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From the 54 Independent States Which is The Richest Country in Africa?

African Countries -Richest 

From the 54 Independent States Which is The Richest Country in Africa? What is the richest country in Africa. Africa is a huge continent that has diversity of countries with different characteristics. It houses 54 independent countries that have their background and peculiar economic policies to guide their states. In this article we present you the list of richest African countries. The article is written by an economical website of investment monitor. Please read on:

 

Largest Economy-Richest

Nigeria is the largest economy not only in West Africa but across the wider continent. It accounted for 18.3% of total African GDP in 2020, the largest share of all countries. Nigeria’s GDP overtook that of South Africa – once the continent’s major players – in 2012. In 2020, Nigeria’s GDP was $432.29bn, while South Africa’s came in at $301.92bn. Nigeria is already the most populous African country and is expected to overtake the US to reach 400 million people by 2050.

 

Despite this, Nigeria faces stark economic challenges. Its economy is heavily reliant on the oil and gas industry, which accounts for 90% of the total export volume and more than 80% of government revenues. Nigeria produces 2.5 million barrels of crude oil per day on average, making it Africa’s largest producer and the sixth largest in in the world.

 

Richest
Richest

Recession -Richest

The country fell into a recession in 2016, largely due to low petroleum prices and terrorist attacks on pipelines in the Niger Delta. It returned to growth in 2018 but recovery has been largely dependent on oil prices. The government has repeatedly stated plans to invest in infrastructure projects to diversify its oil-dependent economy.

 

Nigeria’s GDP dropped by 3.5% between 2019 and 2020, with Covid-19 having a significant impact on the extractive sector. Unemployment and inflation rates that were already on the rise pre-pandemic rose sharply in 2020. As a result, the World Bank has warned that, without substantial reforms, the pandemic could send personal incomes back by four decades.

 

According to the National Bureau of Statistics, GDP grew by 5% in the second quarter of 2021 but may not be enough to make a meaningful impact as it is barely equal to the country’s population growth rate. Cabo Verde has the highest GDP per capita of all West African countries at $3,064 in 2020. The island nation has been a stable democracy since the early 1990s and remains one of Africa’s most developed and democratic countries.

 

Natural Resources-Richest

Despite few natural resources, Cabo Verde has a dynamic, service-oriented economy focused on commerce, trade, transport and public services. Tourism is a key sector and provides direct and indirect employment for many residents. This is likely why Cabo Verde was one of the West African countries hardest hit post-Covid. Its GDP contracted by 14% between 2019 and 2020.

 

After the start of the Covid-19 pandemic, Cabo Verde’s government overhauled its Ambition 2030 strategy, supported by the UN and focused on sustainable development. The plan seeks to diversify the economy away from tourism and develop sectors such as maritime trade, ocean-based commerce, digital innovation, and the green and circular economy.

 

Ghana had the second-largest GDP in West Africa in 2020. Efforts have also been made to diversify the economy into sectors such as digital technology goods, automotive and ship construction as well as hydrocarbons and industrial minerals. Although rich in natural resources such as cocoa, Ghana isn’t dependent on one commodity. In addition, Ghana became the fastest-growing economy in the world in 2011 due to a GDP rebasement

 

Economic Problems-Richest

However, the country has to deal with many economic problems. Since January 2016, the IMF has warned that Ghana is at high risk of debt distress. This has been further aggravated following Covid-19, with the government helping contain the pandemic and support the economy, but at the cost of a record fiscal deficit. According to Renaissance Capital, Ghana’s interest payments as a proportion of government revenues were 50% in 2020, the highest in Africa.

 

Côte d’Ivoire

Côte d’Ivoire experienced the highest GDP growth among West African countries between 2011 and 2020 at a compound annual growth rate (CAGR) of 9.21%. After the end of the 2011 political crisis, Côte d’Ivoire’s economy rebounded sharply, culminating in a record $61bn in 2020. The government has introduced policies to encourage transparency and attract businesses including the 2016–2020 National Development Plan. It was implemented to develop large infrastructure projects driven by the private sector.

 

Following the end of its civil war, Sierra Leone’s GDP has been slowly growing at a CAGR of 6.1% between 2002 and 2020. The economy is heavily dependent on mineral exploitation and can be described as ‘a rentier state’, in which most of its national revenues come from the rent paid by foreign individuals or governments.

Gambia

Gambia’s GDP has increased steadily since 2014. The country recorded the highest population growth in West Africa at 2.9% in 2020, which can be attributed to a rapidly falling mortality rate. Gambia’s economy is heavily reliant on agriculture, which contributes 20% to GDP and employs 78.6% of the labour force. The country is also highly dependent on foreign aid. In May 2021, the IMF Executive Board granted $14.4m to Gambia to support its recovery post Covid-19.

Guinea

Guinea was one of the few West African countries to grow its economy in the wake of the Covid-19 pandemic. Its GDP increased by 16% in 2020, going from $13.5bn in 2019 to $15.7bn. This is connected to a strong 18.4% increase in the mining industry in 2020 and growing Chinese demand for bauxite and aluminium, of which Guinea is a major supplier.

 

In September 2021, Lieutenant Colonel Mamady Doumbouya, the commander of the country’s special forces, overthrew President Alpha Conde in a coup, raising the political and operational risk for its natural resources.

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