African countries are predicted to dominate the world’s top 10 highest-growing economies in 2024, the Economic Commission for Africa (ECA) has said in a report on Recent Economic and Social Developments in Africa.
Niger, Senegal, Ivory Coast, DRC and Rwanda are anticipated to emerge as the most notable growth drivers in 2024.
Overall, the report forecasts Africa’s economic growth to rise from 2.8% in 2023 to 3.5% in 2024, reaching 4.1% in 2025, as Africa was the fastest-growing region after East and South Asia in the developing world in 2023. This growth will be underpinned by net exports, private consumption, and gross fixed investment.
In Niger and Senegal’s case, for instance, they are expected to experience significant economic growth due to the increase in hydrocarbon production and exports.
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While Niger’s growth is expected to stem from agricultural production and crude oil production, Senegal’s growth will be fuelled by private and infrastructure projects. However, the report warns that political events such as elections could impact short-term growth and development in these two countries. Senegal last week had its elections, with the choosing of a new leader who’s promising an economic turnaround and restoring investor confidence.
“Ivory Coast, the DRC, and Rwanda – 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 Adam Elhiraika, Director of Macroeconomics and Governance Division at the ECA.
The DRC’s growth will be driven by the extractive sector, including newly opened oilfields, while Rwanda and Ivory Coast will see growth fuelled by private consumption, investment, and pro-competitive market reforms.
However, the report also underscores the challenges facing Africa’s economic development, including instability, low trade volumes, rising poverty, inequality, and unemployment.
“The region faces threats of tighter monetary and fiscal conditions and notable debt sustainability risks,” said Mr. Elhiraika adding that the ongoing climate catastrophes and extreme weather occurrences will continue to negatively impact agriculture and tourism, while geopolitical instability will continue to affect certain subregions in Africa.
To address these challenges, and make progress towards the SDGs and Agenda 2063 targets, the report offers key recommendations; including reducing trade costs, promoting the AfCFTA, implementing sustainable debt relief and restructuring measures, mobilising domestic resources to achieve SDGs and capitalising on global shifts, such as the transition to renewable energy and significance of critical minerals.
