30 Biggest Economies in Africa
In this article, we will be taking a look at the 30 biggest economies in Africa. To skip our detailed analysis, you can go directly to see the 7 biggest economies in Africa.
Generally considered to be the poorest continent in the world, Africa has fared poorly through the decades, which is why close to half a billion people in the continent live below the poverty line of $1.9 a day. In fact, after the impact of Covid-19 on Africa, even though the direct impact on healthcare wasn't as significant as in the U.S. or Europe, the number of people living in poverty in Africa now exceed those in South Asia, both because of Africa's worsening situation and India's improving situation, even though the latter still has the highest number of poor people in the world by a significant margin.
Pixabay/Public domain
According to Transparency.org, 75 million people in Africa paid bribes in a single year, with some engaging in the act to circumnavigate police or courts, while others are forced to do in order to receive basic services that should be available regardless of bribes being paid. While many Africans are still worried that corruption is on the rise, others are more optimistic about a better future with less corruption. Because corruption is so rampant across the continent, investors are hesitant to invest in Africa which in turn us hampering growth. This is also especially unfortunate considering the fact that the biggest economies in Africa registered a GDP growth of over 11% from 2020 to 2021. It is also one of the major reasons why African nations dominate the poorest countries in the world.
According to the United Nations, Africa's economic growth is expected to be impacted negatively in 2023, falling from 4.1% in 2022 to 3.8% in 2023. As mentioned earlier, since investors are reluctant to take a risk with their money, while exports are also continuing to fall. While growth in 2023 is expected to increase in 2023 for West Africa, it is expected to remain stable in East and Central Africa, while North and Southern Africa are expected to fall. A major rise in global inflations, higher borrowing costs due to increasing interest rates have also hampered external demand, while climate change, one of the biggest global risks of 2023, has wreaked havoc on the continent.
If Africa is to have a successful 2023, and beyond, some of the biggest companies in the country will have to continue performing well. Africa is home to vast mineral deposits, with estimates suggesting that these deposits could be worth trillions of dollars. This is one of the reasons why mining companies are often among some of the biggest companies in the continent with some even listed in the U.S., including AngloGold Ashanti Limited (NYSE:AU), one of the most valuable South African companies in the world. Other major mining companies include Gold Fields Limited (NYSE:GFI), another gold mining companies and Sasol Limited (NYSE:SSL), one of the largest energy and chemical companies in Africa.
The biggest economies in Africa also have a lot in common with the most expensive countries in Africa as well as the richest countries in Africa, as cost of living is also related to the development level and standard of living of a country. These countries have a combined GDP of over $2.6 trillion, with the three biggest economies alone contributing nearly $1.3 trillion to the continent's economy in 2021. To determine our rankings, we determined the GDP of each country for 2020 and 2021 according to the World Bank, with the latter being accorded 70% of weightage, as it is the most recent year. So, let's now take a look at the giants of Africa, starting with:
30. Malawi
Total GDP of the country in 2021 (in billions): $12.6
Total GDP of the country in 2021 (in billions): $12.2
Malawi's central bank kept its benchmark lending policy rate at 18% as the country's economic outlook improved significantly after a poor 2022.
29. Madagascar
Total GDP of the country in 2021 (in billions): $14.5
Total GDP of the country in 2021 (in billions): $13.1
Madagascar struggled in 2022 to rebound from the impact on its economy due to the Covid-19 pandemic and the country's low growth potential and consistent crises is hampering its ability to grow too.
28. Niger
Total GDP of the country in 2021 (in billions): $14.9
Total GDP of the country in 2021 (in billions): $13.7
While Niger's political landscape is broadly stable, climate shocks and a decade-long conflict in the Sahel have been a burden on the country's economic outlook.
27. Mozambique
Total GDP of the country in 2021 (in billions): $15.8
Total GDP of the country in 2021 (in billions): $14.0
Regional conflicts within Mozambique's natural gas and ruby-rich coastal province have exerted pressure on the country's fiscal resources as a result of higher security expenditure.
26. Guinea
Total GDP of the country in 2021 (in billions): $ 16.1
Total GDP of the country in 2021 (in billions): $ 14.2
From 2020 to 2021, Guinea's GDP grew by an incredible 15%, cementing its place among the biggest economies of Africa.
25. Benin
Total GDP of the country in 2021 (in billions): $ 17.1
Total GDP of the country in 2021 (in billions): $ 15.7
Benin imports 70% of its wheat products from Russia, with this supply and prices being massively impacted by the Russia-Ukraine war.
24. Botswana
Total GDP of the country in 2021 (in billions): $17.6
Total GDP of the country in 2021 (in billions): $14.9
The UN projected Botswana's economy will grow by 3% in 2023 despite an issue of power supply and high inflation.
23. Mali
Total GDP of the country in 2021 (in billions): $19.1
Total GDP of the country in 2021 (in billions): $17.5
Barrick Gold Corporation (NYSE:GOLD), one of the largest mining companies in the world, owns a mining complex in Mali, known as Loulo-Gounkoto, which is an important factor in the country's economic development.
22. Gabon
Total GDP of the country in 2021 (in billions): $20.2
Total GDP of the country in 2021 (in billions): $15.3
Gabon was assigned a "B-" rating by Fitch even as its outlook is positive while its surplus is expected to improve to 1.1% of its 2023 GDP.
21. Burkina Faso
Total GDP of the country in 2021 (in billions): $19.7
Total GDP of the country in 2021 (in billions): $17.9
In February 2023, IMF reached an agreement with Burkina Faso for emergency financing of $80 million as food prices increased in the country as a result of the Russia-Ukraine war and a worsening food crisis.
20. Zambia
Total GDP of the country in 2021 (in billions): $22.1
Total GDP of the country in 2021 (in billions): $18.1
Zambia's economic reforms have been lauded by IMF and it has enormous economic potential thanks to its vast natural resources.
19. Senegal
Total GDP of the country in 2021 (in billions): $27.6
Total GDP of the country in 2021 (in billions): $24.5
The IMF stated that Senegal's medium term growth outlook seems to be favorable, which will average around 10% in 2023 and 2024.
18. Zimbabwe
Total GDP of the country in 2021 (in billions): $28.4
Total GDP of the country in 2021 (in billions): $21.5
Zimbabwe is expected to maintain modest growth in its GDP in 2023 even as hyperinflation is expected to reach nearly 400% in June 2023. Meanwhile, sales volumes plummeting for big grocers in Zimbabwe are just another indication of the troubles that the nation's economy is facing.
17. Sudan
Total GDP of the country in 2021 (in billions): $34.3
Total GDP of the country in 2021 (in billions): $27.0
Sudan's facing a revenue crisis right now, with the revenue deficit being cited as the reason why governmental employees have reported a delay in receiving their January 2023 salaries.
16. Uganda
Total GDP of the country in 2021 (in billions): $40.5
Total GDP of the country in 2021 (in billions): $37.6
Uganda's economic outlook is quite challenging right now despite being one of the biggest economies in Africa.
15. Cameroon
Total GDP of the country in 2021 (in billions): $45.3
Total GDP of the country in 2021 (in billions): $40.8
Cameroon's public debt to GDP ratio is currently at 46.3%, and its 2023 economic outlook is favorable while the government agreed a deal with the IMF that gives them access to financing worth nearly $75 million.
14. Libya
Total GDP of the country in 2021 (in billions): $42.8
Total GDP of the country in 2021 (in billions): $50.4
After Libya's President Muammar Gaddafi was deposed as part of the Arab Springs, the country's economy has declined drastically with political uncertainty reigning supreme. Recently, Libya's crown prince El-Senussi announced a plan to attract investors from all across the world.
13. Tunisia
Total GDP of the country in 2021 (in billions): $46.7
Total GDP of the country in 2021 (in billions): $42.5
Tunisia was in the global news in 2011 when its President was toppled as part of the Arab Springs, and in fact, was the country where the Arab Springs began. Currently, the country is once again mired in political uncertainty which could hamper its growth this year.
12. Democratic Republic of Congo
Total GDP of the country in 2021 (in billions): $55.4
Total GDP of the country in 2021 (in billions): $48.7
Increased mining production has been cited as one of the reasons why the Democratic Republic of Congo's economy is expected go grow fasted in 2023. While there are several risks to the country's economic growth rate, the positives are set to far outweigh the negatives.
11. Angola
Total GDP of the country in 2021 (in billions): $67.4
Total GDP of the country in 2021 (in billions): $53.6
Angola's economic performance has been impressive in recent years with the IMF predicting that it will even overtake Kenya among the biggest economies in Africa. Recently, Fitch also affirmed Angola's rating at "B+" with a positive outlook.
10. Tanzania
Total GDP of the country in 2021 (in billions): $67.8
Total GDP of the country in 2021 (in billions): $62.4
Tanzania's economy is expected to increase by 5.6% this year which will make it the third fastest growing economy in Africa, trailing only Cote d'Ivoire and Rwanda.
9. Cote d'Ivoire
Total GDP of the country in 2021 (in billions): $70.0
Total GDP of the country in 2021 (in billions): $61.3
The African Development Bank saw its economy strengthen significantly in 2021 after rebounding from the shocks caused by the Covid-19 pandemic. And while inflation increased mainly because of rising prices in food as a result of a lack of local production, one of the main concerns for the country is the impact of the Russia-Ukraine war resulting in consistently increased inflation.
8. Ghana
Total GDP of the country in 2021 (in billions): $77.6
Total GDP of the country in 2021 (in billions): $70.0
The IMF expects Ghana's growth in 2023 to slow down, with domestic inflation being one of the headwinds faced by one of the biggest economies in Africa.
Click to continue reading and see the 7 biggest economies in Africa.
Suggested articles:
Disclosure: None. 30 biggest economies in Africa is originally published at Insider Monkey.