African continent is not lagging in economic development. The continent’s Gross Domestic Product (GDP) is projected to grow up to $29 trillion by 2050. Some countries in Africa have the fastest-growing economies across the world, according to World Population Review.
A report by Rand Merchant Bank (RMB) on Where to Invest in Africa 2021, ranks Egypt as the top economy to invest in, followed by Morocco, South Africa, Rwanda, and Botswana coming in fifth place.
Ghana, Mauritius, Ivory Coast, Kenya, and Tanzania close the list of top investment destination countries in Africa, in 2021.
These countries have the fastest growth rate in terms of GDP. The value of goods and services increases based on economic developments in Agriculture, Trade, and their GDP.
Nigeria’s Gross Domestic Product (GDP) stands at $514.05 in 2021. The country has a population of 211 million people and its abundance of natural resources put it atop other economies in Africa. The country is the largest supplier of crude oil and agricultural produce such as cocoa and rubber.
Despite the impacts of the global Covid-19 pandemic, Nigeria's GDP grew by 2.70% in 2021 unlike in the first quarter of 2020 where it grew by 2.18%. According to World Bank, the latest Nigeria Development Update report shows that the country has navigated the four-decades-recession as it eases COVID-19 restrictions to open major economic sectors like oil manufacturing.
Egypt is the second richest country in Africa in terms of GDP, which stands at $394.28 billion. The government estimated GDP growth at a rate of 5.4% in the 2021-22 fiscal year. RMB survey ranks Egypt as the top African economy to consider as an investment destination.
The country’s population stands at 104 million people. Its economy is defined as mixed, with emergent in the information and communications technology sector. Egypt’s leading exports include petroleum, wire, video displays, and gold. In post-Covid-19, the country’s economy bounced back to its track at a rate of 3.6% without going into recession.
South Africa is the third richest country in Africa with a Gross Domestic Product value of $329.53 billion. The World Bank estimates show that the country’s GDP will grow at a rate of 4% in 2021, 2.1% in 2022, and 1.5% in 2023. The highest performing sectors of the economy are Agriculture, Mining, and Manufacturing. In terms of exports, South Africa is the world’s number two in gold production. Other exports include corn, diamond, and fruits.
The government of South Africa has laid measures to restore the economy from the Covid-19 shambles. The country is spearheading an international alliance for the distribution of vaccines in Africa.
Kenya has one of the fastest-growing economies in Sub-Saharan Africa. The world Bank projects the country’s gross domestic product (GDP) to grow at a rate of 4.5% in 2021. According to the World Population Review, Kenya is number six on the list of richest countries with a GDP value of $106.04 billion.
Kenya’s economy is driven by key sectors such as Agriculture, Industry, Manufacturing, and Service. The tourism and hospitality sector also contributes significantly to the GDP. Despite the impacts of the global pandemic, the government is pushing towards economic recovery as it moves the economic growth agenda, the Big Four Agenda, forward.
Morocco’s Gross Domestic Product (GDP) growth is projected to recover at the rate of 4.5% in the post-Covid-19 period. The country boasts $124 billion in GDP, ranking in the fifth richest economy in Africa. RMB survey places Morocco at number 2, among the top economies to invest in Africa. This is because of good political stability, and government measures to avert the impacts of the pandemic.
The country majorly exports phosphates, electric components, inorganic chemicals, transistors, citrus fruits, vegetables, and fish. Tourism, telecoms, and the textile sector also make notable contributions to the country’s GDP.
Algeria's GDP growth rate is estimated at 1.40 % by 2021, according to Trading Economics global macro models and analysts. The country is the fourth richest in Africa with a GDP value of $151.46 billion. Algeria’s economy is majorly supported by the Mining sector. Its biggest exports are petroleum and natural gases. Agriculture also contributes to Algeria’s GDP.
The government of Ethiopia expects GDP to grow at a rate of 8.7% in the 2021/22 fiscal year. Ethiopia is the 7th richest country in Africa, with a GDP value of $93.97 billion. Covid-19 hit the country’s export sector, but according to World Bank, Ethiopia’s economy is set to rebound at a higher rate in the post-Covid-19 period.
Ethiopia’s economy is driven by industrial activities and manufacturing. Agriculture is the main contributor to GDP, with major exports in coffee, leather, textiles, natural gum, spices, and mineral products.
GDP growth in Ghana is projected to increase by 4% in 2021 and 4.1% in 2022. As the 8th richest country in Africa, Ghana boasts $74.26 billion in GDP value. According to the RMB report, Ghana is at number 6, the top economies to invest in Africa. The country’s economy is majorly supported by mining and tertiary sectors.
Ivory Coast is at number nine on the top ten richest economies in Africa, with a GDP value of $70.99 billion. According to the government, GDP is projected to grow by 6.5% in 2021. The country’s economy supports private investment in agriculture, industry, and service sectors. The country is at number eight on the list of top economies to invest in Africa by RMB.
Angola closes the list of the top 10 richest countries in Africa with a GDP value of$66.49 billion. The country’s leading sectors are mining, Agriculture, and Tourism. Angola’s major exports are petroleum products. African Development Bank estimates the country’s GDP to grow at the rate of 4% in 2021.
Africa’s economy is growing and investment drives are on the radar of the country’s major government development schemes. Other economies growing at a faster rate in Africa include Mauritius, Rwanda, and Tanzania.