Which country has the largest economies in Africa? The African economy is projected to reach $29 trillion in 2050, playing a significant role in the world economy.
The 2021 Coronavirus epidemic rocked the world economy, halting financial obligations in several nations, notably Africa.
Despite a monetary crisis in many African nations, most notably Nigeria, the world’s top per capita economies remained stable in 2021. Here we examine the continent’s top ten richest nations by 2021 and their economic health.
Top 10 Largest Economies in Africa
1. NIGERIA ($446.543 Billion GDP)
Nigeria has the largest economy in Africa. The country’s roughly 200 million citizens are important to its economy. Nigeria has the highest GDP in Africa, at about $450 billion.
Large GDPs are due to the country’s wealth in finance, transportation, infrastructure, tourism, and oil. Nigeria is Africa’s largest crude oil exporter, at 1.6 million barrels per day.
OPEC Fuel transactions account for 10% of total GDP and over 80% of commodity revenue.
Nigeria’s wealth includes unprocessed components and shared assets. These industries use coal and limestone, among other resources. They may be produced from gas.
Cocoa and rubber are grown on fertile land that provides almost 20% of the country’s GDP. Nigeria’s size and security-conscious citizens have aided the country’s growing digital economy.
Between 2000 and 2014, Nigeria’s GDP grew by 7% yearly, according to the World Bank. Due to political and financial uncertainty, recent oil and creation shocks lowered this to 2%.
In an effort to decrease its reliance on petroleum refineries, the country has emphasized asset preservation.
Nigeria, Africa’s most populous nation, has a fascinating historical history, ethnic diversity, and natural beauty.
2. SOUTH AFRICA (GDP: $358.839 Billion)
South Africa is also one of the largest African economies. The continent’s southernmost country is also its most populated. Its highly developed economy, sophisticated infrastructure, and GDP of over $350 billion make it one of the world’s fastest growing non-industrial nations.
It is one of the few nations on our list that does not rely only on one source of income. The country’s economy is based on mining, manufacturing, financial services, and tourism.
Aside from that, it’s a goldmine of raw materials like coal and iron. It exports precious metals including gold and platinum. Tourism is a significant component of the country’s economy since it is a popular holiday destination.
But politics and global instability have kept it from achieving its full potential. After two quarters of negative GDP growth, the nation was pushed into a recession, with 2019 seeing just 0.2 percent growth. Imbalanced growth in South Africa is a global phenomenon.
3. EGYPT (GDP: $302.256 Billion)
Egypt is one of the top economies in Africa. This ancient Northern African empire was perhaps Africa’s most wealthy. While this is true, the 2011 Arab Spring destabilized previously steady global economic ties. Egypt is the world’s third biggest economy, at about $300 billion.
Over the last decade, financial workouts have improved and balanced, leading to excellent financial development. GDP growth rose to 5.6% in 2019 from 5.3% in 2018.
As a consequence, the country’s unemployment rate has fallen, and foreign trade savings, labor and product production have risen, as has the tourist industry. That’s why the country’s situation has changed.
The Egyptian economy is based on oil and gas exports, travel, retail commerce, development, and land. Due to recent diversification, state-owned companies now account for more GDP than raw material trading.
Despite this, Egypt may face financial challenges owing to high poverty rates, unemployment, a fragile healthcare system, and a worldwide backlog.
4. ALGERIA (GDP: $172.781 Billion)
Algeria, the continent’s biggest nation, is ranked fourth richest. Thanks to its big economy and accessible base, the area has managed to reduce poverty by 20% in the past two decades.
The economy of this emerging Saharan country is largely dependent on unrefined petroleum savings. So much so that oil and gas provide over 70% of the country’s revenue.
The recent finding of additional unrefined petroleum has helped this modern nation’s fast growth. Agriculture, modern manufacturing, business administrations, and development make up Algeria’s economy. As well as being the biggest supplier of Ammonia in Africa.
Whatever the case, it’s worth noting that lower oil prices have reduced the country’s cash reserves. Algeria’s economic development has slowed due to political unrest and oil sector scandals.
5. MOROCCO (GDP: $119,04 Billion)
Morocco is one of the countries with the largest economies in Africa. Located in North Africa, Morocco has a GDP of about $120 billion.
The economy of this North African nation has grown steadily during the last decade. It’s the second most costly non-oil producing African country.
Mining and manufacturing are important economic drivers. Morocco’s GDP is 30% industry, 15% horticulture, and 55% government.
The tourism industry is also expanding, with people embracing tourists and the government promoting the nation’s natural beauty.
Horticulture is largely reliant on Morocco, which is the world’s third biggest producer. Expansion of trade outside electrical hardware and cars and vehicle components has benefited the nation.
Businesses in the telecoms and materials industries also help the economy.
6. KENYA (GDP: $99,246 Billion)
Kenya, an East African country with a GDP of over $100 billion, comes in second africa list of most lavish nation.
This country’s prosperity comes from steady everyday settings, established espresso and tea regions, and quickly growing agricultural areas.
Its coastline has several significant ports for Asian and Arabian merchants even before it became a district exchange center.
Unlike many of the other nations on this list, Kenya’s economy is based on a number of positive achievements.
Kenya’s economy grew 5.7% in 2019, making it one of Sub-Saharan Africa’s fastest-growing. The financial supporters are confidence, the political and administrative atmosphere is stable, the macroeconomic climate is favorable, and the business plan is acceptable.
The urban sector contributes almost half of the GDP. Agriculture provides 35% of the GDP, mainly via espresso, tea, and maize production.
Tourism, financial services, and innovation projects have saw fast development, while fuel accounts for a large part of its untapped commerce.
7. ANGOLA (GDP: $91,527 Billion)
Angola has some of Africa’s biggest mineral deposits. Basically, it might be much higher on our list of wealthy African countries.
Despite this, asset mismanagement and internal devaluation have hurt the country’s economy. It is ranked 7th with a GDP of about $90 billion.
Angola’s resource-rich economy derives almost 33% of its GDP from oil and gas reserves. Petrochemical manufacturing and usage has a major effect on previously unexplored markets.
90% of the country’s income comes from crude oil sales. Jewels and freight ships are also important. Agriculture is expected to have a significant role in the economy in the future.
The Angolan conflict concluded in 2002. After then, numerous steps were taken to achieve financial growth and stability. People have been working on political and fundamental changes near the IMF and the World Bank.
The nation then became one of the wealthiest in Africa after meeting one of the world’s fastest growing economies.
8. ETHIOPIA (GDP: $91,166 Billion)
This ancient region in Ethiopia, a landlocked country in the Horn of Africa, A major part of the country’s economic trade comes from the production of espresso and nectar. Vegetables, seeds, and flowers are offered.
Aggregate gross domestic product (GDP) is $91,166 billion. Horticulture accounts for about 40% of GDP, 60% of goods, and 80% of revenue in the area.
Ethiopia’s financial growth has been stuck at 9.9% since 2008. This unusual annual progress has begun attracting new businesses.
The administration announced a financial reform in 2018 to open the economy and spur development. As of 2015, the country’s poverty rate was 31%, and it will be middle-income by 2025.
Concerns include high buyer demand, social unrest, and a weak private sector.
9. GHANA (GDP: $67,077 Billion)
Ghana has the ninth largest economy in Africa. Ghana, a West African country, has a diverse and rich economy.
With a GDP of $67,077 Billion, it ranks ninth on the list of wealthiest African countries. The country was the first in Sub-Saharan Africa to be freed from frontier norm and split extreme neediness.
The country’s overall business environment has attracted new initiative, with recent financial growth of above 6%.
Administrations provide almost half of Ghana’s GDP and employ nearly 30% of the workforce. After agriculture, industry contributes about 25% of GDP.
Ghana has a lot of regular assets that help with financial growth. The country’s main export is gold.
Then comes fuel, which makes up half of the country’s foreign commerce. Other notable goods include cacao, timber, and gold.
10. TANZANIA (GDP: $62,224 Billion)
Tanzania, with a 2016 GDP of $62,224 billion, is the most luxurious African country. It features a mixed-wage economy and some of the world’s most famous public parks, including Kilimanjaro.
Agriculture accounts for almost 25% of the country’s GDP and employs half of the workforce.
A rising economy accounts for almost 30% of GDP and includes mining, manufacturing, development, power, gas, and water supply. One can find gold, cappuccino, cashew nuts, and cotton.
Tanzania’s recent high pace of monetary development (5.6%) seems to be decreasing. Massive framework investment shows a strong medium-term prognosis.
Despite the fact that economic development and poverty rates have slowed in recent years, the number of poor people has remained stable.