Five countries account for half of Africa’s total GDP, playing crucial roles in the continent’s economy – but where exactly are they?
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Made up of 53 countries with a total population exceeding 1.3 billion, Africa is the second largest continent on the planet. Despite its vast number of countries, only five make up almost half of its total GDP – a measure of the continent’s total value of goods and services that it produces. So where exactly are these five countries, and what do they produce?
5) Ethiopia
Ethiopia’s total GDP sits at $205.3 billion, and its economy is one of the fastest-growing in the world. Investing in public infrastructure and industrial activity, including manufacturing, is one of the reasons for its high growth. Projects include the Grand Renaissance Dam – the largest dam in Africa – which provides energy to Ethiopia as well as allowing the country to export electricity, and the first light rail system of its kind in the region.
Top exports from Ethiopia in 2022 include coffee ($1.55 billion), gold ($546M) and cut flowers ($255 million), mostly to the UAE, United States and Germany.
High and consistent economic growth over the last ten years has reduced poverty in urban and rural areas, with those living below the national poverty line decreasing from 30 per cent in 2011 to 24 per cent in 2016. However, despite making the top five, Ethiopia remains one of the poorest countries in the region, with a per capita gross national income of $1,020.
The Ethiopian government is well underway with its ten-year development plan – spanning from 2020 to 2030 – that hopes to sustain the high growth seen while it transitions to a more private-sector-driven economy.
4) Nigeria
Nigeria’s GDP is $252.74 billion, with the country’s economy diversified across a range of sectors. Its oil sector contributes around 14 per cent of the total GDP, with growth also attributed to non-oil sectors including financial services, telecommunications and entertainment.
The top exports of Nigeria in 2022 were crude petroleum ($52.1 billion), petroleum gas ($9.04 billion) and nitrogen fertilisers ($2 billion), exporting mainly to Spain, India and France.
Telephone lines in the country increased from 400,000 in 2001 to 140 million in 2015, along with the number of jobs within the sector leading to an increase of more than $25 billion to the economy. As a result, related sectors such as e-commerce and entertainment began to develop, including the Nigerian movie industry known as Nollywood. The sector generates almost $600 million each year and employs more than a million people, second only to the agricultural industry.
Limestone is also abundant in the country – used to make cement – so Nigeria has also become a net exporter of the mineral to countries across the world.
3) Algeria
In third is Algeria with a total GDP of $266.78 billion. Until 1962, the Algerian economy relied on agriculture, but has since shifted into its strong role within the oil and gas sector. Annually, petrol and natural gas contribute to one-third of the country’s GDP, with most exports to Italy, Spain and France. A record-high natural gas production in 2023 has also meant the country recently experienced a further uptick in its GDP of 4.1 per cent.
High global oil prices have meant Algeria can stabilise its economy as well as invest in infrastructure and social policies that can ease poverty in the country. Ensuring that the country diversifies its economy to exporting non-hydrocarbon products will ensure job prospects do not plummet.
The standards of living in the country are intermediately developed, but food production is far below self-sufficiency.
2) Egypt
Egypt’s total GDP sits at $347.59 billion, with its top exports as of 2022 including petroleum Gas ($9.53 billion), nitrogen fertilisers ($3.37 billion) and refined petroleum ($2.88 billion), mainly to Turkey, Italy and the United States.
In recent years, the country has funded mega projects using investment – in the hopes of further boosting its GDP – including expanding the Suez Canal, creating smart cities and constructing new roads and transport.
Egypt’s tourism sector is another major contributor to its economy, with the industry providing 24 per cent of total GDP.
However, the country has recently seen very high levels of inflation, coupled with foreign currency shortages. Proposed solutions to further consolidate its economy include better protection of property rights, strengthening the judicial system and effectively eradicating corruption.
1) South Africa
At number one is South Africa, with a GDP of $373.23 billion as of 2024. Its economy mainly benefits from finance, real estate and business service industries, but also receives GDP from manufacturing and trade as well as gas and water.
In 2022, South Africa was the world’s biggest exporter of 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).
Despite being top place, South Africa’s GDP has grown by only 0.8 per cent each year since 2012, reflected in its high levels of unemployment (33.5 per cent in the second quarter of 2024).
Post-pandemic, South Africa returned to its GDP levels before COVID, but this has been slower due to infrastructure bottlenecks and low productivity. Inequality in the country is also one of the highest in the world, with poverty estimated at 62.3 per cent.
