Countries in East Africa have vibrant economies as demonstrated by their strong showing on the list of top 10 economies in Africa where Kenya and Tanzania are listed. The e Omuse of Countries in East Africa are also listed in top 10 fastest growing economies in Africa. Rwanda and Cote de Voire leads with 6.2% GDP growth rate in 2023 followed by Benin at 5.6%. Uganda Tanzania and Kenya come 4th, 5th and 6th with 5.4%, 5.2% and 5% GDP growth rates in 2023 respectively. The Four countries in East Africa are therefore found in the top 6 fastest growing economies in Africa with diversified economy and strategic initiatives make East Africa a key driver of growth in the continent.
East Africa
Overall, East Africa growth is estimated to have moderated to 4.2% in 2022 from 5.1% in 2021. However, it is projected to recover to the pre-pandemic average above 5.0% in 2023 and 2024. While the production structure in East Africa is relatively diversified, countries in the region are largely net importers of commodities.
KENYA
The growth of the real gross domestic product in Kenya was forecast to increase between 2023 and 2028 by in total 0.4 percentage points. This overall increase does not happen continuously, notably not in 2028. The growth is estimated to amount to 5.33 percent in 2028.
As described by the International Monetary Fund, this indicator describes the annual change in the gross domestic product at constant prices. This is expressed in national currency units. Here the gross domestic product represents the total value of the final goods and services produced during a year.
TANZANIA
AFDB forecast that Tanzanias Real GDP growth is projected to rise to 4.7% in 2022, 5.3% in 2023 and 6.3% in 2024, driven by the sustained recovery in tourism and gradual stability in supply and value chains. Inflation is projected to increase to 4.7% in 2023 due to higher food and energy prices before moderating to 4.0% in 2024 due to better agricultural performance.
GDP in Tanzania is expected to reach 79.72 USD Billion by the end of 2023, according to Trading Economics global macro models and analysts expectations. In the long-term, the Tanzania GDP is projected to trend around 83.71 USD Billion in 2024 and 126.61 USD Billion in 2025.
Growth is projected to reach the long-run potential of about 6 percent in 2025. Tanzania’s headline inflation was substantially lower than many regional economies and kept declining since the beginning of 2023.
In their forecast Tanzania will be 6th largest economy by 2030 with a GDP of 230bn USD overtaking Kenya which will have a GDP of 217bn USD. At the top will be Nigeria (1640), South Africa (974), Ethiopia (375), Ghana (323) and Angola (293). This forecast assumes the current rate of growth of 7%.
However using USD GDP terms without equalising them for purchasing power Tanzanian economy is the 9th in Africa with a GDP of 23bn USD while Kenya’s is 5th with 36bn USD and in 2030 Kenyan GDP is forecasted to be 109bn at the same position of 5th and Tanzania will move to 7th position with a GDP of 84bn USD. Three sectors of the Tanzanian economy would ensure this growth and these are Agriculture, Mining,Power(Electricity), Oil and Gas.
Africa will be at a crossroads of economic transformation in 2023, with the continent’s ten major economies serving as significant drivers. These economic powerhouses are molding the story of a dynamic and diverse continent, each with its own set of strengths and difficulties.
UGANDA
KAMPALA, Sept 14 (Reuters) – Uganda’s economy is likely to grow by 6.5% in the 2024/25 financial year, its finance minister said on Thursday, accelerating slightly from expected growth in the current year and driven by the industrial, services and agriculture sectors.
The government forecasts the economy will grow 6% in the 2023/24 financial year which ends in June 2024.
Finance Minister Matia Kasaija said public debt as a percentage of gross domestic product (GDP) had declined to 47% at the end of June from 48.4% a year earlier.
There had been “a slower rate of debt accumulation, in line with government’s commitments to fiscal consolidation,” Kasaija told an event at which he presented the government’s budget strategy.
In absolute terms total public debt as at end of June stood at 86.8 trillion Ugandan shillings ($23.33 billion), compared with 78.8 trillion shillings in June 2022, but economic growth meant its share of GDP shrank.
The World Bank last month halted all new lending to Uganda to protest the passing of a tough new anti-gay law.
This month, ratings agency Fitch affirmed Uganda’s rating at B+ with a negative outlook, citing problems with accessing cheap credit after the World Bank move.
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Overall the size of Uganda’s economy is projected to hit US$ $63.36 billion in 2024/25, according to the finance ministry.
On Uganda, AFDB estimates that Real GDP grew an estimated 6.3% in 2022, more than the 5.6% in 2021, despite higher commodity prices, tighter financial conditions fueled by Russia’s invasion of Ukraine, and continued global supply chain disruptions. Agriculture, notably food crops, performed well, supported by good rains, while growth in industry weakened as output in construction waned. Services also performed well as trade and repairs and the health subsector demonstrated strong growth.
Outlook and risks
GDP is projected to grow 6.5% in 2023 and 6.7% in 2024, assuming any global growth slowdown will be short lived. This expansion is projected to be supported by stronger growth in East Africa, while the Chinese economy has eased lockdowns, reducing global supply chain disruptions, supporting higher growth. Following the final agreements in 2022, the oil sector is ramping up investments, underpinning growth beyond the medium term. Although inflation is expected to slow, it is projected to remain above the central bank’s medium-term target of 5%. The fiscal position is projected to improve, reflecting consolidation efforts. External risks are tilted toward the downside, notably a prolongment of Russia’s invasion of Ukraine and continued supply chain disruptions, while pockets of regional insecurity continue to pressure security-related spending. Domestic risks relate to unexpected increases in public spending on infrastructure amid weak tax revenue
By Business Day
TOP 10 ECONOMIES IN AFRICA
African economies face challenges such as poverty, inequality, corruption, and conflict, but they also benefit from a young, expanding population, enormous resources, and growing global linkages. Governments strive for advancement by investing in education, healthcare, and infrastructure, all while maintaining regional peace and stability.
From Nigeria, the continent’s largest economy, to the vibrant economic landscapes of Egypt, South Africa, and beyond, these nations influence regional dynamics and leave a lasting imprint on the global stage.
These 10 economies are driving the continent’s economic growth and are becoming more significant in the global economy, according to trading economics.
Nigeria Nigeria has Africa’s largest economy, with a GDP of $477.38 billion in 2023. Nigeria is a big oil producer with a population of more than 225 million people. Its economy is mostly driven by oil exports, rendering it sensitive to global oil price changes. Despite this, Nigeria has a booming services industry, a young population, and diversification possibilities.
Egypt Egypt is Africa’s second-largest economy, with a GDP of $475.23 billion in 2023. With a millennia-long history, the country has a diverse economy, with agriculture, manufacturing, and services all playing important roles. Tourism is a significant contributor, attracting millions of visitors to experience the pyramids and temples. In 2023, the country’s population is estimated to be 113 million people.
South Africa With a GDP of $405.71 billion in 2023, South Africa is Africa’s third-largest economy. It has a thriving mining industry, manufacturing, and a rising technological industry. However, the country is confronted with issues such as significant unemployment, the country’s population is estimated to be 61 million people.
Algeria Algeria is the continent’s fourth-largest economy, with a GDP of $195.42 billion in 2023. Algeria has a population of about 44 million people and is a major oil producer.The Algerian economy is primarily reliant on hydrocarbon resources, specifically natural gas and oil. Despite this reliance, the government has worked to diversify the economy by investing in infrastructure and renewable energy.
Morocco Morocco is Africa’s fifth-largest economy, with a GDP of $138.05 billion in 2023. Morocco is a popular tourist destination with a population of more than 37 million people. Morocco is well-known for its thriving culture and tourism industry. To lessen its dependency on agriculture, it has prioritized the development of its manufacturing industry, automotive sector, and renewable energy.
Ethiopia Ethiopia is Africa’s sixth-largest economy, with a GDP of $120.37 billion in 2023. Ethiopia is one of the world’s fastest-growing economies and is witnessing rapid economic expansion, mainly in part to government investments in infrastructure and manufacturing. It has grown in popularity among overseas investors, the country’s population is estimated to be 115 million people.
Kenya Kenya is Africa’s seventh-largest economy, with a GDP of $115.99 billion in 2023. Kenya’s population exceeds 55 million people. Kenya is an important participant in the East African area, with a burgeoning technological sector, agricultural exports, and a thriving tourism business centered on its gorgeous national parks and wildlife.
Angola With a GDP of $121.42 billion in 2023, Angola is Africa’s eighth-largest economy. Angola is a major oil producer with a population of more than 33 million people, but the government has been promoting diversification, particularly in agriculture, mining, and manufacturing. Because of its strategic location on the Atlantic coast, it is an important player in trade and commerce.
Tanzania Tanzania has Africa’s ninth-largest economy, with a GDP of $77.06 billion in 2023. Tanzania is a popular tourist destination with a thriving agricultural industry, as well as an abundance of natural resources such as minerals and agricultural products. The country has prioritized infrastructure, agriculture, and manufacturing development.Tanzania has a population of over 63 million people as well.
Ghana Ghana is Africa’s tenth-largest economy, with a GDP of $72.84 billion in 2023. Ghana has a population of about 32 million people and is a significant exporter of gold and cocoa.Ghana is drawing major foreign investment due to its stable political climate and developing oil industry. The country has made significant progress in the development of its infrastructure, education, and healthcare sectors.
The growth of the African economies is good news for the continent and for the world. Africa is a young and dynamic continent with a lot of potential. As the African economies continue to grow, they will create new opportunities for businesses and consumers around the world.
The expansion of African economies is excellent news for the continent and the rest of the world. Africa is a vibrant and dynamic continent with enormous promise. As African economies expand, new opportunities for firms and consumers around the world will emerge.
Top 10 Fastest Growing Economies in Africa
GDP growth: Top 10 fastest growing economies in Africa in 2023
Business Insider Africa
November 9th 2023, 1:06:57 pm
Kigali: A Beacon of Progress in the Heart of Africa’s Economic Resurgence
• Business Insider Africa presents the top 10 fastest growing economies in Africa in 2023.
• The list is based on findings from the Africa Development Bank report titled “From Millions to Billions: Financing the Development of African Cities.”
• Visit africa.businessinsider.com for more business stories.
In the bustling economic landscape of Africa, some nations are shining brighter than ever. Based on findings from the Africa Development Bank report titled “From Millions to Billions: Financing the Development of African Cities,” let’s take a closer look at the top 10 fastest-growing economies, unravelling their stories of growth and potential.
1. Rwanda (GDP Growth: 6.2%): Rwanda, the land of a thousand hills, boasts a remarkable GDP growth of 6.2%. This East African nation is not just a scenic beauty; it’s a growing economic force.
2. Côte d’Ivoire (GDP Growth: 6.2%): Côte d’Ivoire emerges as a West African dynamo, claiming the second spot with a GDP growth of 6.2%. Its economic vibrancy contributes significantly to the prosperity of the region.
3. Benin (GDP Growth: 5.5%): Securing the third sport on our list is Benin, a small but mighty player with a GDP growth of 5.5%. This West African gem is making waves, showcasing that size doesn’t determine strength in the economic arena.
4. Uganda (GDP Growth: 5.4%): Uganda, part of the vibrant East African community, maintains momentum with a GDP growth of 5.4%. With a growing population, Uganda’s economic stride is a testament to East Africa’s potential.
5. Tanzania (GDP Growth: 5.2%): Tanzania, a cornerstone in East Africa, secures the fifth spot with a GDP growth of 5.2%. Its diverse economy contributes significantly to the region’s economic prowess.
6. Kenya (GDP Growth: 5%): Kenya, positioned as a beacon in East Africa, secures the sixth spot with a GDP growth of 5%. A diversified economy and strategic initiatives make Kenya a key driver of growth in the region.
7. Togo (GDP Growth: 4.6%): Togo, nestled in West Africa, displays resilience with a GDP growth of 4.6%. Despite challenges, Togo’s economy stands tall, making it a key player in the West African economic landscape.
8. Senegal (GDP Growth: 4.1%): Senegal, with a steady GDP growth of 4.1%, maintains its position as an economic force in West Africa. Stability and strategic initiatives characterise Senegal’s economic journey.
9. Madagascar (GDP Growth: 4%): The enchanting island of Madagascar claims the ninth spot with a solid GDP growth of 4%. Despite its unique geography, Madagascar proves that economic growth knows no boundaries.
10. Algeria (GDP Growth: 3.8%): Closing our list is Algeria, providing North African stability with a GDP growth of 3.8%. As one of the largest economies on the continent, Algeria’s economic stability influences North Africa’s economic landscape.