These ten countries have exhibited growth over the past year and have earned their spot as one of the fastest growing economies in Africa.
The COVID-19 virus sent the entire world into a spiral, and for two years life was at a standstill. Economies suffered immensely from the lack of activity beyond borders, new and old businesses crashed, and many people lost their livelihoods. However, with the administration of vaccines in Africa, many nations could open borders and resume trade.
The International Monetary Fund (IMF) has released its 2022 projections for Africa's gross domestic product (GDP) growth. Africa's overall GDP is projected to increase by 3.8% this year. In addition, sectors such as travel and tourism will rebound due to the easing of travel restrictions.
These ten countries exhibited growth over the past year and have earned their spot as one of the fastest-growing economies in Africa.
Due to the pandemic, Seychelles' economy took a knock as the tourism and fishery sectors suffered disruptions to supply chains and less external demand. However, as economic activity gears up again, the country's GDP will increase steadily. Seychelles' 2020 elections also strengthened investor confidence as a smooth transfer of power was a hallmark in the country's history.
GDP 2022: 7.7%
Trade including investment and exports, transportation, and tourism services were most affected by the global pandemic. The introduction of the African Continental Free Trade Area has boosted interregional trade.
GDP 2022: 7.0%
Mauritius's swift yet drastic lockdown and isolation response to COVID-19 impacted the economy negatively. The tourism and hospitality sector suffered a sharp decline, contributing about 24% of the GDP. However, the ease of restrictions has allowed these sectors to build up again.
GDP 2022: 6.7%
Niger's economy in the past two years saw a dip due to the health crisis, rising security issues including terrorist activity, and the closure of borders. As a result, the service and extractive industry sectors were affected, and consumption and foreign investments (from China and Europe) declined. However, the sharp increase in the GDP results from a boom in oil production.
GDP 2022: 6.6%
Benin's economy, driven by trade, transport, and agriculture, saw an increase to 4.8% in 2021 after the country stabilized the effects of COVID-19 by mid-year.
GDP 2022: 6.5%
6. Cabo Verde
To offset the impact of COVID-19, the government implemented fiscal and stimulus measures, which were unfortunately insufficient as the vital economic sectors like transport, tourism, construction, and retail trade, suffered a sharp decline. However, fewer global supply chain disruptions have ensured Cabo Verde's GDP is on the mend.
GDP 2022: 6.5%
7. South Sudan
The reopening of borders with Kenya and Uganda has helped recover South Sudan's economy severely affected by COVID-19 restrictions, locust invasions, and floods by facilitating imports and other essential resources.
8. Côte d'Ivoire
Growing from 6.2% in 2021, Côte d'Ivoire's implementation of the National Development Plan to maintain a stable socio-political environment and increase the mobilisation of local resources successfully increased the country's GDP by 0.3%. As a result, sectors including agriculture, construction, petroleum products, transport, and trade will drive up investments and consumption.
GDP 2022: 6.5%
Guinea's mining sector has been steadily carrying the GDP since the country displaced Australia as China's supplier of bauxite and aluminium. Moreover, Guinea's new mining projects have continued to increase exports.
GDP 2022: 6.3%
Recovery in the manufacturing and construction sectors has sustained Ghana's economy post-pandemic, including favourable cocoa and gold prices which have met the increasing demand. Furthermore, implementing the Ghana COVID-19 Alleviation and Revitalisation of Enterprise Support System has assisted businesses negatively affected by the pandemic.
GDP 2022: 6.2%