According to the Economic Commission for Africa’s (ECA) report on Recent Economic and Social Developments in Africa, African countries are expected to hold the world’s top ten fastest-growing economies by 2024.
Niger, Senegal, Ivory Coast, the Democratic Republic of the Congo, and Rwanda are predicted to emerge as Africa’s most significant development drivers in 2024.
According to Adam Elhiraika, Director of the ECA’s Macroeconomics and Governance Division, Africa will be the fastest-growing developing area in 2023, trailing only East Asia and South Asia.
According to the analysis, the continent’s growth rate is predicted to increase from 2.8% in 2023 to 3.5% in 2024 and 4.1% in 2025, driven mostly by net exports, private consumption, and gross fixed investment.
According to the research, Niger and Senegal are likely to experience significant economic development, driven mostly by increased hydrocarbon production and exports.
Niger’s growth will be driven by a rebound of agricultural production, which is subject to adverse weather conditions, as well as an increase in crude oil production.
Recent military coups and regional sanctions have hampered economic activity and resulted in considerable societal costs.
Senegal’s economy will be driven by increased private and infrastructural investments. However, the participation of people from up to 15 African countries in this year’s elections, including Senegal’s recent presidential election, may have an impact on short-term economic growth and development.
The Democratic Republic of the Congo (DRC) is likely to see growth led by the extractive industry, notably with the opening of new oilfields.
Meanwhile, Rwanda’s growth will be driven by private consumption and investment.
Elhiraika highlighted Africa’s vulnerability to tighter monetary and fiscal conditions, as well as debt sustainability problems.
Climate disasters and harsh weather will continue to harm agriculture and tourism, while geopolitical instability will hurt specific African subregions.