How Africa News
Just as Africa’s economy appeared to be recovering from the COVID-19 pandemic, a slew of internal and external shocks hit, including severe weather and Russia’s invasion of Ukraine, worsening already rapidly rising rates of inflation and borrowing costs in 2022.
Although one could argue that Africa’s direct trade and financial ties with Russia and Ukraine are minor, there is evidence that the war has harmed the continent’s economies through higher commodity prices, higher food, fuel, and headline inflation.
Despite these challenges, Africa continues to be home to some of the world’s fastest-growing economies.
According to the International Monetary Fund’s latest World Economic Outlook, five of the world’s fastest-growing economies are Angola, Ethiopia, Nigeria, Kenya, and South Africa, according to Business Insider Africa.
This economy has the potential to quadruple in size, with growth expected to be 3.6% in 2023 and 3.9% in 2024.
1. Angola – Angola is set to reclaim its position as Sub-Saharan Africa’s third-largest economy, thanks to a rebound in growth linked to higher oil prices. Angola is the continent’s second-largest producer of crude oil after Nigeria, and it also produces a significant amount of rough diamonds. According to the IMF, Angola’s GDP will grow by 8.6% this year, reaching $135 billion. This is a significant increase over previous years, and Angola’s economy is expected to grow further in the coming years.
2. Ethiopia – According to the IMF, Ethiopia is on track to overtake Kenya as the fourth-largest economy in Sub-Saharan Africa. This is due to the country’s easing armed conflict and the continuation of ambitious economic reform efforts aimed at opening up one of Africa’s fastest-growing but most closed economies. According to the IMF, Ethiopia’s GDP will reach $126.2 billion this year, up 13.5% from last. This is a significant figure, and Ethiopia’s economy is expected to expand further in the coming years.
3. Nigeria – Nigeria retains its top spot in Sub-Saharan Africa’s economic rankings as the continent’s largest economy. According to the IMF, Nigeria’s GDP will reach $574 billion this year. This is a significant figure, and Nigeria’s economy is expected to expand further in the coming years.
4. South Africa – South Africa will remain the second-largest economy in Sub-Saharan Africa, according to the IMF, with a GDP of $422 billion this year. This is a significant figure, and South Africa’s economy is expected to expand further in the coming years.
5. Kenya – According to the IMF, Kenya’s GDP will grow at a slower rate of 2.4% this year as a result of the Covid-19 pandemic, drought, election jitters, and disruptions in global supply chains. According to the IMF, Kenya’s GDP will be $117.6 billion this year, trailing only Angola and Ethiopia. Despite this slower growth, Kenya’s economy remains one of the most important in the region.
