10 richest African countries in 2021 based on GDP
According to Investopedia, the Gross Domestic Product (GDP) provides a country’s economic snapshot or scorecard. This is because the GDP comprehensively measures the monetary value of all the products and services that are produced in a country within a given period of time.
Although typically measured annually, there are still quarterly GDP reports. It is calculated by considering factors such as production, expenditures and income. Inflation can sometimes be adjusted to reflect inflation and population growth, thereby providing deeper insights.
The GDP is important for several reasons. For one, it gives a relatively accurate estimation of the size and growth rate of a country’s economy, thereby helping decision makers and investors to make strategic and well informed decisions.
Just to bring this into context, it should be noted that by comparing different countries’ GDP growth rates, foreign investors can easily decide which countries “whether to invest in fast-growing economies abroad—and if so, which ones”.
There are different types of GDP, including nominal GDP, real GDP, GDP per capita, GDP growth rate and GDP purchasing power parity.
Having explained all that, let us now briefly examine the top ten African countries with the highest Gross Domestic Products in 2021.
Note that for this article, the data used in this article was derived from reputable and highly reliable sources, including Statista, a global data repository firm specialised in providing markets and consumer data insights.
Top ten African countries with the highest GDPs in 2021
- Nigeria: Before now, you have probably heard speeches or seen articles where Nigeria was referred to as the biggest economy in Africa. Well, that’s mainly because of the size of its GDP. Nigeria has the highest GDP in Africa, standing at $514.05 billion in 2021.
- Egypt: This North African country has the second highest GDP size in Africa. At $394.28 billion, it is the highest GDP in North Africa and one of the only three countries from the region in this top ten ranking.
- South Africa: This country in Southern Africa comes in third on this list, with a GDP size of $329.53 billion. South Africa is one of the only two countries from Southern Africa that made it to the list.
- Algeria: This is the second country from Northern African on this list. According to Statista, Algeria has a GDP size of $151.56 billion, the fourth largest in Africa.
- Morocco: Next, we have Morocco, yet another Northern African country. Data verified by Business Insider Africa showed that this country has the fifth highest GDP size in Africa at $124 billion.
- Kenya: This country in East Africa has a GPD size of $106.04 billion. It is the only country in the Eastern African region that made it to the top ten list.
- Ethiopia: This is the only country in the Horn of Africa that made it to this list. The country has a GDP size of $93.97 billion, according to Statista.
- Ghana: This is the second West African country on this list and it has a GDP size of $74.26 billion.
- Ivory Coast: This francophone West African country has the ninth highest GDP in Africa at $70.99 billion.
- Angola: At $66.49 billion, Angola has the tenth highest GDP in Africa.
