The Democratic Republic of Congo
The Democratic Republic of Congo has a mixture of economic sectors such as mining, fishing, forestry, agriculture, and copper and cobalt. While the country’s total GDP of $48.46 billion may seem high in comparison to other African countries, but that is mostly due to its large population.
With 89.56 million people living
in the country, it brings the GDP per capita figure to an astounding low
of $495.08. This places the country in the top ten poorest
countries in Africa by that metric. Nonetheless, this country is a perfect
example of a mixed economy that is trying to build towards the future.
According to the African Development Bank Group,
growth dropped from 5.8% in 2018 to 4.3% in 2019, due to a slowdown in
extractives, the economy’s main driver despite a fall in the price of some raw
materials (copper and cobalt). Agriculture has suffered from low productivity
while energy shortages have hindered industrialization efforts. Growth has been
driven by domestic demand, particularly private investment and public
consumption, contributing even more to the social-economics gaps in the
country.
Nominal GDP Rank: #11
Nominal GDP Per Capita Rank: #46
Tanzania
Next on the list is
Tanzania, undoubtedly one of the most beautiful places in Africa. With a
relatively high total GDP of $61.03 billion, it is the 10th most economically
rich country in Africa. Tanzania has a
population of 59.73 million people, 6th biggest in Africa. That
brings its GDP per capita figure to $1,172. The people of Tanzania
largely rely on agricultural for a source of their income. The country has
increased in terms of GDP but there are people who still are below the poverty
line.
A markedly diversified economy, helps Tanzania
maintain steady growth, 6.8% during 20018, only shy of 2018 7.0% growth. This
diversification is characterized by robust private consumption, substantial
public spending, strong investment growth, and an upturn in exports underpinned
the positive outlook. Other sectors like tourism, mining, services,
construction, agriculture, and manufacturing are contributing factors as well.
Nominal GDP Rank: #10
Nominal GDP Per Capita Rank: #30
Sudan
Sudan is the 10th most populated country in Africa, with a population of 43.85 million people. It is also the 17th richest country in Africa, with a GDP of $31.47 billion and a GDP per capita of $728.06.
In 2012, Sudan was the 17th fastest growing economy
in the world. Largely due to the fact that it’s rich in oil and gas. The
country has managed to achieve an increase in GDP along with their dependency
on agricultural as a second source of income. Sudan is also the largest
exporters of cotton and peanuts all across the world.
The economic uncertainly in recent times has
people still a little uncertain about Sudan’s long-term growth. Currency
shortages have only added to the mixed feelings people have on the economy, but
it continues to trend upwards.
Nominal GDP Rank: #17
Nominal GDP Per Capita Rank: #42
Malawi
Malawi economics are predominantly based on agriculture, as 90% of its 19.13 million people are living in rural areas of the country. The landlocked country is located in the heart of south-central Africa and is regarded by the United Nations as an LDC – a least developed country.
Malawi total nominal GDP is set at $7.44
million and its GDP per capita is at the astoundingly low figure
of $366.53. Its agriculture sector is being dominated by tobacco
manufacturing and exporting. Tobacco exporting, alongside with tea, sugarcane,
and coffee exporting, account for around 90% of Malawi’s total export revenue.
Malawi also relies on tourism as a source of revenue, which has seen noticeable
growth in the last decade.
It continues to be a struggle for Malawi to
connect with the rest of the region, but they continue to push forward with new
and creative ways. As GDP grew 5.0% in 2019, compared to 2018 4.0% growth.
Additional, annual inflation was estimated at 9.0% in 2019, significantly
improving from its 21.7% in 2017.
Nominal GDP Rank: #38
Nominal GDP Per Capita Rank: #51
Uganda
Uganda is of the poorest nations in the world. The country’s total GDP accounting for $33.57 billion, along with a $828.06 GDP per capita is tough to overcome for the 45.74 million living there. Uganda is one of the largest countries in Africa in terms of population, but they have a hard time getting out of severe poverty. However, the country has witnessed a recent change in the economy, thanks in large part to the protection of the natural resources of the country.
In 1992, 56% of the country’s population was under the poverty line of $1.25 a day. In recent years that number has been reduced to around 25%. Government officials are still hopeful that in the coming years they will reach their goal of reducing the number of poor in its population to 10%.
There was a big push in the 1980s to make Uganda
economically liberalized, but that has diminished over the years. They continue
to look for answers that will help get so many out of a life of poverty. As
during 2019 The Ugandan economy reported a strong growth, estimated at 6.3%.
Largely driven by the expansion of services sectors, and industrial sectors
(mostly construction and mining).
Nominal GDP Rank: #16
Nominal GDP Per Capita Rank: #39
Algeria
Algeria bases most of its economy on fossil fuels and gas. In fact, 95% of Algeria’s exports are based on its advanced fuel and gas industry. With a GDP of $183.69 billion and per capita GDP of $4,229.78, Algeria is one of the five richest countries in Africa.
Due to its newfound possibilities in recent years,
Algeria has been leaning towards sustainable development to create more jobs
and ease the housing shortages it faces. The Algerian economy also offers a
host of other sectors that show some promise in putting the country’s economy
in a respectable position. These sectors include agriculture, fishing, banking,
and tourism.
Hydrocarbon, one of the country’s leading sector
that accounted for 34.2% of its total GDP, is now plummeting to less than 19%,
driving to overall GDP growth to 2.3%. While fiscal and current account
deficits are on the rise, 7.9% and 12.6% of the country’s GDP, respectively,
during 2019. Compared to 7.0% and 9.6% during 2018.
Nominal GDP Rank: #4
Nominal GDP Per Capita Rank: #9
Senegal
Senegal is limited in natural resources, forcing most of its economy to be based in agriculture, tourism and foreign exchange of crops and fish. Senegal has a population of 16.74 million, a GDP of $25.32 billion and a GDP per capita of $1,510.20. Tourism in Senegal is a vital component of its economy, and they continue to pour money into that.
Historic sites, national parks and nature reserves
in Senegal are a significant source attracting tourists from all over the
world.
As long as the rest of the economy can stay
strong, Senegal has a solid outlook going forward. As public investment in
infrastructure, agriculture, and energy are keeping the fiscal deficit at 3.6%
of GDP in 2018 and 2019, and expected to continue to do so during 2020.
Nominal GDP Rank: #18
Nominal GDP Per Capita Rank: #25
Tunisia
Tunisia is in the midst of a long reform process that has been going on for over several decades. In the beginning, the Tunisian economy surged significantly. It is now in a state of moderate growth. Tunisia has a population of about 11.8 million, a GDP of $36.2 billion and GDP per capita of $3,072.
Despite the improvement in its economic situation,
Tunisia is still trying to rebuild its economy. Right around 15.5% of its
residents are living below the poverty line and 14.7% are unemployed. Much of
Tunisia’s economy is based around tourism, as it’s an attractive destination
mostly due to affordable prices, beaches, and pleasant weather. Tunisia
attracts about 7 million arrivals per year.
The government does seem focused on fixing the
unemployment problem, which is a positive sign for the country as a whole. They
have introduced policies to help increase foreign currency reserves, limit
fiscal deficit and subsidies, and more. These small steps should help Tunisia
get out of a pretty big rut with unemployment.
Nominal GDP Rank: #15
Nominal GDP Per Capita Rank: #13
Madagascar
Despite the potential and growing interest in Madagascar as a thriving tourist destination, tourism in Madagascar remains underdeveloped, with few visitors each year in comparison to its neighboring countries. People are intrigued mostly by the unique forests and habitats. The government continues to attempt developing the tourism industry, but it’s still a huge work in progress.
Apart from tourism, Madagascar bases most of its
economy on agriculture, textile and mining industries. The population of
Madagascar is 27.69 million, its GDP stands at $12.73
billion and its per capita GDP is $470.67.
Those in charge continue to work on developing a
capital market that sticks. Government corruption has always hurt the business
environment in the country, so until that is fixed, Madagascar will continue to
struggle.
Nominal GDP Rank: #28
Nominal GDP Per Capita Rank: #50
Seychelles
Since its independence, Seychelles, the Indian Ocean island nation, has experienced an increase in GDP which currently stands at $1.65 billion. This may not sound impressive, but considering Seychelles is one of the smallest countries in Africa, with a population of 98,347, this puts them in great position with a per capita GDP of $17,154.
Seychelles’s economy is based mainly on luxury
tourism and fishing. Seychelles was economically dependent on its flourishing
tourism until the crisis of the late 1990s and early 2000s when the Seychelles
government decided to develop agriculture and fishing in order to create a diversified
economy.
The government is doing a great job of being
proactive about not becoming too dependent on tourism. They will always be
somewhat limited by size, but the economy is very strong when compared to the
rest of the continent.
Nominal GDP Rank: #51
Nominal GDP Per Capita Rank: #1
Ethiopia
Ethiopia is the second most populated country in Africa, with 114.96 million people strong. It is the 8th richest country in Africa with a GDP of $90.97 billion.
The country doesn’t produce oil, but they still
have one of the fastest growing economies on the continent. It relies on
agricultural, export coffee, cattle, gold, and leather products. It also does a
great job of leveraging the county’s 14 major rivers (including the famous
Nile) to produce energy.
An increase in private-sector involvement is
huge for Ethiopia as it continues to move forward. The goal is to eventually be
a manufacturing hub instead of relying so much on agriculture.
Nominal GDP Rank: #8
Nominal GDP Per Capita Rank: #32
Zambia Due to its rapid urbanization rate, Zambia’s economic growth is one of the fastest in Africa. Despite the significant growth, Zambia is still considered a poor country over the past decades, with a population of 18.38 million, GDP of $24.6 billion and GDP per capita of $1,344.
About 60.5% of Zambians live
below the poverty line. Agriculture is one of the most important industries in
Zambia, as it provides more employment than the mining industry. The main crops
in Zambia are cereals, but other crops include cotton, sugar, and soybeans.
The country still feels the effects of the
suspensions of donor aid, which happened back in 2018. This happened after
millions were embezzled from social welfare grants. The focus is now on getting
more private-sector involvement to help with infrastructure.
Nominal GDP Rank: #19
Nominal GDP Per Capita Rank: #27
South Africa
South Africa has a complex and awing social history, with a multiethnic society and a wide range of cultures and languages. The southernmost country has a population of 59.31 million. It is also the 2nd richest country in Africa, with a GDP of $371.27 billion and a mesmerizing GDP per capita of $6,331, that is only beaten by six other countries in Africa.
These six countries ahead of South Africa,
Botswana, Gabon, Mauritius, Equatorial Guinea, Libya and Seychelles, all have
populations under seven million people. The African Economy is largely based on
mining, agriculture, automotive manufacturing, telecommunications, and tourism.
Despite all these great figures, South Africa is still showing a high rate of
poverty and unemployment. South Africa is also in the top ten countries
in the world for income inequality.
South Africa continues to be near the top of the
class in Africa, even if they have had some issues. Macroeconomic stability has
returned to the country, which was an ongoing issue up until a couple of years
ago.
Nominal GDP Rank: #2
Nominal GDP Per Capita Rank: #7
Zimbabwe
In the past, Zimbabwe was known in Africa for its extensive wheat and cotton crops. However, since the early 2000s, Zimbabwe’s economy has shrunk considerably. Zimbabwe has a population of 14.86 million people, GDP of $22.3 billion, and GDP per capita of $1,423.
Zimbabwe’s local currency, the Zimbabwean dollar,
has reached a status of hyperinflation in the past decade, to a point
where 100 billion Zimbabwean dollars was equivalent to one US dollar.
After many attempts to restore the currency, in 2009 it was decided to abandon
it. Since then, Zimbabwe has been using foreign currencies such as the US
dollar and its economy has begun a reform process.
The government continues to put together a
reform plan, but there is no assurance that it will work. It could take years
to see any noticeable improvement in the country going forward.
Nominal GDP Rank: #20
Nominal GDP Per Capita Rank: #25
Ghana
Ghana accounts for a total GDP of $68.26 billion. The country has a rich and vast economy, placing it 9th in terms of highest GDP in Africa, right after Ethiopia.
The position of their GDP has increased with a lot of management plans that they have applied to improve the country’s position. With it being blessed with natural resources, the country continues to rely on it as a source of income. With a population of 31.07 million people its GDP per capita stands at $2,262.
Ghana’s economy continued to expand in 2019,
with real GDP growth estimated at 7.1%. High growth momentum since 2017 has
consistently placed Ghana among Africa’s 10 fastest-growing economies.
Nominal GDP Rank: #9
Nominal GDP Per Capita Rank: #17
Kenya
The eastern African country of Kenya has a population of 50.95 million people. It produces a GDP of $99.25 million ranking as the 9th richest country in Africa in terms of GDP. Its GDP per capita stands at $2,011 making it a “middle income” country according to World Bank.
Kenya leads a market-based economy, with several
government-owned infrastructures, yet maintaining a liberalized trade system
while taking advantage of its ports to the Indian Ocean. Sectors like fishing,
mining, and tourism aid the country’s growth. However, it is agriculture that
takes a major role in Kenya’s economy and labor, as about 75% of its workforce
is making a living of it. The coffee and tea industry lead the Kenyan
agriculture economy.
Once again, household consumption and investment
are the key factors of growth for Kenya. GDP grew 5.9% in 2019, while down from
6.5% in 2018, the Kenyan economy is stable. As inflation remains within the
central targets and the decrease in growth between 2018 and 2019 was mainly due
to unfavourable weather.
Nominal GDP Rank: #6
Nominal GDP Per Capita Rank: #21
Nigeria
Nigeria is the richest and biggest country in Africa. With a population of 206.14 people, a GDP of $444.92 billion and GDP per capita of $2,233, this west African country closes our list. The Nigerian economy is defined as a mixed economy emerging market, and according to World Bank, it has reached the status of lower middle income. The Nigerian economy is largely built around commerce and energy.
It is the largest trader with the USA in Africa, as
it supplies the country with around 1/5 of its total oil production. That
places Nigeria as the 12th largest oil producer in the world and the 8th larger
oil exporter. Moreover, Nigerian agricultural is a major source of employment
for the country, as around 30% of its population are employed in agriculture.
2019 showed incredible growth mainly in the
transport, oil, and information and communications technology sectors. Driving
GDP growth to 2.3%, compared to 1.9% in 2018. In addition to those, household
consumption was the key driver of growth in 2019.
Nominal GDP Rank: #1
Nominal GDP Per Capita Rank: #18
Niger
Niger is among the
poorest countries in Africa, with a population of 24.2 million, GDP of $9.72 billion and a per
capita GDP of $487.68. This puts them
amongst the poorest countries in the world. Niger’s economy is based on
agriculture (mainly subsistence agriculture), which provides jobs for most of
its citizens, and its large uranium deposits, which is actually one of the largest in the world. Despite the efforts, Niger economy struggles to
make huge strides. It is negatively affected by drought cycles, rapid population
growth, and the decline in uranium prices over the years.
Until entrepreneurial dynamism improves, the
landlocked country will struggle to really see any huge improvements. There are
some growth opportunities with the mineral exports, but the country is still
figuring out how to fully capitalize.
Nominal GDP Rank: #35
Nominal GDP Per Capita Rank: #48
Ivory Coast
The Ivory Coast enjoys a stable economy. They have a population of 26.4 million, a GDP of $45.3 billion and a considerable GDP growth of 8.5% per year. This currently puts them 4th highest in GDP growth worldwide. The vast majority of Ivory Coast residents (about 70%) are engaged in agriculture.
The leading crops in the Ivory Coast are coffee and
cocoa beans, which accounts for about 40% of the world’s production. As a
result, the economy of the Ivory Coast is heavily influenced by fluctuations in
the prices of cocoa and coffee. This led the Ivorian government to push for
greater diversification of the country’s economy. Those attempts resulted in
failure, and most of the industry is still agriculture-based.
The pro-market and pro-business reforms in the
country continue to help move the country forward during 2019 and 2020.
Analysts expect them to stay strong with year-to-year growth.
Nominal GDP Rank: #12
Nominal GDP Per Capita Rank: #21
Libya
Libya is one of the smallest countries in Africa, with a population of only 6.87 million people. It holds a GDP figure of $44.96 billion, which might not sound like a lot, but it places Libya as the 6th richest country in Africa, in terms of GDP per capita with a figure of $6835.62.
Just like many Africa countries, most of Libya
economic growth comes from oil. It accounts for over half of its GDP, and about
97% of its exports. Due to those figures, Libya has been described as the
“Upper Middle Economy of Africa” by the World Bank.
It is hard to look into the future for Libya
right now with so many moving parts in the country. From political instability
to major security threats, there are definite challenges the country must face
head-on during 2020 and 2021.
Nominal GDP Rank: #13
Nominal GDP Per Capita Rank: #6