15 largest economies in Africa in 2020 - TUKO
by Peris Wacera
The economy of a country is its backbone. Africa has a pool of some of the fastest-growing economies in the world. Spanning 54 countries, Africa is a high-flyer when it comes to natural resources. Despite its social and political issues, the 15 largest economies in Africa have proven to be a force to reckon with in the coming years.
For the strongest economy in Africa, resources like trade, agriculture and human resource should be looked into. Sales in commodities and manufacturing play an essential role in the GDP of the country. The following is a compilation of the top 15 largest economies in Africa by GDP.
List of the Largest economies in Africa by GDP (Nominal)
African countries economic ranking based on the GDP (nominal) is sorted according to data and information from the International Monetary Fund. The difference in the cost of living is not put into consideration in the following order. The rankings can change yearly due to the fluctuations in the currency of the country and the exchange rate. It is essential to note that the GDP is calculated as per the population times the market value of the goods and services produced in a country, per person.
1. Nigeria – nominal GDP per capita US$ 2,233.45
Nigeria tops the list of the largest economies in Africa by GDP per capita. It’s economy significantly expanded in the last four years with bold steps of its central bank, boosting credit growth. The increase in oil output has also played an essential role in elevating Nigeria’s economy.
The country had a strong end in the year 2019, but the top economic watchers believe that it needs to strengthen its economy more for it to take care of the large chunk of its population struggling with poverty. Nigeria is well-heeled in natural resources with oil, rubber and cocoa as some of its top exports. The country has the best economy in Africa and is a powerhouse of economic development compared to other African countries.
2. South Africa - nominal GDP per capita US$ 6,331.46
As much as the economy of South Africa grew by 1.3%, it is currently placed in second place when it comes to the top economies in Africa. South Africa is well-known for its growth in agriculture, mining and manufacturing. Its major exports include gold, diamonds and fruit. Predictions show the country may remain as one of the largest economies in Africa, 2030.
3. Egypt - nominal GDP per capita US$ 3,019.72
Egypt is one of the African countries that pride itself with a vibrant trade history. Despite its ups and downs in the past few years, it still manages to clinch the third spot on the list. The year 2013 saw a fall in their foreign exchange reserves that affected the country’s economy negatively.
The Egyptian government had to come up with economic reforms to salvage the situation. Egyptians main exports include insulated wire, petroleum and gold. The land of the Pharaohs and pyramids is famous for its textile production, tourism and food processing.
4. Algeria - nominal GDP per capita US$ 4,229.78
The slight decline in hydrocarbon production in 2017 slowed down the country’s economic growth. It did not deter the country from moving forward. Instead, the Algerian government concentrated on its biggest exports which are petroleum and natural gases. The country also pressed forward exporting principal farm crops like wheat, citrus fruits, olives and dates.
5. Morocco - nominal GDP per capita US$ 3,409.95
Over half of the country’s GDP is accounted for by the services sector, which includes mining, construction and manufacturing. Morocco is known for exporting electric components, transistors, citrus fruits and vegetables. The significant economic concerns include structural unemployment and its massive external debt. The country also struggles with youth unemployment which is something that may affect its future economy.
6. Kenya - nominal GDP per capita US$ 2,010.51
Kenya is one of the countries whose economy has drastically been affected by post-election violence. Despite this, the country has been reviving its economy hammer and tongs. Kenya has put considerable effort in trade which plays a crucial role in its economy. It has taken advantage of its agricultural sector, which is one of the pillars that enable it to maintain a top 6 position as one of the biggest economies in Africa.
7. Angola - nominal GDP per capita US$ 3,060.02
For a country that has dealt with 27 years of civil war, Angola beats the odds to appear at the top 10 African countries with the biggest economy. Angola is also one of the fastest-growing countries in the world. The Angolan government has been able to cut down expenditure and concentrate on exporting crude oil, petroleum products, diamonds and agricultural produce. Fishing is also one of the main activities in the country that contribute positively to their economy.
8. Ethiopia - nominal GDP per capita US$ 951.10
Ethiopia is famous for its unique delicacies and delicious menus. Besides, it happens to be one of the largest economies in Africa 2018/2019. As much as the country has the second largest population in the continent, it remains one of the fastest-growing economies in the world today. Its accelerated economic growth is because of industrial activities that include investing in infrastructure like the Grand Renaissance Dam. Its principal exports such as leather, spices, textiles and natural gum have also contributed to the stability of the country’s economy.
9. Ghana - nominal GDP per capita US$ 2,262.57
Many African countries struggle with their politics which end up affecting their economy negatively. Ghana is one of the countries that have taken significant strides towards democracy under the multi-party umbrella. The country has strongly recovered in the service industry with a non-oil growth of 6.0%. As much as the country has its challenges in the meeting revenue targets, its government continues with its fiscal consolidation to strengthen its economy.
10. Tanzania - nominal GDP per capita US$ 1,172.18
Tanzania is one of the African countries that takes a lot of pride in its culture and traditions. It is also known for its sumptuous and exquisite menus. More than half of the country’s workforce is employed in the agricultural sector. Tanzanian’s reliance on agriculture makes it vulnerable to environmental shocks that can adversely affect its economy.
11. Democratic Republic of the Congo (DRC)- nominal GDP per capita US$ 495.08
The DRC is the largest country in Sub-Saharan Africa and has a surface area equivalent to that of Western Europe. The country is still recovering from a series of conflicts that occurred in the 1990s. Despite its slow growth of 4.4% in 2019, owing to commodity prices, DRC still maintains to be top 15 of the top African economies.
12. Cote d’Ivoire - nominal GDP per capita US$ 1,722.26
Cote d’Ivoire is one of the African countries that have made a major come-back after its post-election war. It is deemed as one of the fastest-growing countries in the world. Maintaining this rapid growth is one of the challenges that the country faces since it has to deal with poverty rates at 46.3%.
13. Libya - nominal GDP per capita US$ 6,835.62
Libya is one of the countries that had its political conflicts take a severe toll on its economy. These conflicts have negatively impacted the World bank’s commitment to supporting the country's analytical services as well as grant financing.
14. Cameroon - nominal GDP per capita US$ 1,537.61
Cameroon has a lower-middle-income population of over 25 million along the Atlantic Ocean. The Nachtigal Hydropower Dam is one of the bold partnerships between the government and the private sector. It plays a vital role in boosting the urban and rural cities in Cameroon.
15. Tunisia - nominal GDP per capita US$ 3,072.51
As many African countries struggle with their political conflicts, Tunisia has made steady progress in its political transition since 2014. The Tunisian government has put more emphasis on its key ingredients to improve management and natural resources.
The top 15 largest economies in Africa are giving some of the top players in the world, a run for their money. With the majority of African economies working on their weaknesses and improving their strengths, the top largest economies in Africa, 2050, will have very high positions in the world rankings.