Africa is an amalgamation of countries with different economies and resources. Over time, many of these countries are still seen as the poorest despite the rich resources at their disposal. Things such as conflicts, corruption and weak institutions contribute to the increasing poverty levels across the continent.
A report released earlier in the year ranked countries across the world per their Gross Domestic Product, a standard that measures the standards of living in any country. The report by the Focus Economics determined the GDP of these countries until 2022, and in the bottom ten of the list are five African countries.
Scroll through to find out which countries are the poorest on the continent.
At number five in Africa and nine in the world is Tanzania, with an expected GDP of $1112 per capita in 2018. This is based against a steadily growing economy and a decrease in poverty rate. However, the number of poor people has not reduced, largely because of high population growth over this time.
According to Focus Economies, Tanzania’s economy is dependent on infrastructure, agriculture and improved business environment. However, it would be marred by President John Magufuli’s shake up in the mineral exports and weakness in the banking sector.
At number six globally, Ethiopia is predicted to have a GDP of $938 per capita in 2018. Although it is currently the fastest growing country in Africa, it still has a high number of poor people. Prospects seem to have improved with the changes made by Prime Minister Abiy Ahmed.
Uganda comes in third in the world due to the slow growth of the economy and an equally slow decline in poverty. With a projected GDP per capita of $738, Uganda is faced with quite a number of challenges including the adverse weather and private sector constraints. The tax imposed on mobile money and social media could also have an impact on the GDP.
Mozambique is the second poorest country in Africa and the world, with a GDP per capita of $486. The discovery of natural gas in the country tremendously improved the economic prospects but the benefits have yet to be acquired. For one of the poorest countries in Africa, Mozambique also boosts of internet speeds faster than that of the U.K.
Democratic Republic of Congo
DR Congo is the poorest country in the world when it comes to the GDP. Despite its natural resources, this vast country is projected to get $468, GDP per capita in 2018. The political turmoil following Kabila’s claws on power and fiscal policies that included a mining code proposed in January influenced the projections, which will also be impacted by two Ebola attacks in the year as well as the upcoming elections. Even so, FocusEconomics project an improvement of the economic growth in 2019.