The Economic Commission for Africa predicts that African countries will dominate the world’s top 10 fastest-growing economies in 2024 and 2025.
In 2024, key economies driving growth in Africa will include Niger, Senegal, Ivory Coast, the Democratic Republic of the Congo, and Rwanda.
Adam Elhiraika, Director of the Macroeconomics and Governance Division at ECA, highlighted Africa as the fastest-growing region following East and South Asia in the developing world during 2023. He expects this growth trend to continue through 2024 and 2025.
The report forecasts significant economic expansion in Niger and Senegal, primarily fueled by increased hydrocarbon production and exports.
Niger’s economic growth is projected to be boosted by a resurgence in agricultural output, despite vulnerability to adverse weather conditions, and an uptick in crude oil production, which is expected to benefit the transportation sector.
However, recent military coups and subsequent sanctions from regional blocs have negatively affected economic activities and led to significant social repercussions.
In Senegal, growth is anticipated to arise from increased private sector and infrastructure investments. However, electoral activities in up to 15 African countries, including recent presidential elections in Senegal, may influence the region’s short-term economic growth and development trajectory.
The report projects Africa’s economy to expand from 2.8% in 2023 to 3.5% in 2024 and further to 4.1% in 2025, supported primarily by net exports, private consumption, and gross fixed investment.
However, Africa’s economic progress is hindered by instability and remains below its potential level, insufficient to meet the Sustainable Development Goals and Agenda 2063 targets.
This calls for significant adjustments in fiscal and monetary policies, along with enhanced measures to address internal and external imbalances, as well as to tackle inflation and debt challenges.
