Sub-Saharan Africa is experiencing accelerated economic growth, with Ivory Coast and Tanzania leading the way, despite the underperformance of the region’s largest economies. Ivory Coast, the world’s largest cocoa producer, is expected to achieve impressive growth of 6.6%, while Tanzania is also projected to surpass 6% growth, according to the International Monetary Fund.
- In contrast, Nigeria’s growth is expected to be half that of Ivory Coast, and South Africa’s growth is projected to be less than 2%. These sluggish performances limit the overall economic performance of the continent, as Nigeria and South Africa account for a significant portion of Africa’s gross domestic product.
- However, there is hope for improvement. South Africa is taking measures to address its energy and logistics challenges, while Nigerian President Bola Tinubu is implementing necessary reforms to restructure the oil-dependent economy.
- Moreover, the continent is becoming less reliant on the two dominant economies as five of sub-Saharan Africa’s top 10 economies are expected to achieve growth rates exceeding 5%. Ethiopia’s sustained growth has allowed it to contribute nearly 10% to the region’s GDP.
- Despite the positive outlook, there are challenges to overcome. Some African nations, including Zambia, Ghana, and Ethiopia, have defaulted on their foreign liabilities, and access to international debt markets is limited. The impact of the Covid-19 pandemic and rising global interest rates has also left several countries heavily indebted.
- Nevertheless, with African nations constituting more than half of the world’s top-performing economies, this progress is worth celebrating amidst global unrest.