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Nigeria is at the top of the ranking of the richest African countries, ahead of Egypt and South Africa. But Nigeria, being the most populated country pales in blue when the per capita income is the yardstick to measure its wealth
Let there be a shocker for those who believe Africa is a conglomeration of least developed and poor countries. Not many would know that some of the countries have per capita income comparable to that of the developed countries. More important is the potential of most of the countries to grow and prosper riding on the back of their huge resources and enviable demographic dividend, among other things. Here is a snapshot of their rankings and potential to move in the value chain. If one goes by the prognostication of the IMF, the ranking may hold good for the next few years, if not more.
Nigeria stands out as the most powerful economy on the continent. With a GDP estimated at US$477 billion in 2022, Nigeria is at the top of the ranking of the richest African countries, ahead of Egypt and South Africa. But Nigeria, being the most populated country, pales in blue when the per capita income is the yardstick to measure its wealth. Yet, the West African country can boast of having the maximum number of billionaires on the continent, including the richest man in the continent, Aliko Dangote, the cement and now petrochemical baron. There are predictions that by 2030, Nigeria will join the club of trillion-dollar economies, if it maintains the present growth tempo.
The ranking is done on various parameters like gross domestic product (GDP), per capita income, or other economic indicators, adjusted against purchasing power parity (PPP).
South Africa, which comes as the second, harks back the story of a frontrunner yielding a slot to a relative newcomer Nigeria. The country boasted of having an affluent economy when its neighbors were not even heard of. There are reasons for its sliding down from the premier positioning in the ranking. Economists maintain that the continuance of state-owned enterprises is the major reason for the lackluster performance, driven down by their huge losses and the state coming to the rescue by pumping in resources. Efforts to reform and restructure its governance apparatus are met with resistance.
Egypt has a diversified economy with sectors such as tourism, oil and gas, and agriculture. It is also endowed with a sort of political stability, unlike its other counterparts in the region. Yet, it is a fact that the country has yet to take advantage of those positive indicators to surge ahead in the ranking.
The fourth slot is occupied by Algeria, which has significant oil and natural gas reserves, which contribute significantly to its economy. The fifth slot is occupied by Morocco, which boasts a diversified economy, with sectors such as tourism, agriculture, industry, and services. Next in importance is Angola with its oil and natural resources and preparedness to develop the tourism sector. Kenya is not far behind in having a diversified economy including the booming service sector, agriculture, and tourism.
Ghana’s economy is supported by sectors such as agriculture, oil and gas, and services. Agriculture, tourism, and natural resources contribute to Tanzania’s economy. Next comes Ethiopia, which is experiencing rapid economic growth, with sectors including agriculture, manufacturing, and infrastructure poised to grow.
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Significantly, the ranking does not include two Island Nations, which are part of the continent, Seychelles and Mauritius, which are mostly tourism and fishery-driven economies. They cannot boast comparable GDP figures as the rest of the countries in the continent; but in terms of per capita income, they have a ranking way ahead of others because of their small size and population.
