in ,

Top 5 African Countries To Invest In 2023


The African economic outlook for 2022 demonstrated the continent’s resilience and resolve, which many pundits and opinion leaders believe will transform the global economy if its inherent potential is properly harnessed. Many African countries faced internal crises ranging from political instability, rising debt, and high inflation that affected the economy while still recovering from the lingering economic shock of a global pandemic.

Foreign exchange issues, banditry, terrorism, and other forms of armed conflict all altered the political dynamics and economic outlook.

Nonetheless, African leaders’ commitment and synergy in overcoming the myriad of challenges resulted in the development of various strategic economic policies and programs aimed at revitalizing the economy.

Because of the vast untapped opportunities in agriculture, natural resources, human capital, technology, manufacturing, and service sectors, Africa has become the focal point for investment.

In November 2022, the African Development Bank announced that the Africa Investment Forum, Africa’s premier investment platform, had attracted $31 billion in investment interest in Africa. In addition to the $32.8 billion from the restructured 2021 Africa Investment Forum Market, the Forum has attracted a total of $63.8 billion in investment interest in the 2022 fiscal year.

2023 Economic Outlook

Forward to 2023, African economies are likely to experience economic growth and downturns as a result of internal and external shocks, which could undermine development projections and create instability. However, it is expected that the majority of the region’s countries will pass.

In the midst of a global economic slowdown, resource-intensive economies and exporters may face difficulties due to unfavorable market conditions, price pressures, and stiff competition.

Inflation control remains a challenge, as most countries experienced high inflation in 2022. Many countries will most likely maintain tight monetary policies, while the cost of non-domestic capital will rise significantly in some countries. Many countries’ heavy debt remains a source of concern, as does the burden of debt servicing.

Climate change, election cycles, political instability, food security, arms proliferation, and lingering insecurity remain the primary threats to the continent’s economic stability.

However, Africa is focusing on economic resilience and sustenance by attracting long-term investments in various sectors of the economy. The African Continental Free Trade Area is a positive step that is expected to accelerate in 2023. The private sector, viewed as the main driver of the economy, is expected to attract massive interest that will turn the continent around.

Investment deals for 2023 are already pouring in, signaling an Africa with a brighter prospect in 2023:

In February 2022, the EU and the Gates Foundation announced a five-year investment of more than 100 million Euros ($113.4 million) to support the establishment of an African drugs regulator, which will increase drug and vaccine production on the continent.

Bloomberg announced in October 2022 that South Africa and Indonesia will receive a combined $1 billion from the Climate Investment Funds for their coal industries.


The Financial Post reported in July 2002 that British International Investment, the UK government’s development finance arm, plans to invest $6 billion in Africa over the next five years in renewable energy, women-owned businesses, and digital infrastructure.
Bloomberg reported in March 2022 that Netflix intends to invest $63 million in South Africa’s creative industry by 2023.

Etisalat recently announced its intention to invest in Vodafone’s African business in December 2022 in order to increase its presence on the continent.

Equinix EMEA president Eugene Bergen stated in an interview that the company plans to invest $160 million in South Africa Data Center Entry in December 2022.

Visa CEO Al Kelly announced at the US-Africa Business Forum in December 2022 that the company will invest $1 billion in Africa over the next five years.

Top Five Prospective African Countries to Invest In 2023

We look at the Five Prospective Countries for Investment in 2023, drawn based on their GDP, GDP growth rate, export, population size, population growth rate, and Size of agricultural land area.


Nigeria will most likely remain the top investment destination and Africa’s largest economy, with a GDP of $440.78 billion in 2021 (the largest on the continent) and expected to reach $454.00 billion by the end of 2022. With an annual GDP growth rate of 2.25% in the third quarter of 2022, projections indicate that GDP could reach $468.9 billion in 2023. The current population is around 219.5 million, with a 2.62% growth rate projected to reach 222.1 million by 2023.


Nigeria’s demography shows that the country has a younger population, indicating a country with a labor force that is not yet being utilized for production. Africa has vast arable lands for agricultural purposes that, if put into active production, can yield greater fortunes. Nigeria has the world’s second largest agricultural land area, with 69.4 million hectares (second largest in the continent). Agriculture is still underdeveloped, but it has enormous potential for wealth generation.

The financial sector continues to expand and dominate the tech startup landscape. The successful acquisition of Nigeria Paystack by US payment firm Stripe in 2020 has piqued the interest of international investors in Africa’s up-and-coming businesses. With the recent successful discovery of a new Oil and Gas field, the Kolmani Oil and Gas field, which has already attracted a $3 billion investment, the oil industry has faced challenges over the years, but it remains an active investment opportunity.

Aside from the mainstay of the economy, oil and gas, Nigeria has large deposits of other mineral resources that have yet to be explored. In November 2022, GDP per capita was $2400, with a projected increase to $2,500 in 2023. Nigeria hopes to surpass the $43.8 billion mark in total exports in 2021 (second in Africa) through massive industrialization and agricultural revolution in 2022 and beyond.

South Africa

South Africa has the world’s second largest economy, with a projected GDP of $419.9 billion in 2021. (second largest in the continent). South Africa’s GDP could reach $426.6 billion by the end of 2022, representing a 4.1% increase over the previous year, and 430.9 billion in 2023, representing a 1.1% increase over the previous year.

With $96 million hectares of agricultural land (the largest on the continent), South Africa has a huge opportunity to attract enough investment in the industry. The population is currently 60.1 million and is expected to grow by 1.28% to 61.9 million by 2023. South Africa has mineral deposits with great potential if the right frameworks are in place to attract investors.

South Africa has a strong and independent judiciary, a strong financial sector, press freedom, and political stability that adheres to the Rule of Law. South Africa’s GDP per capita is expected to reach $7200 by the end of 2022 and to remain there in 2023. South Africa hopes to surpass the $130.64 billion mark in total exports in 2021 (first in Africa) through increased domestic production and diversification in subsequent years.


Egypt has a land mass of 1.002 million km2, of which 3.9 million hectares are agricultural land mass available for mass production of agricultural products. The GDP in 2021 was $404.1 billion (the third largest in the continent). GDP increased by 5.4% year on year in the first quarter of 2022 and is expected to reach $426.3 billion by the end of 2022. The GDP is expected to reach $451.95 in 2023, with an annual growth rate of 4.4%. Egypt has a young population of 107.3 million people as of early December 2022, with a projected increase to 111.7 million by 2023.

GDP per capita is expected to reach $3170 in 2022 and to remain around that level in 2023. Egypt has enjoyed enough peace, political stability, and steady growth in recent years to make it a safe haven for investors. The tourism industry is expanding and attracting more visitors. Egypt exported goods worth $43.6 billion in 2021, and this figure is expected to rise in subsequent years as the country continues to implement sound policies to address its challenges.

Egypt’s geographical advantage as a transcontinental country provides opportunities and possibilities for economic growth. Egypt’s foreign reserves stood at $33.5 billion as of November 2022.


The oil and gas industry has continued to be a major source of foreign exchange and revenue for the country. The GDP in 2021 was $168 billion. It grew by 1.60% in the first quarter of 2022 and is expected to reach $173 billion by the end of the year. According to projections, GDP will likely reach $177.1 billion in 2023, with an annual growth rate of 2.6%. The agricultural land area is 41.3 million hectares, which is suitable for investment.

The total export in 2021 was $42.04 billion, and it is expected to rise in subsequent years. Algeria will attract more investment and reap huge benefits from a sustained effective growth strategy that will harness all of the potential in various sectors of the economy.

The population stood at 45.2 million in 2021 and will reach 46.6 million at a growth rate of 1.7% annually, as projected.


Kenya, like Nigeria, has attracted massive investment in the financial industry, and Fintech has remained dominant and is expected to expand further in the coming years. Kenya is unquestionably the most advanced country and the largest economy in East Africa, with a total GDP of $110.3 billion in 2021 and expected to reach $116.4 billion by the end of 2022 at a 5.5% annual growth rate.

According to projections, GDP will likely reach $122.3 billion in 2023, with a yearly growth rate of 5.2%. Kenya’s total exports are expected to exceed $11.6 billion in 2021, with subsequent years likely exceeding that figure. According to projections, Kenya’s population will reach 57.4 million in 2021, with a yearly growth rate of 2.2%. Kenya has a land area of 582,646 km2, of which 27.6 million hectares are agricultural land available for mass production of agricultural products.

Africa, home to the world’s fastest-growing economies and 17% of the global population, will almost certainly see increased investment in 2023. Africa is poised to continue attracting massive investment with political stability, improved ease of doing business, improved infrastructure, adequate security, improved monetary and fiscal policy, and respect for the Rule of Law.

President of Microsoft Satya Nadella said, “…the right way to think about Africa in my view is, it is the continent of the 21st century…”



Written by How Africa News

Leave a Reply

Your email address will not be published. Required fields are marked *

ten + seventeen =

CAF President Patrice Motsepe

Africa Can Reach Final Of 2026 World Cup – CAF President

Jamaican born Woman Becomes Marine Corps First Black Female Two Star General

Jamaican-born Woman Becomes Marine Corps’ First Black Female Two-Star General