African countries to dominate the world’s top 10 growing economies
African countries have been predicted to dominate the world’s top 10 highest-growing economies in 2024, according to a report on Recent Economic and Social Developments in Africa by the Economic Commission for Africa (ECA).
Niger, Senegal, Ivory Coast, DRC, and Rwanda are expected to emerge as the most notable growth drivers in Africa for the year 2024.
According to Adam Elhiraika, Director of the Macroeconomics and Governance Division at ECA, Africa was the fastest-growing region in the developing world after East and South Asia in 2023.
The report shows that the continent is expected to grow from 2.8% in 2023 to 3.5% in 2024 and reach 4.1% in 2025, mainly underpinned by net exports, private consumption and gross fixed investment.
African countries driving growth
Per the report, Niger and Senegal are expected to experience huge economic growth, primarily driven by the expansion of hydrocarbon production and exports.
Growth in Niger will be fuelled by the revival of agricultural production although it is vulnerable to unfavourable weather conditions, and a rise in crude oil production.
However, recent military coups, coupled with sanctions from regional blocs, have disrupted economic activity and imposed significant social costs.
Senegal’s growth will be fueled by increasing private and infrastructure projects. However, the participation of residents from up to 15 African nations in elections this year, including Senegal’s recent presidential elections, could potentially impact short-term growth and development.
The Democratic Republic of Congo (DRC) is expected to experience growth driven by the extractive sector, particularly with the opening of new oilfields.
Meanwhile, Rwanda’s growth will be fueled by private consumption and investment.
Notably, Africa faces threats of tighter monetary and fiscal conditions and notable debt sustainability risks, Elhiraika said.
He added 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.
