Africa is blessed with a plethora of natural resources, raw materials, precious metals, and fertile soil, yet it also contains many of the world’s poorest countries. Several African economies are in ruins, poverty is widespread, and the continent’s recovery from the COVID-19 epidemic is hindered by a vaccine shortage. Furthermore, many African countries, such as , Nigeria, and Somalia, are currently at war, either with terrorist insurgents or with one another, putting further burden on their economies. My postings on Africa, such as top 5 most peaceful countries in Africa. and top 5 cleanest cities In Africa, are among the most popular on this site.
Despite all the challenges, African countries have some of the world’s fastest-growing economies. Agriculture, trade, and natural resources are expected to propel the African economy to $29 trillion in GDP by 2050.
While there are other methods for comparing the wealth of various nations, one of the most successful is to calculate each country’s gross domestic product (GDP). This is the entire value of a country’s products and services produced in a given year.
GDP is important for a number of reasons. For one thing, it provides a reasonably accurate estimate of a country’s economy’s size and growth rate, allowing policymakers and investors to make sound decisions. To put this into context, foreign investors can simply compare GDP growth rates in different countries to determine whether to invest in fast-growing economies abroad.
Here are the top 5 wealthiest African countries in terms of overall GDP.
1. NIGERIA – THE WEALTHIEST COUNTRY IN AFRICA (GDP: $480.48 Billion)
Nigeria has the most oil reserves in Africa. It has the 26th largest economy in the world. Its GDP is higher than that of many of its more developed African peers, including South Africa. It is, however, critical to comprehend. Nigeria’s wealth is concentrated in the hands of a few people. The top five wealthiest Nigerians own and control more assets than the entire country. Furthermore, the number of Nigerian millionaires has increased by 44% in the last decade.
Nigeria has the largest economy in Africa. This is primarily due to the size of its GDP. Nigeria has Africa’s highest GDP (GDP of $514.05 billion in 2021)
According to OPEC, Nigeria exports approximately 1.6 million barrels of crude oil per day, making it Africa’s largest crude oil exporter. Petroleum exports account for 10% of total GDP and more than 80% of export sector revenue.
Nigeria has an abundance of raw materials and natural resources, in addition to petroleum, which contributes to the region’s wealth. limestone, zinc, Coal, lead, tin, niobium, natural gas and iron ore are among them. There is also enough fertile land for agriculture, which accounts for more than 20% of the GDP and produces cocoa and rubber. Nigeria’s large population has contributed to the country’s status as the largest consumer retailer in Africa.
Unfortunately, despite its rapid growth in recent years, the economy has not been immune to global challenges. Low oil prices, which have impacted countries all over the world, have caused the naira to collapse, potentially causing a catastrophic economic recession. Other, longer-standing issues, such as bad government, corruption, severe poverty (82 percent of the population lives on less than $2 per day), and inadequate infrastructure, remain top of mind.
2. Egypt (GDP: $394.28 Billion)
During the presidency of Abdel Fattah el-Sisi (2014–present), the economy has been guided by Egypt’s 2030 Vision. The policy seeks to diversify Egypt’s economy. As of 2022, the country’s economy is the second largest in Africa after Nigeria in terms of nominal GDP, the sixth largest in the Middle East, and the 36th largest in the world.
Since the early 2000s, Egypt’s pace of structural reforms have aided the country’s transition to a more market-oriented economy and prompted increased foreign investment. The reforms and policies have resulted in higher macroeconomic annual growth rates. Other major issues, such as unemployment and poverty, began to decline significantly as Egypt’s economy recovered. Political stability, proximity to Europe, and increased exports benefit the country. It has a strong currency as well. Egypt is stable and well-supported by external stakeholders.
3.SOUTH AFRICA (GDP: $329.53 Billion)
South Africa’s economy is the third largest in Africa in terms of GDP and the most industrialized, technologically advanced, and diverse economy in the continent. South Africa is one of only eight African countries with an upper-middle-income economy.
Although the natural resource extraction industry remains one of the largest in the country, contributing US$13.5 billion to the GDP annually, South Africa’s economy has diversified since the end of apartheid, particularly towards services. The financial industry contributed $41.4 billion to South Africa’s GDP in 2019.
South African-based financial institutions managed more than US$1.41 trillion in assets by 2021. As of October 2021, the Johannesburg Stock Exchange’s total market capitalization was US$1.28 trillion.
4. ALGERIA (GDP: $151.46 Billion)
Algeria has the fourth-largest GDP in Africa, at $151.56 billion, according to Statista.
Algeria is classified as an upper-middle-income country by the World Bank. The country is heavily reliant on energy exports of natural gas and oil. However, it faces numerous economic challenges, including high unemployment among women and youth, as well as regional disparities. This regional inequality has resulted in periodic unrest between Berbers and Arabs.
5. MOROCCO (GDP: $124 Billion)
Morocco ranks 5th on this list of Africa’s wealthiest countries, with a GDP of nearly $124 billion. This North African country’s economy is multifaceted and stable, with growth in a variety of industries over the last decade. It is Africa’s second-richest non-oil producing country.
Mining and manufacturing are the backbones of the country’s economy. Industry accounts for 30% of Morocco’s GDP, agriculture accounts for 15%, and services account for 55%. This is supplemented by a growing tourism industry, with locals welcoming tourists and the government putting a strong emphasis on attracting visitors to the country known for its attractions.
20 The Wealthiest Countries in African 2021 ranked by GDP According to statista
