The African continent is rich in natural resources. Some of its 54 countries boast resources like diamonds, sugar, gold, uranium, silver, oil and petroleum. Oil being an invaluable commodity, Africa is the richest continent’s natural resource.
Africa is home to many of the world’s poorest countries. The majority of economies are in a state of flux, and poverty is pervasive. Some African countries, on the other hand, have the world’s fastest-growing economies.
Agriculture, trade, and natural resources are the most important aspects of the African economy, which is anticipated to exceed $29 trillion in GDP by 2050.
The Richest Countries In Africa
In 2017, according to the IMF, Tanzania’s GDP was $51.725bn. Half of the country’s workforce find employment in the agricultural sector, while the rest are divided between mining, manufacturing, food processing, and telecommunications.
The heavy reliance on agriculture makes Tanzania vulnerable to environmental shocks and commodity prices. Its main exports are minerals like gold and diamonds, coffee, cotton, tea, and tobacco.
Sudan had a GDP of $58.239bn in 2017, averaging 4.26% in the annual growth rate from 2005 until 2017. Despite the significant growth, Sudan still faces many problems such as political conflicts and lack of basic infrastructure in large areas. Most of the population also relies heavily on subsistence farming.
Coupled with the issues above, many Sudanese people will stay at or fall below the poverty line. As for the secession of South Sudan, the country lost three-quarters of its oil production in 2011, a massive blow considering that the oil industry drove much of Sudan’s GDP growth since 1999.
Kenya had a GDP of $79.511bn in 2017. Trade is a crucial part of the country’s growth. According to www.heritage.org, the combined value of exports and imports equals 38 percent of GDP. The agricultural sector dominates Kenya’s economy.
The country’s primary industries are agriculture, industry and manufacturing, and services. With a thriving agricultural sector, Kenya produces tea, coffee, sisal, pyrethrum, corn, and wheat are grown in the fertile highlands. Livestock predominates to the north and east, while coconuts, pineapples, cashew nuts, cotton, sugarcane, sisal, and corn are grown in the lower-lying areas. Tourism plays a significant role in Kenya’s service industry despite taking a downturn due to security issues and negative publicity.
With a 2017 GDP of $80.874bn, Ethiopia has one of the fastest-growing economies in the world and has the second-largest population in Africa. According to the IMF World Economic Outlook, growth for 2018 is predicted at around 8.5%. The country’s accelerated economic growth is mainly driven by industrial activity, investments in infrastructures like the Grand Renaissance Dam and a light rail system and manufacturing.
Ethiopia’s major exports include coffee, leather, textiles, natural gum, spices, and mineral products. However, agriculture is perhaps the country’s largest industry, like banking, telecommunications, and state-owned companies dominate transportation.
Morocco’s GDP was $109.824bn in 2017. The services sector accounts for just over half of GDP and industry a quarter, comprising mining, primarily phosphate rock mining, construction, and manufacturing. The tourism, telecoms and textile sector recorded the highest growth. Important exports excluding phosphates are electric components, inorganic chemicals, transistors, citrus fruits, vegetables, and fish.
Angola is still plagued by a 27-year-long civil war that began immediately after becoming independent from Portugal in 1975, before finally ending in 2002. But the country’s economy picked up considerably in the years following the war and is today considered one of the fastest-growing in the world, despite recent struggles with the global oil market. In 2017 it had a GDP of $124.209bn, but the sharp decline in global oil prices has caused GDP growth to drop to 1.5% from 10.3% pre-2014.
The government intervened by cutting expenditure, increasing non-oil revenue, and devaluing the kwanza. Angola exports crude oil, petroleum products, diamonds, fish, fish products, coffee, sisal, cotton, and lumber and its most prominent industries are oil, diamonds, agriculture, and fishing.
Algeria had a nominal GDP of $178.287bn in 2017, but the country’s economic growth slowed down in the same year due to a slight decline in hydrocarbon production. Petroleum and natural gases are the country’s most important mineral resources, with the most significant exports being either mined or manufactured, while agriculture plays a comparatively minor role. However, examples of some of Algeria’s principal farm crops exported are wheat, oats, citrus fruit, olives, and dates.
Egypt has a long, rich trade history with plenty of ups and downs. After the 2011 revolution, foreign exchange reserves fell considerably. Reserves fell from $36bn in December 2010 to only $16.3bn in January 2012. The revolution also negatively impacted the country’s economic growth, urging the government towards economic reform that’ll focus on sustainable development.
The GDP in 2017 was $237.037bn. Some of the country’s main exports include petroleum, insulated wire, video displays, and gold. The biggest non-petroleum-based industries are tourism, textile production, food processing.
2. South Africa
South Africa has the second-largest economy in Africa, after Nigeria, with a GDP of $349.299bn. Statistics were higher than expected for 2017, seeing as the country’s economy grew by 1.3%, just higher than the National Treasury’s expectation of 1.0%. The highest performing industry to contribute to this growth was agriculture, followed by mining and manufacturing.
Demand for manganese ore, chrome, iron ore, and anything used in steel production helped spur on this growth. In addition, some of the country’s key exports include corn, diamonds, and fruit. Considering that South Africa is the world’s second-largest producer of gold, it should be no surprise that this precious metal is also one of the country’s main exports.
With a GDP of $376.284bn in 2017, Nigeria has the highest GDP in Africa and has the largest population. With a current population of 195 million based on the latest United Nations estimates, Nigeria is a powerhouse of economy and development compared to its neighbours. With an abundance of natural resources, some of the country’s biggest exports include oil, cocoa, and rubber. Nigeria is the Richest Countries In Africa
Nigeria is Africa’s largest crude oil supplier. The booming agricultural sector is responsible for 18% of the country’s GDP and almost a third of employment. Ranking first in Africa in farm output, Nigeria’s main agricultural exports are cocoa, peanuts, rubber, and palm oil.