In this article, we will discuss the 20 largest economies in Africa ranked by PPP. If you want to skip the detailed analysis of the African economy, click 5 Largest Economies in Africa Ranked by PPP.
Economic Outlook for Africa
African economy holds a huge potential considering its rich natural resources and young human capital. However, the ongoing global economic crisis and rising tensions in the Middle East between Israel and Palestine are creating more economic uncertainty. On November 20, Bloomberg reported that African economies are set to keep their interest rates higher for longer. Countries such as Nigeria and Angola are expected to raise rates due to their acute currency weakness and alarming inflation. Egypt may increase its rates in the next meeting or early 2024. Other countries are maintaining their rates at current levels to evaluate risks to inflation including South Africa, Kenya, Morocco, and Ghana. Bloomberg’s economist in Africa, Yvonne Mhango stated:
“Inflation has yet to be tamed in Africa, in large part due to depreciating currencies. We expect a big rate hike from the new central bank leadership in Nigeria, where inflation has been accelerating for 10 months. Angola and Zambia are also likely to hike rates. We anticipate a hawkish hold from South Africa and Kenya where there is a moderate uptick in inflation.”
Inflation is the main concern for the global economies, at the moment. However, there are some positive developments across developing African economies. According to IMF’s Regional Economic Outlook for Sub-Saharan Africa for October 2023, the regional economic growth has declined from 4% in 2022 to 3.3% in 2023. Despite lower growth, there are signs of output beginning to recover. For instance, the median growth rate in Sub-Saharan Africa was stable at 4.1% in 2023. The overall growth dropped because three to four large economies saw a decline in their growth during 2023. For the vast majority of countries in Africa, the growth rate is stable. The IMF expects the regional growth to bounce back to 4% in 2024 and that too, to be broad-based.
African Companies and Recent Developments
If Africa needs to push its economy in the coming years, some of the biggest companies in the region will have to continue performing well. Africa is rich in mineral and other natural resources, which is estimated to be worth trillions of dollars. This is why mining companies hold a vital position in the regional economy. One of the largest mining companies in the world, Gold Fields Limited (NYSE:GFI) is based in Johannesburg, South Africa.
On October 9, Gold Fields Limited (NYSE:GFI) announced the appointment of Mike Fraser as CEO and Executive Director of the Company. Fraser has previously served at BHP Group Limited (NYSE:BHP), one of the most valuable mining companies in the world. Fraser evolved his career at BHP Group Limited (NYSE:BHP) from an employee in BHP's human resources department to becoming the President and Chief Operating Officer of BHP Group Limited’s (NYSE:BHP) global aluminum, nickel and South African manganese and energy coal businesses. Fraser is set to join Gold Fields Limited (NYSE:GFI) from January 1, 2024. Gold Fields Limited (NYSE:GFI) is focusing on a modern and global business model with embedded ESG. On October 4, the company announced that it agreed on a new five-year sustainability-linked loan worth A$500 million backed by a syndicate of ten Australian and international banks. With the loan, Gold Fields Limited (NYSE:GFI) will continue to achieve its ESG objectives.
Nigeria is one of the largest economies in Africa. Zenith Bank PLC (NGX:ZENITHBANK), a diversified financial services institution, is one of the most valuable Nigerian companies in the world. On October 31, Zenith Bank PLC (NGX:ZENITHBANK) announced its unaudited results for the third quarter of 2023. The company posted a revenue of NGN$1.33 trillion in Q3 2023, a whopping 114% increase year over year. Despite a challenging macroeconomic environment, Zenith Bank PLC (NGX:ZENITHBANK) continues to perform well. The profit after tax increased from NGN174.3 billion in Q3 2022 to NGN434.2 billion in Q3 2023. Zenith Bank PLC (NGX:ZENITHBANK) is optimistic about boosting all business segments and ending 2023 on a high.
Telecom Egypt (EGX:EGS48031C016) is one of the largest telecom companies in Africa. On October 4, Telecom Egypt (EGX:EGS48031C016) announced that it signed a memorandum of understanding (MOU) with Budapest-based info-communications firm, 4iG Plc. The contract is signed between both companies to link Egypt and Albania through a high-capacity subsea cable. The high-capacity subsea cable connection between Egypt and Albania is set to be a new European cable entry point, which will connect the main internet points of presence (PoP) in Europe. The CEO of Telecom Egypt (EGX:EGS48031C016), Mohamed Nasr, stated:
“We are pleased to cooperate with 4iG to set the ground for adding a brand new diverse entry point to Europe in Albania, facilitating the routing of the African and Asian traffic to the main Points of Presence in Central and Eastern Europe. This goes in line with Telecom Egypt’s strategy to diversify the Mediterranean basin crossing options for our partners via multiple, high-capacity subsea cables linking Egypt and Europe.”
Among Insider Monkey’s list of 50 largest economies in the world ranked by PPP, four of them are from Africa. According to Goldman Sachs, the fifth largest economy in 2075 will be Nigeria, which is a reflection of Africa’s economic potential. Now let’s have a look at the largest economies in Africa ranked by PPP.
20 Largest Economies in Africa Ranked by PPP
20 Largest Economies in Africa Ranked by PPP
Our Methodology
We have used GDP based on PPP for countries to rank the 20 largest economies in Africa. The figures are from 2023 and were sourced from the International Monetary Fund (IMF). Purchasing Power Parity (PPP) figures are used, and as a simple definition, PPP is calculated by subtracting price differences and nominal changes in the local currency and the US Dollar.
We ranked the countries in ascending order from the smallest country in Africa by GDP (PPP) to the largest country in Africa by GDP (PPP) in 2023.
20 Largest Economies in Africa Ranked by PPP
20. Burkina Faso
GDP (PPP): $62.79 Billion
Burkina Faso is a landlocked country located in West Africa. The country has a GDP per capita of $2,680 and ranks 20th on our list of the largest economies in Africa ranked by PPP.
Some of the leading African companies playing a vital role in the regional economy include Gold Fields Limited (NYSE:GFI), Zenith Bank PLC (NGX:ZENITHBANK), and Telecom Egypt (EGX:EGS48031C016).
19. Senegal
GDP (PPP): $78.55 Billion
Located in West Africa, Senegal has a population of 17.3 million. The country’s GDP per capita stands at $4,320. With a GDP of $78.55 billion, Senegal makes it to our list of the largest economies in Africa ranked by PPP.
18. Zambia
GDP (PPP): $83.69 Billion
Zambia is situated in the southern part of the continent. The country has a GDP per capita of $4,070. Zambia’s GDP of $83.69 billion makes it one of the largest economies in Africa ranked by PPP.
17. Cameroon
GDP (PPP): $133.34 Billion
Cameroon is a Central African country, located around the Gulf of Guinea. Cameroon has a GDP per capita of $4,660 and a GDP of $133.34 billion.
16. Uganda
GDP (PPP): $145.16 Billion
Uganda is a landlocked country in the east part of Africa. With a GDP per capita of $3,220 and a GDP of $145.16 billion, Uganda ranks 16th among the largest economies in Africa ranked by PPP.
15. Democratic Republic of the Congo
GDP (PPP): $150.88 Billion
Democratic Republic of the Congo is located in Central Africa. The country has a GDP per capita of $1,510. Democratic Republic of the Congo’s GDP of $150.88 billion makes it one of the largest economies in Africa ranked by PPP.
14. Tunisia
GDP (PPP): $162.1 Billion
Tunisia has a population of 12.3 million and is one of the richest countries in Africa. The country has a GDP per capita of $13,250. Tunisia ranks among the largest economies in Africa ranked by PPP.
13. Libya
GDP (PPP): $166.89 Billion
Located in North Africa, Libya is surrounded by the Mediterranean Sea. The country’s GDP per capita stands at $24,380. With a GDP of $166.89 billion, Libya makes it to our list of the largest economies in Africa ranked by PPP.
12. Sudan
GDP (PPP): $172.65 Billion
Officially the Republic of Sudan, the African country is located in the Northeast of the continent. The country has a GDP per capita of $3,600. Sudan’s GDP of $172.65 billion makes it one of the largest economies in Africa ranked by PPP.
11. Côte d'Ivoire
GDP (PPP): $202.65 Billion
Côte d'Ivoire is one of the largest economies in Africa ranked by PPP. The country has a GDP per capita of $6,960. Côte d'Ivoire’s GDP stands at $202.65 billion.
10. Ghana
GDP (PPP): $227.19 Billion
Officially the Republic of Ghana is a country situated in West Africa. The country has a GDP per capita of $6,910. With a GDP of $227.19 billion, Ghana ranks 10th on our list of the largest economies in Africa ranked by PPP.
9. Tanzania
GDP (PPP): $227.73 Billion
An East African country, Tanzania is home to some of the biggest wild animals. The country has a GDP per capita of $3,600. Tanzania ranks among the largest economies in Africa ranked by PPP.
8. Angola
GDP (PPP): $260.32 Billion
Angola is a Central African country with a diverse landscape. With a GDP per capita of $7,080 and a GDP of $260.32 billion, Angola ranks eighth among the largest economies in Africa ranked by PPP.
7. Kenya
GDP (PPP): $338.96 Billion
Kenya is an East African country with a coastline on the Indian Ocean. One of the largest economies in Africa ranked by PPP, Kenya has a GDP per capita of $6,580 and a GDP of $338.96 billion.
6. Morocco
GDP (PPP): $385.84 Billion
Morocco is a country with a diverse culture that borders the Atlantic Ocean and the Mediterranean Sea. Morocco is the sixth largest economy in Africa, having a GDP per capita of $10,410.
Investors looking to increase their exposure to the African market can consider investing in stocks including Gold Fields Limited (NYSE:GFI), Zenith Bank PLC (NGX:ZENITHBANK), and Telecom Egypt (EGX: EGS48031C016).
