP of $113.4 billion. Major key drivers of Kenya's economy include agriculture, forestry, mining, manufacturing, energy, and financial services.
10. Republic of Ghana
Global Innovation Index (2023) Ranking: 99
The Republic of Ghana is a country in West Africa. As of 2022, it has a GDP of $72.8 billion. It is ranked 10 on our list of most advanced countries in Africa based on its high ranking in the global innovation index. Ghana's major exports are gold, cocoa beans, and crude oil.
9. Namibia
Global Innovation Index (2023) Ranking: 96
Namibia is located in Southwest Africa. It is ranked 9 on our list and reported a GDP of $12.6 billion in 2022. The manufacturing sector is one of the primary sectors contributing to its economic growth.
8. Republic of Senegal
Global Innovation Index (2023) Ranking: 93
The Republic of Senegal is among the most advanced countries in Africa. It is located in West Africa and reported a GDP of $27.6 billion in 2022. The major key drivers in its economic growth are mining, construction, tourism, fishing, and agriculture sectors.
7. Republic of Cabo Verde
Global Innovation Index (2023) Ranking: 91
The Republic of Cabo Verde is located on the west coast of Africa. It has a GDP of $2.3 billion. The country's economy is driven by commerce, trade, transport, and public services.
6. Egypt
Global Innovation Index (2023) Ranking: 86
Egypt is a country that links Northeast Africa with the Middle East. It is ranked 6 on our list of the 20 most advanced countries in Africa. The country reported a GDP of $476.7 billion in 2022. Egypt's economy is among the largest economies in Africa. The manufacturing sector is the primary driver of its economy.
Some of the prominent African stocks include Naspers Limited (JSE:NPN), MTN Group Limited (JSE:MTN), and Exxaro Resources Limited (JSE:EXX).
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Disclosure. None. 20 Most Advanced Countries in Africa is originally published on Insider Monkey.