Africa: The 5 richest nations on the continent in 2022

While there are a variety of approaches to comparing the wealth of different countries, one of the most effective is to look at each country’s gross domestic product, also known as GDP.

Over a given period, the Gross Domestic Product (GDP) of a country is the conventional measure of the value added through the production of goods and services in that country, as measured by the United Nations. The amount paid on finished goods and services, as well as the amount of revenue generated from this production, is included in this calculation (minus imports).

The Gross Domestic Product (GDP) of a country provides an economic snapshot that can be used as a tool to estimate the economic size and growth rate of a country.

1. Nigeria

Nigeria, with a population of 211 million, is the most populous African country. It has a mixed economy with a lower-middle income base that depends primarily on gasoline and (to a lesser extent) agriculture. It is also a developing market, with expanding service, financial, technology and communications industries, among others.

In 2020, Nigeria’s GDP is expected to be USD 432.3 billion, and by the end of 2021 it is expected to be USD 440.00 billion, according to Trading Economics global macroeconomic models and analyst estimates. In the long term, Nigeria’s GDP is expected to reach around $445.00 billion in 2022 and $450.00 billion in 2023, according to the World Bank.

Due to growth in the commercial industries sector and the agricultural sector in the fourth quarter of last year, the Nigerian economy grew at a faster rate than expected by the central bank and the government last year. This was offset by a dramatic decline in oil production.

Nigeria’s gross domestic product grew by 3.4% last year, after shrinking by 1.92% in 2020, according to General Statistician Simon Harry, speaking to reporters in Abuja, the country’s capital. By comparison, the Ministry of Finance expects growth of 2.5% and the central bank expects growth of 3.1% in 2019. The better-than-expected increase of 3.98% in the three months to December of the previous year, compared to 4 percent in the third quarter, helped push up the figure for the year as a whole. 1.4% was the median forecast of 12 economists who took part in a Bloomberg survey, according to the survey results.

2. Egypt

According to the latest Statista report, Egypt ranks second among countries with the highest GDP in Africa at $394 billion, making it the second most prosperous country on the continent. Despite the consequences of the pandemic, Egypt’s GDP grew in 2021.

Egypt has 104 million inhabitants, making it the third most populous country in Africa. Additionally, Egypt has a diversified economy that is well developed in fossil, tourism and agricultural resources, while simultaneously developing a thriving information and communication technology industry.

Growth acceleration to 9% in the first half of FY2021/22 (helped by a resurgence of export-oriented industries) Reforms to increase private investment, exports and foreign direct investment (FDI) will continue to be essential for economic resilience and competitiveness.

Egypt’s GDP grew by 5.3% in the year ending June, and is expected to reach 5.2% in 2022/23 due to the current increase in activity economic. However, it is expected that base effects and demand overshoot will begin to diminish and economic activity will be negatively impacted by the ramifications of the crisis in Ukraine. As a result, growth is expected to be sluggish in fiscal years 2022/23.

3. South Africa

The South African economy is the 3rd on the continent, after Nigeria and Egypt. South Africa has approximately 58 million people, making it the most populous country in the world. According to official World Bank data, it is an upper-middle-income economy that is the most industrialized, technologically advanced and diversified on the African continent. Its gross domestic product (GDP) was valued at $301.92 billion in 2020, making it the most industrialized, technologically advanced and diversified economy on the continent.

South Africa’s Gross Domestic Product (GDP) represents 0.27% of the global economy. According to the World Bank.

The South African economy is so well diversified that it depends on various sources for its stability. Mining, manufacturing, financial services and tourism are the main contributors to the country’s gross domestic product (GDP). South Africa is endowed with an abundance of natural resources, including gold, diamonds, platinum and iron ore, and is one of the world’s largest exporters of these resources, especially gold and platinum. South Africa is also one of the world’s leading importers of these resources.

4. Algeria

Algeria is the largest country on the continent in terms of area. The majority of its economy is based on the oil and gas industry. Algeria has a population of over 42 million, making it an upper-middle-income economy. Algeria will have a GDP of $145.16 billion in 2020, making it the fourth largest economy on the continent by this metric. The main contributors are agriculture (33.3%), manufacturing (40.3%) and services (the remaining 40.7%) (47.4%). Petroleum, natural gas and petroleum products are Algeria’s main exports. Most of the country’s income comes from hydrocarbons (oil and gas).

Economic development of Algeria

Due to a more severe base effect, tighter fiscal policy and high inflation, growth is expected to deteriorate this year. In any case, the government’s new action plan, which aims to strengthen the non-hydrocarbon segment, should be coordinated with investments in hydrocarbon extraction to stimulate economic development. Social tensions, prolonged drought and the emergence of additional variations of Covid-19 are all potential risks. FocusEconomics panelists expect the economy to grow 2.6% in 2022, unchanged from last month’s forecast, and 2.1% in 2023, according to the panel’s projections.

5. Morocco

Morocco will be Africa’s 5th largest economy in 2020, with an overall GDP of US$112.87 billion, according to the World Bank. It has a population of over 36 million and is a growing lower-middle-income economy. Its economy is stable and has seen progress in a number of industries over the past decade, particularly in the service sector. Morocco is the second richest non-oil producing country in Africa.

Mining and manufacturing are the main drivers of the country’s economy. In addition to being the world’s third largest producer of phosphorus, Morocco benefits considerably from its various exports, which include, among others, vehicle parts, electrical equipment parts for aviation, inorganic chemicals, fish and citrus.

Morocco’s growth is expected to fall to 1.1% in 2022 due to drought, which caused agricultural production to fall by 17.3%. Still strong but declining industrial performance should support the economy, while tourism should accelerate its recovery. – In the medium term, the ongoing reforms are expected to improve the country’s potential growth.

African countries have enormous economic potential, with lucrative investment and partnership options. Are you looking for the biggest African countries to invest in to promote economic progress and earn profits? The above 5 countries highlighted above have the highest Gross Domestic Product (GDP) according to World Bank data. GDP can help investors make investment decisions because a weak economy often indicates lower profits and lower stock market values.