Cape Town, South Africa. Image: Arnold Petersen/Shutterstock
Five countries account for half of Africa’s total GDP and play a key role in the continent’s economy, but where exactly are they located?
Written by Victoria Heath
Consisting of 53 countries and a total population of over 1.3 billion people, Africa is the second largest continent on Earth. Despite its vast number of countries, only five account for almost half of the continent’s total GDP, a measure of the total value of goods and services produced. So where are these five countries and what do they produce?
5) Ethiopia
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Ethiopia’s total GDP reaches $205.3 billion and its economy is one of the fastest growing countries in the world. Investment in public infrastructure and industrial activities, including manufacturing, is one of the reasons for the high growth. The project includes the Grand Renaissance Dam, the largest dam in Africa. The dam will not only supply energy to Ethiopia, but also enable electricity export, and will also enable the region’s first light rail system of its kind.
Top exports from Ethiopia in 2022 include coffee ($1.55 billion), gold ($546 million) and cut flowers ($255 million), with most going to the UAE and the United States. , for Germany.
Consistently high economic growth over the past decade has reduced urban and rural poverty, with the number of people living below the country’s poverty line falling from 30 percent in 2011 to 24 percent in 2016. However, despite being in the top five, Ethiopia remains one of the poorest countries in the region, with a gross national income per capita of $1,020.
The Ethiopian government is on track with its 10-year development plan from 2020 to 2030, which it hopes will maintain the high growth seen while transitioning to a more private sector-driven economy.
4) Nigeria
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Nigeria’s GDP is $252.74 billion and the country's economy is diversified across various sectors. The country's oil sector accounts for about 14% of total GDP, with growth in non-oil sectors such as financial services, communications and entertainment also contributing.
In 2022, Nigeria’s top exports were crude oil ($52.1 billion), oil and gas ($9.04 billion), and nitrogen fertilizers ($2 billion), mainly to Spain, India, and France.
The number of telephone lines in the country increased from 400,000 in 2001 to 140 million in 2015, and the number of jobs within the telephone sector also added more than $25 billion to the economy. As a result, related sectors such as e-commerce and entertainment began to develop, including the Nigerian film industry known as Nollywood. The sector generates nearly $600 million annually and employs more than 1 million people, second only to the agricultural industry.
Nigeria is also a net exporter of minerals to countries around the world, as Nigeria is also rich in limestone, which is used in the manufacture of cement.
3) Algeria
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In third place is Algeria, with a total GDP of $266.78 billion. Until 1962, Algeria’s economy was dependent on agriculture, but since then it has shifted to a strong role within the oil and gas sector. Each year, gasoline and natural gas account for one-third of the country’s GDP, with most of it exported to Italy, Spain, and France. The country’s GDP recently increased by an additional 4.1% as natural gas production hit a record high in 2023.
Rising global oil prices will allow Algeria to invest in infrastructure and social policies that can stabilize its economy and alleviate domestic poverty. Ensuring that the country diversifies its economy into exporting non-hydrocarbon products will ensure that employment prospects do not plummet.
The country’s standard of living is moderately developed, but food production is far below the self-sufficiency rate.
2) Egypt
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Egypt’s total GDP has reached $347.59 billion, and its top exports as of 2022 include oil and gas ($9.53 billion), nitrogen fertilizer ($3.37 billion), and refined oil ($2.8 billion). 80 million USD), mainly to Turkey, Italy, and the United States.
In recent years, the country has used investment to finance megaprojects such as expanding the Suez Canal, building smart cities and building new roads and transport links in hopes of further boosting GDP.
Egypt’s tourism sector also contributes significantly to the economy, accounting for 24 percent of total GDP.
However, the country has recently experienced very high levels of inflation coupled with a shortage of foreign currency. Solutions proposed to further strengthen the economy include strengthening the protection of property rights, strengthening the judicial system, and effectively combating corruption.
1) South Africa
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In first place is South Africa, with a GDP of $373.23 billion in 2024. The country’s economy primarily benefits from the finance, real estate, and business services industries, but also receives GDP from manufacturing, trade, and gas and water.
In 2022, South Africa will produce platinum ($19.1 billion), manganese ore ($2.96 billion), chromium ore ($2.51 billion), precious metal ore ($1.97 billion), and titanium ore ($656 million). ) became the world’s largest exporter.
Despite being in the top position, South Africa’s GDP has grown by only 0.8% annually since 2012, which is reflected in its high unemployment rate (33.5% in Q2 2024).
Post-pandemic, South Africa has returned to pre-COVID-19 GDP levels, but infrastructure bottlenecks and low productivity have slowed the pace. The country also has one of the highest levels of inequality in the world, with a poverty rate estimated at 62.3 percent.
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