Africa is home to many of the world’s poorest countries. The recovery from the COVID-19 pandemic has been slowed because of the instability of many African economies, severe poverty, and limited availability of vaccines. Many African countries, such as Cameroon, Chad, Nigeria, and Somalia are currently at war with either terrorist insurgencies or one another, which adds to the strain on the economies of these countries even further which is why you will see just a handfull of African countries listed among the top 100 richest countries in the world..
In this article, you will have a broad and insightful info about the top 10 richest countries in Africa based on their GDP and per capital income per citizen. African countries are home to some of the world’s fastest-growing economies, according to the African Development Bank, the African economy would achieve a GDP of $29 trillion in 2050. More than 20 million people look for work each year in Sub-Saharan Africa alone, indicating that the region has a ready and willing workforce. Africa is catching up with the rest of the globe in terms of technology, as well. Nearly 100,000 people in sub-Saharan Africa sign up for the internet every day. No matter how poor a country may be in Africa compared to the rest of the globe, there is no doubt about the continent’s enormous potential. The nominal GDP of Africa’s 54 countries and 1,3 billion inhabitants is $2.2 trillion.
There are three major contributors to the economy: agriculture, the extraction of natural resources, and international commerce. With a population of more than a billion people, Africa is the fastest-growing continent in the world today.
African economies are expected to reach a GDP of $29 trillion in 2050 if growth and improvement continue. This will make Africa an important player in the global economic landscape. “Middle income” status, defined as a GDP per capita of at least $1,000, is expected for most countries on this continent during the next decade.
Measuring African Countries’ Wealth Based on their GDP
One of the most accurate one is to look at each country’s gross domestic output. The total value of all commodities and services produced by a country in a given year is known as the national product. When comparing countries, GDP is frequently first adjusted for Purchasing Power Parity (PPP), which alters GDP about local prices, and is expressed in a fictitious currency known as international dollars (INT).
Nigeria has the greatest GDP in Africa, with a 2021 estimate of USD 514 billion. At $394 billion, Egypt’s GDP was the second-highest in Africa, behind only Nigeria’s. Second, only to South Africa in terms of economic output, Algeria and Morocco round out the top three. The economies of Africa are booming. African countries dominated the list of the world’s fastest-growing economies.
In 2022, the nations in Africa with the greatest GDP per capita will be included in this article. This list of Africa’s wealthiest nations was compiled using data from the IMF and World Bank.
10 Richest Countries in Africa 2023
It’s worth noting that Nigeria is Africa’s richest country, with a GDP of $480.48 billion. There are almost 200 million people in this West African country, making it one of Africa’s most important economies. Nigeria is Africa’s richest country, with a GDP of little over $480 billion.
In addition to the plentiful supply of crude oil, the financial, transportation, infrastructure, and tourist sectors account for a sizable portion of the country’s GDP.
According to the Organization of the Petroleum Exporting Countries (OPEC), the country produces an average of 1.6 million barrels of crude oil per day. Ten percent of the country’s GDP and more than 80% of export revenue come from these petroleum exports.
Nigeria is rich in raw materials and natural resources in addition to petroleum, which contributes to the region’s prosperity. Some of the most common ones are iron ore and niobium as well as coal, limestone, zinc, lead, and copper. Agriculture, which accounts for more than 20 percent of the country’s GDP, produces cocoa and rubber. Nigeria has become Africa’s largest consumer goods retailer thanks to the country’s vast population and the digitally savvy citizens that live there.
Between 2000 and 2014, Nigeria’s GDP increased at a 7.0% annual pace, according to the World Bank, making it the fastest-growing continent in Africa. The government has placed a great deal of focus on safeguarding its natural resources, dependence on oil refineries and processing facilities.
It’s no surprise that Nigeria is Africa’s wealthiest country, with its diverse ethnicities, stunning scenery, and enormous population making it Africa’s top producer of GDP.
For a long time, the richest country in Africa belonged to this ancient continent in northern Africa. Following the Arab uprising in 2011, the economy took a serious hit, and the country’s foreign exchange reserves plummeted. At slightly around $400 billion, Egypt now occupies third place on this wealth index.
Over the past decade, economic activity has increased and stabilized, resulting in good economic development. An economic reform program including the IMF was just completed by the government to improve the economy. Economic growth in 2019 was 5.6%, up from the previous year’s 5.3%. As a result, the country has experienced a decrease in unemployment, an increase in foreign exchange reserves, a rise in exports of products and services, and an increase in tourism.
Exports of petroleum and natural gas, tourism, wholesale and retail trade, construction, and real estate are all major contributors to the Egyptian economy. Over the last few years, the state’s economy has moved away from relying solely on exports of raw materials, with the result that the service sector now accounts for more than half of the GDP.
Due to high poverty, unemployment, a weak healthcare system, and a worldwide economic slump, Egypt may confront some social and economic challenges.
3. South Africa
As the second-richest African country, South Africa is a major force on the continent. An economy with superior infrastructure and a GDP of more than $400 billion has made the country one of the world’s fastest-growing nations.
With a diverse economy, South Africa is unique among the countries on this list.
With a strong combination of mining, manufacturing, finance, and tourism, this country has a lot to offer. Natural resources and raw material exports like gold, diamonds, platinum, coal, and iron ore are also abundant in the country. Commodities such as gold and platinum have made it one of the world’s leading exporters. As a tourist destination, the country is well-known around the world, and its economy relies heavily on tourism.
However, the current state of affairs has prevented it from realizing its full potential. After four quarters of negative GDP growth, the country was forced into recession. Since then, the pace of growth has slowed to only 0.2% in 2019. Furthermore, South Africa has one of the world’s highest levels of inequality.
Algeria, the continent’s largest country and one of the most developed country in Africa, is located in the northern part of the continent and is the fourth wealthiest country in Africa. With a GDP of over $160 billion, the county has made great progress in eliminating poverty by 20 percent in the last two decades, thanks in part to its robust economy and well-developed infrastructure.
This Saharan country’s economy is primarily dependent on its vast supplies of crude oil. Oil and natural gas make up about 70 percent of the country’s gross domestic product. More oil reserves have just been discovered in this rapidly industrializing country. Agriculture, industrial operations, commercial services, and construction are some of the other industries that make up the Algerian economy. The country is also a major supplier of Ammonia to the African continent as a whole.
However, it’s worth mentioning that the country’s cash reserves have decreased as a result of the current oil price deflation and volatility. A slowdown in Angola’s economy has been attributed to political unrest and controversies surrounding the country’s oil industry.
Morocco is the fifth richest country in Africa, with a GDP of almost $130 billion. This North African country’s economy has grown steadily over the past decade in a variety of sectors. It is the second-richest non-oil-producing African country in terms of per capita wealth.
Mining and manufacturing are the backbones of the country’s economy. Locals are cordial to travelers, and the government places a heavy focus on encouraging visitors to come to the country, which is famed for its natural beauty and tourist attractions.
Morocco is the world’s third-largest producer of phosphorus, with the majority of its phosphorus from agriculture. The country’s diverse exports, not just electrical equipment, vehicles, and vehicle parts, have helped it immensely. The textile and telecommunications industries are also significant contributors to the national economy.
As a result of internal issues, economic growth in Morocco has been hindered, with real GDP growth in 2019 only amounting to 2.7%, falling short of the World Bank’s prediction of 2.9%.
Kenya has a GDP of USD 109,49 billion. The East African nation of Kenya, with a GDP of more than $100 billion, comes in second on the list of Africa’s richest countries. In Southeast and Central Africa, this country is the richest due to a strong economy, a well-established coffee and tea industry, as well as an expanding agricultural sector.
For generations, traders from Asia and the Arabian Peninsula have relied on its shoreline as a launching pad for their commercial routes. Because it is not reliant upon oil production as the other countries on this list, Kenya’s economy continues to expand in other ways as well.
Sub-Saharan Africa’s fastest-growing economy in Kenya, which grew its GDP by 5.7 percent this year. Investor confidence, governmental and service sector stability, a sound macroeconomic environment, and an unambiguous corporate objective all contribute to this.
The industrial sector accounts for about half of the nation’s gross domestic product. Coffee, tea, and maize are the primary crops, accounting for 35% of the country’s total GDP. Tourism, financial services, and technology all grew quickly, and petroleum is an important source of export revenue.
It is estimated that Ethiopia has a GDP of $92,76 billion. Ethiopia, a landlocked country located is Africa’s sixth richest country. Archaeological evidence dating back more than 3 million years points to this ancient land as the origin of the coffee bean. Ethiopia is Africa’s leading coffee and honey producer, which accounts for a significant percentage of the country’s foreign currency. Some of the other products exported from the country include legumes, seeds, and flower bouquets.
Agriculture, building, industry, tourism, food processing, and other resources and energy all contribute to the GDP’s total of about $90 billion. The region’s greatest potential resource is agriculture, which accounts for more than 40% of GDP, 60% of exports, and more than 80% of total employment in the region.
Growth in Ethiopia has averaged 9.9 percent year-on-year since 2008. Few African countries have been able to maintain such consistent annual growth, and the country has begun to draw in outside investment as a result. The administration began an ambitious economic reform in 2018 to further open the economy and lead change. Poverty was reduced to 31% in 2015, and the country aims to achieve middle-income by 2025.
High consumer inflation, social unrest, and a weak private sector, on the other hand, are things to be on the lookout for.
Economically varied and resource-rich, Ghana is located in West Africa. Eighth on Africa’s wealthiest countries list, with a GDP of more than $75 billion, is the Republic of the Congo. In sub-Saharan Africa, this country was the first to attain independence from colonial authority and the first to reduce extreme poverty by half.
Economic growth of just over 6% in the last two years drew international investment due to the country’s overall favorable business environment. Services account for around half of Ghana’s GDP and employ about a third of the country’s workforce. Agriculture is the third-largest contribution to GDP, accounting for less than a quarter of the total.
As a result of the country’s rich natural resources, it has seen a recent economic boom. The country’s primary export is gold. Petrochemicals are the next most important export, accounting for half of all outbound foreign currency exchanges from the country. Cocoa beans, lumber, and gold are all significant exports from the country.
Raw resources are abundant in Angola, which is home to the continent’s largest known deposit. It has the potential to rise to the top of this list of Africa’s richest countries. However, the country’s economy has been badly impacted by resource mismanagement and internal corruption. It ranks ninth on this list with a GDP of more than $70 billion.
Over a third of Angola’s GDP is derived from its vast oil and natural gas reserves. Crude oil exports are an important source of foreign currency. 90% of the country’s export revenue comes from crude oil sales. Diamonds and cargo ships are also notable exports. The agricultural industry is also projected to play a significant role in the economy in the years to come.
In 2002, Angola’s civil war came to an end. Since then, there have been positive developments in the economy and stability. Political and structural reforms were worked on with the IMF and World Bank. Once considered a poor African nation, the country’s economy has since grown at one of the world’s fastest rates.
Tanzania comes in at No. 10 on our list of the richest African countries, with a GDP of slightly over $70 billion in 2013. Known for its world-famous national parks and, of course, Mount Kilimanjaro, the country has a diversified economy with a low-to-middle income.
According to the United Nations, the population of Tanzania is approximately 55 million. The absolute number of people living in poverty has stayed the same, notwithstanding a fall in the poverty rate during the last few years. The government’s investment in a new rail line, the restoration of a bankrupt state airline, and a new hydropower plant contributed to an expected GDP growth rate of 5.6% in 2019.
In addition to gold, Tanzania is a major exporter of cashew nuts, coffee, and cotton. President John Magufuli’s government wants to increase Tanzania’s budget deficit over the next few years in order to fund capital expenditures for new projects.
Agriculture accounts for over a quarter of the country’s GDP and nearly half of its workers. Mining, manufacturing, building, electricity, natural gas, and water supply are among the rapidly expanding industries that account for about 30% of GDP. Gold, coffee, cashew nuts, and cotton are the primary exports.
In recent years, Tanzania’s economy has grown at a rate of 5.6 percent, although this appears to be slowing down. As a result of massive infrastructure spending, the long-term outlook is bright. Even though economic growth and poverty rates have declined in recent years, the overall number of people living in poverty has remained stable.
There are 54 countries in Africa, making it a resource and innovation powerhouse. Gold, sugar, uranium and silver are just some of the valuable natural resources that make Africa — and investments there — a very attractive place to do business.
Oil is a priceless commodity, and the production of it places countries like Nigeria and Egypt at the top of the GDP rankings (GDP).
In spite of the continent’s current social and political challenges, there is no doubt that it will continue to grow in the years ahead.