Nigeria, once Africa’s largest economy, is anticipated to drop to fourth place this year due to economic challenges like high inflation and currency devaluation.
The IMF forecasts a slight increase in Nigeria’s government debt-to-GDP ratio to 46.6% in 2024, up from 46.3% in 2023.
This was revealed in the IMF’s fiscal monitor report released during its spring meetings with the World Bank in Washington, D.C.
According to the IMF’s World Economic Outlook, here are the top 10 largest Economies in Africa in 2024.
1. South Africa
South Africa leads with a GDP of $373 bn, solidifying its status as Africa’s most industrialized economy. Renowned for its diverse economic profile, South Africa embraces sectors such as mining, agriculture, manufacturing, and services, shaping a multifaceted economic landscape.
2. Egypt
Egypt commands a GDP of $347 bn, leveraging its strategic geographical position as a bridge between Africa and the Middle East.
Historically, Egypt has served as a pivotal hub for trade and commerce.
Its economy thrives on a robust tourism sector, agriculture, manufacturing, and a burgeoning ICT industry, cementing its significance in the regional and global economic arena.
3. Algeria
Algeria has a GDP of $266 bn, primarily fuelled by its abundant natural resources, notably oil and gas, which drive its economy through hydrocarbon exports.
Nevertheless, recent government initiatives prioritize economic diversification, aiming to diminish reliance on oil revenues and promote sustainable growth across diverse sectors.
4. Nigeria
Nigeria often hailed as the “Giant of Africa,” holds the fourth position on the list, and has a GDP of $252 billion. With its expansive population and rich endowment of natural resources, particularly oil, Nigeria harbours the potential to ascend as one of the globe’s foremost economies.
5. Ethiopia
Ethiopia commands a GDP totalling $205 bn. Acknowledged for its impressive economic metamorphosis of late, Ethiopia has drawn substantial foreign investment, notably in sectors like agriculture, manufacturing, and infrastructure.
Given its strides, Ethiopia’s economic advancement bears profound significance for the broader growth trajectory of the continent.
6. Morocco
Morocco with a GDP of $152 bn, is celebrated for its stability and strategic positioning as a crossroads between Africa, Europe, and the Middle East. Its economy flourishes across various sectors such as agriculture, tourism, manufacturing, and renewable energy. Government-led initiatives geared towards promoting entrepreneurship and innovation are propelling Morocco’s economic strength and global competitiveness.
7. Kenya
Kenya, boasting a GDP of $104 bn, holds the position of East Africa’s largest economy. Geared by a dynamic entrepreneurial culture and an expanding middle class, Kenya has established itself as a pivotal economic centre in the region.
Key sectors driving its GDP growth include agriculture, tourism, financial services, and technology, underpinning Kenya’s economic vibrancy and regional influence.
8. Angola
Angola has a GDP totalling $92 bn, endowed with extensive oil reserves that historically engineered its economy through exports.
Yet, in recent times, the government has initiated ambitious economic diversification endeavours, targeting a reduction in oil revenue dependence and the promotion of inclusive growth.
9. Cote D’Ivoire
Cote D’Ivoire has a GDP of $86 bn, marking a notable economic resurgence following years of political turmoil.
This turnaround is propelled by strategic investments in infrastructure, agriculture, and manufacturing.
With a youthful demographic dividend and an increasingly favorable business climate, Cote D’Ivoire stands poised for enduring economic expansion.
10. Tanzania
Tanzania concludes the list with a GDP totalling $79 bn. Endowed with plentiful natural resources and a varied agricultural sector, Tanzania offers extensive prospects for investment and growth.
Government-led initiatives focusing on infrastructure enhancement, industrialization promotion, and business climate improvement serve as pivotal drivers for Tanzania’s economic advancement agenda.
African countries, is blessed with abundant resources, growing populations, and increasing investments, have emerged as notable economic players.
The International Monetary Fund (IMF) report shows the continent’s economic progress and potential.
Despite facing individual challenges, concerted efforts in economic diversification, infrastructure development, and institutional reforms are essential to unlock Africa’s full economic potential and ensure a prosperous future.
The IMF forecasts South Africa, Africa’s most industrialized nation, to lead as the continent’s largest economy with a GDP of $373 billion, a position it’s expected to maintain until 2027.
Egypt, previously at the top in 2023, is projected to fall to second place, largely due to currency devaluations.
