In this article, we will be taking a look at the 25 richest countries in Africa. To skip our detailed analysis, you can go directly to see the 10 Richest Countries in Africa.
The entire continent of Africa has a population of more than 1.2 billion people, lower than the population of either of the two most populated countries in the world, India and China. According to the Institute for Security Studies, Africa seems to be losing the war against extreme poverty, with over 30 million Africans falling into extreme poverty after the Covid-19 pandemic hit, even though Africa fared much better than most other continents. Extreme poverty here refers to living on less than $2 a day. About 34% of the total population in Africa lives in extreme poverty.
23 of the 28 poorest countries in the world are located in Africa. Globally, extreme poverty is being reduced and just from 2010 to 2013, more than 1 billion people were lifted out of poverty across the world. Even as extreme poverty decreases in other parts of the world, the same is not being observed in Africa. The 23 poorest countries in Africa have a population where more than 30% are living in extreme poverty. Back in the 1990s, China, Vietnam and Indonesia had similar poverty levels as Lesotho, Madagascar, Nigeria and Zambia. While the Asian countries were able to implement significant improvements in the last three decades, the same cannot be said for the African countries.
Despite these issues, many African countries have been performing quite well. The 25 richest countries in Africa have a combined GDP of more than $2.4 trillion, with just 7 countries having a GDP greater than $100 billion. However, just to put it in context, the country with the highest GDP is still worth less than some of the biggest companies in the world, including Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG) and Amazon.com, Inc. (NASDAQ:AMZN). To determine the richest countries in Africa, we have considered both the total GDP as well as the GDP per capita, since the total GDP doesn’t always tell the entire story. After all, if a country has a population of just 1 million people and a GDP of $10 billion, isn’t it faring much better than a country with a population of 100 million and a GDP of $100 billion. With data taken from the World Bank, we assigned 60% weightage to GDP per capita and 40% weightage to total GDP. So, without further ado, let’s take a look at the countries most capable of dragging the continent out of poverty, starting with number 25:
25. Republic of Congo
Total GDP per capita of the country: $2,214
Total GDP of the country (in billions): $12.5
The economy of Republic of Congo is home to petroleum extraction and support services which form the majority of its industrial sector.
24. Benin
Total GDP per capita of the country: $1,428
Total GDP of the country (in billions): $17.8
An undeveloped economy dependent on cotton and subsistence agriculture, Benin has seen significant privatization in recent years.
23. Zambia
Total GDP per capita of the country: $1,121
Total GDP of the country (in billions): $21.2
In the 2000s, Zambia was one of the fastest growing economies in the continent, though its economic growth has stalled in recent years due to declining copper prices and fiscal deficits.
22. Uganda
Total GDP per capita of the country: $858
Total GDP of the country (in billions): $40.4
While Uganda has great potential for growth, it has been affected by significant economic instability.
21. Namibia
Total GDP per capita of the country: $4,729
Total GDP of the country (in billions): $12.2
Namibia is home to more than 200,000 skilled workers in a population of just 2.4 million. The majority of the country’s population is engaged in subsistence agriculture and herding.
20. Mauritius
Total GDP per capita of the country: $8,812
Total GDP of the country (in billions): $11.2
The African country with the second biggest GDP per capita, Mauritius’s economy is dependent primarily on agriculture and tourism, while the government has tried to diversify the economy for decades.
19. Senegal
Total GDP per capita of the country: $1,607
Total GDP of the country (in billions): $27.6
The economy of Senegal is based on various major industries including construction, fishing, tourism, mining and agriculture.
18. Zimbabwe
Total GDP per capita of the country: $1,737
Total GDP of the country (in billions): $26.2
According to The Herald, Zimbabwe has the second biggest informal economy in the world as a percentage of its total economy. At one point in the late 2000s, Zimbabwe saw the highest annual growth rate in the world before stagnating till 2020, after which it increased by 45% in 2021.
17. Equatorial Guinea
Total GDP per capita of the country: $8,462
Total GDP of the country (in billions): $12.3
After Seychelles and Mauritius, Equatorial Guinea has the highest GDP per capita in the entire continent thanks to the discovery of major oil reserves in 1996.
16. Tanzania
Total GDP per capita of the country: $1,136
Total GDP of the country (in billions): $67.8
Tanzania is rich in natural sources which have helped it drive its economy over the years.
15. Cameroon
Total GDP per capita of the country: $1,662
Total GDP of the country (in billions): $45.2
While Cameroon used to be considered among the richest countries in Africa after its independence, it suffered after a drop in prices of its main commodities. However, Cameroon still boasts vast reserves in various commodities including oil.
14. Ethiopia
Total GDP per capita of the country: $944
Total GDP of the country (in billions): $111.3
The government of Ethiopia is in the process of privatizing many state-owned companies to boost the economy. If Ethiopia wants to continue to be in the list of the richest countries in Africa, it needs to adds hundreds of thousands of jobs each year to keep in line with population growth.
13. Botswana
Total GDP per capita of the country: $7,348
Total GDP of the country (in billions): $17.6
The Southern African nation is home to one of the fastest-growing economies not just in Africa but in the world. It is considered to be the 10th fastest growing economies in the world according to IMF.
12. Gabon
Total GDP per capita of the country: $8,017
Total GDP of the country (in billions): $18.3
Gabon has one of the highest GDPs per capita in the continent, with its GDP per capita often considered to be four times higher than most countries within Sub-Sahara Africa.
11. Angola
Total GDP per capita of the country: $2,138
Total GDP of the country (in billions): $72.5
The Southern African country has seen its economy being significantly impacted by decades of internal strife and political instability which includes the war for independence with Portugal from 1961 to 1975. Angola’s economy is heavily dependent on the oil sector. Corruption is one of the main reasons why the country’s economy hasn’t reached its true potential.
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Disclosure: None. 25 richest countries in Africa is originally published at Insider Monkey.