With the arrival of 2024, various financial institutions have disclosed their projections for the African continent in the new fiscal year. In line with the predictions of experts, there is a growth expectation of 4.2% in the general perspective for the African continent (IMF). Private consumption and investment are predicted to drive an acceleration in gross domestic product (GDP) for roughly 80 per cent of countries by 2024. While the growth rate in the continental economy was 3.9 per cent throughout 2022, this number decreased to 3.6 per cent in 2023. Among the main factors of this performance decline are the interest rates increased by the central bank against global inflation and the profound impact of the war in Ukraine on global commercial activity and the resulting intercontinental trade vulnerabilities.
Clear economic growths are expected to begin initially with countries that have more active resources in terms of natural resources and production. 21 countries, which we can call moderate in terms of natural resources and industrialisation, mainly Ivory Coast, Kenya, Uganda, Mozambique, etc., are expected to have an economic growth of 6.2% throughout 2024, evidently exceeding the average growth figure. Senegal is one of the countries we've included which is expected to see a considerable increase in growth compared to other African nations. This is thanks to the significant effects of the upcoming natural gas project slated for 2024. Surrounded by Venezuela, Brazil, and Suriname on its opposite shore, Senegal's economic growth is forecasted to reach 10.6 per cent in 2024, located at the farthest point of West Africa.
Apart from the optimistic representations, there are also expectations of a downturn in growth figures for 2024 in certain nations. The 2024 fiscal year does not bode well for key oil exporting countries like Angola, Nigeria, South Sudan, and Equatorial Guinea, as they are set to be affected by the anticipated decrease in oil prices and the depreciation of their currencies.
Experts claim that the future growth of the region depends on the fulfillment of three global factors. In light of the global economic recovery following the Ukraine war, the region is projected to experience improved export opportunities and lowered import expenditures thanks to smoother supply chain operations (Without a doubt, assuming that the current situation in the Suez Canal resolves quickly - otherwise, we will have to consider a vastly different outcome in the not-so-distant future).
Furthermore, there is a forecasted decrease in global inflation for 2024. Therefore, it is expected that major central banks will ease their monetary policy tightening in the first half of that year, resulting in less pressure on exchange rates in sub-Saharan Africa. Anticipated for 2024, a 6 per cent decline in crude oil prices is on the horizon as demand softens. This decrease is set to have a positive effect on growth, given that net fuel importing countries contribute to two-thirds of the region's GDP.
In order to bring a better understanding the related economic topic, I plan on focusing on the GDP per capita of some leading African nations below ;
Botswana : Botswana, whose economy is largely based on tourism, natural resources and agriculture, has a very high level of personal income. Estimated GDP per capita in 2024 is $7, 539.
South Africa : The South African economy is characterized by its variety, encompassing sectors like mining, agriculture, and services. Estimated GDP per capita in 2024 is $6, 121.
Egypt : The economy of Egypt is multifaceted, with prominent sectors including tourism, oil and gas, and agriculture. Estimated GDP per capita in 2024 is $4, 693.
Morocco : The economy of Morocco is characterized by a variety of sectors, including tourism, agriculture, industry, and services. Estimated GDP per capita in 2024 is $3, 526.
Angola : Angola's economy heavily relies on its oil and natural resources. Estimated GDP per capita in 2024 is $2, 452.
Ghana : Sectors such as agriculture, petroleum, and services provide a strong foundation for Ghana's economy. Estimated GDP per capita in 2024 is $2, 241.
Kenya : As a regional economic powerhouse, Kenya's economy is multifaceted, encompassing the service industry, agriculture, and tourism. Estimated GDP per capita in 2024 is $1, 953.
Ethiopia : The growth of Ethiopia's economy is being driven by advancements in agriculture, manufacturing, and infrastructure. Estimated GDP per capita in 2024 is $1, 787.
Senegal : Senegal's economy is largely comprised of natural resources, agriculture and production sector. Estimated GDP per capita in 2024 is $1,773.
Nigeria : The African country of Nigeria holds the title for most populous, and its economy reflects this diversity through its significant involvement in the oil and gas sectors. Estimated GDP per capita in 2024 is $1, 734.
Tanzania : Tanzania's economic prosperity is driven by the contributions of agriculture, tourism, and natural resources. Estimated GDP per capita in 2024 is $1, 241.
Rwanda : Rwanda's economy is based mainly on agriculture and tourism. However, recently the necessary steps have been taken for a serious industrial development move. Estimated GDP per capita in 2024 is $1, 064.
My constant refrain has been that Africa is the next big thing in the world of business. The continent is attracting investments that will have a direct impact on its gross national income. This is sure to bring about greater prosperity and livability in countries. Through increased investment and responsible utilization of natural resources, the African continent has experienced a noticeable boost in its Gross Domestic Product figures. With such a substantial 75 per cent increase in just seven years, it is not hard to imagine where the income levels of the African continent will stand in 2050.
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GDP OF AFRICA FROM 2020 TO 2027
2020
2.449,6 Billion $
2021
2.738,6 Billion $
2023
2.980,1 Billion $
2024
3.144,8 Billion $
2025
3.665,6 Billion $
2026
3.965,7 Billion $
2027
4.288,1 Billion $
