Africa is on the rise dominating the world’s top 20 list of economies projected to have the fastest growth rates in 2024.
The International Monetary Fund (IMF) notes that the overall real gross domestic product (GDP) growth for the continent is expected to average 3.8% and 4.2% in 2024 and 2025, respectively.
According to the IMF and AFDB, 11 African countries show the most promise in terms of their growth patterns, helping the continent retain its second-fastest-growing region position behind Asia.
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1. Niger
Niger is particularly impressive because it is not only the fastest-growing economy in Africa but the third fastest in the world.
The West African country is currently a junta following a coup d’état in July 2023. After the coup, sanctions imposed by the Economic Community of West African States (ECOWAS) compounded by international donors halting funding dimmed the economic prospects of the country that is one of the poorest in the world.
The country was forced to exit ECOWAS and turn its back on Western lenders who had left it high and dry. This cast a shadow on its economic growth and stability particularly because only 62% of Niger’s budget is financed by domestic revenue.
Fortunately, the country possesses significant oil deposits, and with the recent opening of a 2,000km (1,243-mile) pipeline between Niger and Benin, the oil industry is predicted to generate a quarter of the country’s GDP.
The IMF projects that the West African country will have a double-digit growth in 2024. The economy is forecast to experience the continent’s highest growth rate of 10.4%. However, this hinges on whether Niger and Benin can mend relations as the duo are currently in a conflict with recent reports alleging that rebels from Benin had even damaged a section of the pipeline.
2. Senegal
Senegal is the second fastest-growing African economy, with the country projected to have an 8.3% growth. This has been linked to its production of hydrocarbons.
The country holds substantial oil and natural gas reserves – estimated at 1.03 billion barrels and 910 billion cubic meters, respectively. This along with high potential for renewable energy and a geostrategic location on Africa’s western coastline.
As a matter of fact, Senegal recently drew the first oil from the Sangomar field. The nation’s first offshore deepwater oil development.
These oil and gas reserves once tapped will set the nation up as a key player in the energy sector.
3. Libya
Libya’s GDP is estimated to grow by close to 8% in 2024 and to continue expanding in the following years. This is majorly driven by hydrocarbon production which is projected to reach 1.5 million barrels per day by 2026, the IMF reported.
Although the nation faced several shocks in 2023 including Tropical Storm Daniel that resulted in catastrophic floods that caused extensive damage and loss of life, its economic growth was relatively unaffected majorly because the country’s GDP is based on energy exports.
“The economy remained shielded from the impact of the conflict in Gaza and the Red Sea shipping disruptions. In 2023, real GDP is estimated to have expanded by 10%, largely owing to a rebound from the oil production stoppages of 2022,” IMF wrote.
4. Rwanda
Rwanda’s economic growth has been steady and consistent with the country expecting a 6.9% growth in 2024. Inflation has also significantly reduced to 4.9% in February 2024, down from 21.7% in November 2022. This is a result of a tight monetary policy stance and favourable developments in food prices as agricultural production rebounded towards the end of 2023.
5. Côte d’Ivoire
The world’s top producer of cocoa and cashews is projected to have an average real GDP growth of 6.5% in 2024 through 2025.
The country’s focus on infrastructure, oil exploration and prudent fiscal policies is instilling investor confidence and helping drive up its economic growth.
6. Djibouti
Djibouti is set to grow at 6.5% in 2024. Djibouti is one of the smallest countries in Africa, with an area of 23,200 square kilometres and a population of about 1,000,000. This has made it limited its economy which has in turn made it exceedingly difficult for it to diversify production.
As a result, the country has become overly reliant on foreign markets, making it more vulnerable to market downturns and hampering its access to external capital.
With less than 1,000 square kilometres of arable land and average annual rainfall of only 130 millimetres, Djibouti depends almost completely on imports to meet its food needs, the World Bank noted.
Luckily, the country’s is strategically located and has a state-of-the-art port complex (one of the most sophisticated globally) which drives its economy. The country houses several military bases for foreign countries such as China, France, Italy, Japan and the United States. Moreover, the country’s location has made it a bridge between Africa and the Middle East next to some of the world’s busiest shipping lanes.
7. Ethiopia
Ethiopia is expected to have an economic growth rate of around 6.2% in 2024 with a 6.5% growth expected in 2025. Inflation is expected to drop to 20.1% in 2024 and about 18% in 2025. Moreover, Ethiopia’s current account deficit, which sits at 2.9 %, is expected to drop to 1.7% in 2025.
8. Benin
Benin is projected to have an average real GDP growth of 6.0%. The country’s economy is being driven by foreign and domestic investment and the expansion of the Glo-Djigbé Industrial Zone (GDIZ).
Prudent tax measures and a reduction in expenditure helped stabilise the country’s economy in 2023, with more fiscal policies expected to be implemented in the following years.
9. Tanzania
Tanzania’s GDP growth was at 5.3% in 2023 and is expected to rise to about 5.5% in 2024. This is a result of steady tourism and gradual stability in supply and value chains.
The current account deficit is expected to drop to 4.3% down from 6.5% in 2022/2023.
To maintain the GDP growth, the government is looking to implement a growth-friendly fiscal consolidation plan envisaged in the 2023/2024 budget.
10. Togo
Togo’s average real GDP is projected at 5.3% in 2024. An increase in public spending following the COVID-19 pandemic has helped stabilise Togo’s economy.
The country plans to reduce the deficit to 3% by 2025 by implementing effective consolidation measures.
The mining, electricity and manufacturing sectors also grew in 2023, contributing positively to the country’s economic outlook.
11. Uganda
The IMF maintains that Uganda will have an average real GDP growth of 5.6% in 2024. There has been an increase in investment and employment creation in Uganda since 2023 contributing to the East African country’s growth.
By 2026 the country’s GDP is expected to have grown to 6.6% as a result of investments in the oil sector. By 2025, the country is expected to begin oil production.
Overall, in terms of regional growth, the IMF projects Africa’s growth rate to be 3.8 per cent in 2024 from 3.3 per cent in 2023. This makes sub-Saharan Africa the second-fastest-growing region in the world after Asia, whose growth rate is 5.2%.
