The second fastest rising economy of the world, Africa has been boasting a booming economy for quite a while now. The African economy mostly comprises of industry, trade, agriculture as well as human resources.
As per the market reports, the continent is forecasted to witness a rise in GDP by 6%+ annually between 2013 & 2023. The recent growth in the economic sphere of the continent can be credited to the increasing youth populace here as well as enhanced sales in services, commodity & manufacturing.
In 2018, a lot of African countries emerged to be some of the fastest economies in the world.
The post below offers a brief on the top 10 fastest growing economies in Africa.
Libya stands at #1 in the list with a prediction of 10.8% economic growth in 2019, as per the data from the IMF.
The country’s economy mostly depends on its huge oil reserve and its oil revenues account for more than 50% of its total GDP. Added to petroleum, its other major natural resources comprise of gypsum & natural gas.
- Libya hosts the biggest oil reserve across the continent and is a chief contributor in international supply of sweet crude.
- It has achieved the status of “Upper Middle Income Economy” by the esteemed World Bank.
- Libya enjoys a high GDP/capita thanks to its small population & strong revenues from energy scene.
The country has been predicted to witness 8.5% economic growth in 2019 compared to 7.5% in 2018. It’s the booming industry sector in the nation which accounts for the rising economy scene in Ethiopia.
The 3 major industry sectors which propelled the economic growth here are manufacturing, electricity and construction. In fact, enhancements in both industrial & agrarian scenes have already invited several FDIs which have further pumped the economic growth in Ethiopia.
- Ethiopia boasts of a huge population amounting to 107 million of which 30% is represented by the youth
- The country hosts the biggest water reserve in the continent which has facilitated immense growth in Ethiopia’s hydroelectric energy industry
- Ethiopia is a major coffee & maize exporter in the world
Rwanda is forecasted to experience an increment in GDP by 7.8% in 2019 compared to 7.2% in 2018.
One of the main reasons behind the high rise in the economic sector in the country is its young populace which comprises of more than 50% of Rwanda’s total population. Another major factor that has contributed to this growth is improvement in 3 sectors- transportation, retail & wholesale as well as communication & information.
- Rwanda has been able to sustain a steady annual growth of 7.33% from 2000-2018
- Coffee is a chief cash crop for the country
- Rwanda is implementing fiscal consolidation program to support better economic growth & battle poverty
Ghana will experience 7.6% economic growth this year compared to 6.3% last year.
The nation’s economy represents a rising digital-based hybrid economy, driven by manufacturing & export of various digital tech goodies as well as assembly & export of ships & automobiles.
Moreover, the country is also rich in industrial minerals and even exports massive quantity of hydrocarbons. The booming real estate sector in the country is another major factor behind Ghana’s high growth in the economic sector.
- Ghana is the world’s 7th largest & 9th largest gold & diamond producer
- The Ghana Stock Exchange is the fifth biggest stock exchange in Africa
- Ghana boasts 5th biggest sweet crude oil reserve in Africa
The country is expected to witness around 7.0% economic growth in 2019. Ivory Coast represents the biggest economy across West African Economic & Monetary Union and it boasts 40 percent of total GDP of monetary union.
The major reasons behind Ivory Coast’s economic rise are its close alliance with France since 1960’s, diversification in agricultural exports as well as steady FDIs.
Interestingly, the economic sector in Ivory Coast has shown faster growth compared to most of the other African nations since independence. A chief contributor to it is possibly taxes on the export agriculture.
- Ivory Coast is the biggest cocoa beans exporter of the world
- The country has been able to sustain 5.17 percent growth rate on an average from 1961-2018
- More than 50% of the total population of Ivory Coast is within 24 years
Senegal is predicted to witness a GDP of 6.7% in 2019.
The chief industries that have contributed heavily to the economic growth in the country are financial services & trade, fishing and agriculture. Other major industries here include mining, food processing, textiles, chemicals, artificial fertilizer, refinement of imported petroleum as well as tourism.
Senegal is a principal exporter of cotton, fabrics, chemicals, calcium phosphate, groundnuts and of course fish. India represents the main foreign market for exports from Senegal, followed by the US, Italy & the UK.
- Senegal boasts a prolonged exclusive fishing arena stretching to 12-nautaical-miles
- Over 60% of populace in the country is represented by people under 25
- Senegal has largely received help from international donors in its economic reforms
Tanzania is forecasted to witness 6.6% economic growth in 2019 compared to 5.8% in 2018.
The country’s economy is primarily based on revenues from the agrarian sector. Some of the principal cash crops of Tanzania are maize, cassava, sweet potato, beans and bananas.
However, the recent economic growth boasted by Tanzania can be largely credited to amazing developments in its communication, mining, construction, water supply as well as trade & repair industries.
- More than 50% of total population of the country comprises of people below the age of 25
- Tanzania has made serious efforts in lowering its trade deficit through improvement in import-export ratio which has rewarded it with solid economic growth in recent times
- Tanzania was able to withstand the Great Recession of 2008 thanks to its solid gold mining sector
Benin is expected to experience 6.35 economic growth in comparison to 6.0% in 2018.
The country’s economy is largely based on its subsistence agriculture, regional trade and cotton production. Cotton production & export in the country single-handedly constitutes 40 percent of its GDP.
Benin has shown a rising economic growth in recent times. Apart from agriculture & cotton export, the service sector has positively contributed to the booming economic state of the nation.
- Benin’s strategic geographical location largely facilitates its trade and tourism endeavors with neighboring states
- Benin has launched its Benin Revealed 2016-2021 plan which focuses on improvement in public investments for infrastructure, tourism, agriculture and basic services
- Benin demographic is mostly comprised of young people
Uganda is forecasted to show a growth of 6% in 2019.
The country has been showing a steady economic growth since the 1990’s. Uganda represents a huge and diversified diaspora, residing mostly in the UK and the US.
It’s broad diaspora has immensely contributed to the economic growth of the country via remittances & other types of investments. The nation even acts as a major economic hub especially for its neighboring nations including South Sudan, Rwanda and Democratic Republic of the Congo.
- While agriculture has been the primary contributor to Uganda’s GDP it has been replaced by the service sector today
- Uganda has shown an incredibly steady growth the economic sector for long
- The country hosts large reserves of natural gas & crude oil
Kenya is expected to see 6.1% economic growth in 2019, an increment from 6.0% in 2018.
The Kenyan economy earns most of its GDP from the services sector, followed by agriculture. Moreover, improvements in higher education, tourism, telecommunications and agriculture can be credited for the expansive economic scene here. It’s to note here the telecommunication as well as financial services sectors contribute to 62% GDP for the country.
- Agriculture & tourism are principal sources of foreign-exchange revenue for Kenya
- Kenya is dubbed as the best industrially developed country across African Great Lakes
- Kenya is a beneficiary of the USAGOA