5 African Nations Projected to Dominate World’s Highest Growing Economies in 2024

ADDIS ABABA – African countries are predicted to dominate the world’s top 10 highest growing economies in 2024, according to a Economic Commission for Africa (ECA) report.

The ECA published the report on Recent Economic and Social Developments in Africa late last week.

Its Macroeconomics and Governance Division Director Adam Elhiraika said Africa was the fastest growing region after East and South Asia in the developing world in 2023.

The continent will continue this trend in 2024 and 2025, the director added.

‘Notable Drivers of the Growth’

The report has projected Niger, Senegal, Ivory Coast, DR Congo and Rwanda to be “the most notable growth drivers in Africa.”



Niger and Senegal are expected to experience significant economic growth due to the increase in hydrocarbon production and exports.

In Niger, growth will be fuelled by the revival of agricultural production – although it is vulnerable to unfavorable weather conditions – and a rise in crude oil production, which will have a beneficial impact on the transportation sector.

However, recent military coups, together with sanctions from regional blocs, have disrupted economic activity and incurred significant social costs.

The growth in Senegal will be driven by rising private and infrastructure projects, the report says, which cautions the impact of the recently concluded presidential election could have on its short-term growth and development.

Ivory Coast, DRC & Rwanda to see robust growth

“The robust expansion in these nations is attributed to an increase in infrastructure investment, continuous development in tourism, good performance of the mining industry, and advantages of economic diversification,” said Elhiraika.

The growth in DR Congo will be spurred by the extractive sector due to the opening of new oilfields, as well as by agriculture, services, and mining, as per its national strategy to boost social and investment expenditures.

Rwanda’s growth will be fuelled by private consumption and investment, while Ivory Coast’s growth is driven by increased investment stemming from pro-competitive market reforms and business environment improvements, alongside private consumption influenced by decreasing inflation.

POLICY SHIFTS

The report shows that the continent is expected to grow from 2.8% in 2023 to 3.5% in 2024 and reach 4.1% in 2025, mainly underpinned by net exports, private consumption and gross fixed investment.

Africa’s economic growth remains unstable and lower than potential, and the rate required for achieving the Sustainable Development Goals (SDGs) and Agenda 2063 target.

This requires major fiscal and monetary policy shifts as well as increased efforts to address internal and external balances, inflation and debt issues, per ECA Report.

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