Africa is a breathtaking continent with plenty of natural resources, raw materials, precious metals, and rich soil. Agriculture, natural capital, and commerce are the key economic factors. It was the fastest-growing continent in 2013 and continues to be a centre of capital, creativity, and innovations. With continued growth and improvement, the African economy is expected to hit a GDP of $29 trillion by 2050, making it a significant player in the global economy. Much of the countries in this region, according to the World Bank, will achieve “middle income” status over the next decade, with a GDP per capita of at least $1,000. This is why it is very interesting to compare the top African economies, for now, to become able to make the proper forecasts for the future.
With a population of over 200 million people, this West African nation is an important part of the African economy. Nigeria is Africa’s wealthiest economy, with a GDP of just under $450 billion dollars. Finance, transportation, infrastructure, tourism, and a surplus of crude oil are all major contributors to the country’s large GDP. According to OPEC, the country exports about 1.6 million barrels of crude oil a day, making it Africa’s biggest crude oil exporter. Petroleum exports account for 10% of the country’s overall GDP and over 80% of the export sector’s income.
There is still enough fertile land for agriculture, which accounts for over 20% of GDP and produces cocoa and rubber. Nigeria’s huge population has seen the country become Africa’s largest consumer retailer, and its technologically savvy citizens have added to the country’s fast-growing tech industry. Nigeria, with its colourful cultural diversity, diverse ethnicities, natural beauty, and huge population, remains Africa’s richest nation and the continent’s top producer in terms of GDP production.
As Africa’s second richest economy, this southernmost nation is a major player on the continent. The nation is considered one of the fastest-developing in the world, with a rapidly industrialized economy, modern technology, and a GDP of over $350 billion. Political and economic instability, on the other hand, have hampered its ability to reach its full potential. After witnessing four quarters of negative GDP growth, the nation was forced into recession, and progress has stalled, with GDP increasing by just 0.2% in 2019. South Africa also has the world’s highest rates of inequality.
Due to the results of the COVID-19 (coronavirus) pandemic, Uganda’s actual gross domestic product (GDP) rose at 2.9% in FY20, less than half of the 6.8% reported in FY19. In FY21, GDP is predicted to rise at a similar rate. Due to a domestic lockdown that lasted more than four months, border closures for all but critical cargo, and the spillover consequences of shocks to foreign demand and supply chains, economic growth slowed in the second half of FY20.
As a result, public spending fell sharply and private demand slowed, wreaking havoc on the industrial and service sectors, especially the informal service sector. Those are especially the financial industries that are difficult for the government to regulate, for example, forex or crypto-industry. As a result, we see the increased demand for Forex brokers in Uganda in 2021, from people to generate some financial profits during the economic crisis. Furthermore, although lower oil prices are good for Uganda’s trade balance and real development, they put investment plans in the Ugandan oil field, which was supposed to start producing and exporting by 2024/25, at risk.
For several years, this ancient land in Northern Africa retained the title of Africa’s richest nation. The currency, on the other hand, was seriously harmed, and foreign exchange reserves plummeted as a result of the Arab revolt in 2011. Egypt is currently the third richest country on the planet, with a new GDP of over $300 billion.
Petroleum and natural gas exports, tourism, wholesale and retail trade, manufacturing, and real estate are the mainstays of the Egyptian economy. In recent years, the state’s economy has diversified away from raw material production, with service-based jobs accounting for more than half of the GDP. However, Egypt may face socio-economic problems as a result of a significant percentage of the population living in poverty, unemployment, a shaky healthcare system, and a global slowdown.
Morocco ranks fifth on this list of Africa’s wealthiest nations, with a GDP of nearly $120 billion. This North African country’s economy is diverse and resilient, with expansion in a variety of sectors over the last decade. It is Africa’s second-richest non-oil-producing country. Mining and manufacturing are the mainstays of the country’s economy. Industry accounts for 30% of Morocco’s GDP, agriculture accounts for 15%, and services account for 55%. This is bolstered by the burgeoning tourism industry, with residents accepting travelers and the government putting a heavy focus on drawing visitors to the country’s well-known attractions.
Morocco is the world’s third-largest source of phosphorus, relying heavily on agriculture. The country has reaped significant benefits from its diverse exports, which include electrical appliances, aircraft, and vehicle components, among other things. In addition, the mobile and textile sectors contribute significantly to the economy.