The top 5 countries that fuel Africa’s economic growth

The combined GDP of all African countries which currently stands at $2.8 trillion in 2024 is partly fueled by the strengths of Africa’s super five economies that power the continent.

• Africa’s combined GDP in 2024 ($2.8 trillion) is supported by the strengths of its top five economies
• Business Insider Africa presents the top five countries that power half of the entire African nations’ GDP
• Recommendations for African countries include investing in key growth sectors and implementing policies to reduce the high cost of living.

Africa’s 1.4 billion population with its abundant resources makes it an investment heaven and the toast of several new businesses thus its status as a notable global economic player.

The African Development Bank Group in its latest Macroeconomic Performance and Outlook (MEO) report earlier this year, predicted that Africa will account for eleven of the world’s 20 fastest-growing economies in 2024.

The AfDB added that in 2024, about 41 countries across the continent will experience a 3.8% economic growth rate, while 13 countries will witness an added percentage point higher than the figure recorded in 2023.

However, the distribution of GDP growth has been noticed to be unequal according to a report by the International Monetary Fund (IMF).

This report noted that from the 53 African countries sampled, the combined GDP of the big five countries which are South Africa, Egypt, Algeria, Nigeria, and Ethiopia ($1.4 trillion) made up half of the combined GDPs of the entire African nations

South Africa’s position as number one on the list is a result of the country’s strong financial standing, vibrant manufacturing sector and its robust mining industry.

Egypt comes next in the second position due to its strategic position and control of the Suez Canal which generates significant revenue for the country. In third and fourth position are Nigeria and Algeria which rely solely on their energy sector.

The last on the list, Ethiopia has a strong and vibrant agricultural industry with coffee as its key export driver.

Meanwhile, the rest of Africa, 48 countries in total, also have a combined GDP of $1.4 trillion.

Amid the uncertainties in the global economy, Africa has been projected to experience some growth in its GDP as the continent’s policymakers continue to forge the necessary alignments to drive economic diversification strategies.

To maintain this economic drive and sustain the improvements in GDP, African countries have been urged to focus more on investing in key growth sectors, as well as the implementation of domestic policies aimed at reversing policy effects that increase the cost of living.