In this article, we look at the 15 fastest growing African economies in 2024. We will also discuss Africa's economic outlook. If you want to skip our detailed analysis, you can go directly to the 5 Fastest Growing African Economies in 2024.
Economic Outlook of Africa
The global economic recovery has continued to slow down after hitting a projected high of 6% after the pandemic in 2021. According to the IMF, global growth was estimated at 3.5% in 2022 and 3.1% in 2023. The growth projections for 2024 also show signs of flattering economic recovery, with economic growth projections staying stagnant at 3.1%.
The African region is not immune to stunted economic growth and faces a multi-crisis situation. Some of the foremost obstacles hindering Africa's economic growth include increased cost of living, increased effects of climate change, geopolitical tensions, and the aftereffects of the health pandemic. Africa's economic growth trajectory has flattened over the past few years. According to the January 2024 report by the African Development Bank, the real GDP growth of Africa declined from 4.1% in 2022 to an estimated 3.2% in 2023. The decline results from the aforementioned external factors coupled with the internal challenges of disrupted domestic and external demand, deep pockets of political instability in the region, weak export portfolio, and the central bank's tightening of fiscal and monetary policies.
Moreover, inflation in Africa has been on the rise since the beginning of the pandemic, and it still remains high, thereby posing a challenge to macroeconomic stability. The average inflation rate for the region went up by 3.7% in 2023, reaching a high of 17.8%. The inflation rate recorded in 2023 was the highest in over a decade, leading to the corrosion of macroeconomic gains made before the pandemic. On March 20, Reuters reported an increase in South Africa's consumer inflation for the second month in a row in February. South Africa's headline consumer inflation was 5.3% in January and has increased 5.6% year on year since then. Some key factors contributing to high inflation rates include external factors such as rising global food and energy prices and internal issues, including agricultural supply shocks, fiscal largesse, and increased devaluation of local currency against the US dollar. To read more about the African economy, you can look at the 35 Poorest Countries in Africa Based on 2023 GDP Per Capita and the 20 Largest Economies in Africa Ranked by PPP.
However, on the bright side, the region's growth is still considered resilient. Looking at 2023 in a glimpse, the region continued to maintain its position as the second fastest growing region globally, and 15 countries exceeded growth expectations by posting an economic growth of 5%. Moving forward, the growth rates are expected to pick up in 2024, rising to 3.8% and finally reaching 4.2% in 2025. Some factors dictating the resilience of the African economy include strong infrastructure investment spending, prospects of increased tourism after the cooldown of the pandemic, and the advantage of a diversified regional economy. You can also read about the 23 Richest Countries in Africa by GDP Per Capita in 2023.
Leading African Companies
MTN Group Limited (JSE:MTN), Sanlam Limited (JSE:SLM), and Sasol Limited (NYSE:SSL) are some of the leading companies driving growth in Africa.
MTN Group Limited (JSE:MTN) is an international integrated telecommunication company based in South Africa. The company provides many services, including communication, fintech, cloud services, data hosting, device management, and more. MTN Group Limited (JSE:MTN) has an operational presence in Africa, North America, and the Middle East. On February 28, MTN Group Limited (JSE:MTN) signed a Memorandum of Understanding with Huawei for a joint venture innovation technology lab to boost Africa's digital infrastructure. Under this collaboration, both of the companies will work together to build an innovation technology lab at MTN Group Limited's (JSE:MTN) headquarters in South Africa. The lab is expected to serve as a collaborative platform to work on accelerating the digital ecosystem and adoption of innovation throughout the African continent. Some key focus areas upon which both companies will be working include artificial intelligence, 5G and beyond, big data analytics, and digital financial services.
Sanlam Limited (JSE:SLM) is one of Africa's largest non-banking financial services groups. The company operates through its various subsidiaries, providing life insurance, general insurance, and investment management services. Moreover, Sanlam Limited (JSE:SLM) has a niche presence in Asia. On February 2, Sanlam Limited (JSE:SLM) announced a proposed transaction to acquire 100% issued ordinary shares of Assupol Holdings Limited. The company has offered a fallback general offer to Assupol Holdings Limited shareholders for a purchase consideration of approximately R6.5 billion. As a result of this proposed transaction, Assupol Holdings Limited will become part of the Sanlam Limited (JSE:SLM) group along with Sanlam Sky, Safrican, and the Capitec JV.
Sasol Limited (NYSE:SSL) is Africa's leading integrated energy and chemical company. The company develops and commercializes liquid fuels, chemicals, low-carbon electricity, lubricants, and other products. Sasol Limited (NYSE:SSL) has an operational presence in Africa, the Middle East, Asia, America, and Europe. On February 28, Sasol Limited (NYSE:SSL) announced its partnership with Transnet Freight Rail to improve rail transport reliability in South Africa. Transnet Freight Rail is the operational division of Transnet SOC Limited, which owns the port, railways, and pipeline infrastructure of South Africa. Under the 5 year plan, Transnet Freight Rail will deliver ammonia from Sasol Limited (NYSE:SSL) Secunda and Sasolburg facilities using 128 dedicated trailers. In return, Sasol Limited (NYSE:SSL) will be responsible for funding the maintenance and repair program of the Transnet Freight Rail fleet.
With this context, let's look at the 15 fastest growing African economies in 2024.
15 Fastest Growing African Economies in 2024
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Our Methodology
To curate the list of 15 fastest growing African economies in 2024, we relied on the real GDP growth rate and the real per capita GDP growth rate. We have used the real GDP growth rate because it is a universal indicator to measure the health of an economy. Moreover, we have also incorporated real per capita GDP growth rates that indicate the increase in output per person. Both indicators are sourced from the IMF database, and we have ranked the countries based on the latest values for 2024. The list is ranked in ascending order of the real GDP growth rate, primarily, and the real per capita GDP growth rate secondarily. In cases where a tie-break was required, the secondary metric was used to break the tie.
15 Fastest Growing African Economies in 2024
15. Togo
Real GDP Growth Rate 2024: 5.3%
Real Per Capita GDP Growth Rate 2024: 2.8%
Togo ranks as the 15th fastest growing African economy in 2024. It is a West African country with a real GDP growth rate of 5.3% and a real GDP per capita growth rate of 2.8%.
14. Guinea
Real GDP Growth Rate 2024: 5.6%
Real Per Capita GDP Growth Rate 2024: 3%
Guinea is another West African country bordering the Atlantic Ocean. Guinea is an emerging economy that ranks 14th on our list of fastest growing African economies in 2024. It has a real GDP growth rate of 5.6% and a real GDP per capita growth rate of 3%.
13. Uganda
Real GDP Growth Rate 2024: 5.7%
Real Per Capita GDP Growth Rate 2024: 2.7%
Ranking 13th on our list of fastest growing African economies in 2024 is Uganda. It is an East African country with a real GDP growth rate of 5.7% and a real GDP per capita growth rate of 2.7%.
12. Djibouti
Real GDP Growth Rate 2024: 6%
Real Per Capita GDP Growth Rate 2024: N/A
Djibouti is the 12th fastest growing African economy in 2024. It is an East African country with a real GDP growth rate of 6% in 2024.
11. Burundi
Real GDP Growth Rate 2024: 6%
Real Per Capita GDP Growth Rate 2024: 2.9%
Burundi is situated in the Eastern part of Africa and ranks as the 11th fastest growing African economy in 2024. Burundi's real GDP and real GDP per capita are expected to grow 6% and 2.9% in 2024, respectively.
10. Tanzania
Real GDP Growth Rate 2024: 6.1%
Real Per Capita GDP Growth Rate 2024: 3%
Tanzania, an East African country, makes it to the top 10 fastest growing African economies in 2024. It has a real GDP growth rate of 6.1% and a real GDP per capita growth rate of 3%.
9. The Gambia
Real GDP Growth Rate 2024: 6.2%
Real Per Capita GDP Growth Rate 2024: 3.1%
Gambia ranks 9th on our list of fastest growing African economies in 2024. It is a West African country with a real GDP growth rate of 6.2% and a real GDP per capita growth rate of 3.1%.
8. Ethiopia
Real GDP Growth Rate 2024: 6.2%
Real Per Capita GDP Growth Rate 2024: 4.5%
Ethiopia is an East African country with a real GDP growth rate of 6.2% and a real GDP per capita growth rate of 4.5%. It ranks as the 8th fastest-growing African economy.
7. Benin
Real GDP Growth Rate 2024: 6.3%
Real Per Capita GDP Growth Rate 2024: 3.4%
Benin ranks 7th on our list. It is a West African country demonstrating strong economic growth. It has a real GDP growth rate of 6.3% and a real GDP per capita growth rate of 3.4%.
6. Burkina Faso
Real GDP Growth Rate 2024: 6.4%
Real Per Capita GDP Growth Rate 2024: 3.5%
Burkina Faso ranks as the 6th fastest-growing African economy. It is a West African country with resilient economic growth. Its real GDP is expected to grow at 6.4% in 2024; in addition, it has a real GDP per capita growth rate of 3.5%.
