AFRICAN countries are poised to spearhead global economic growth in 2024, according to the latest report on Recent Economic and Social Developments in Africa by the Economic Commission for Africa (ECA). The report outlines that nations such as Niger, Senegal, Cote d’Ivoire, the Democratic Republic of the Congo (DRC), and Rwanda are expected to dominate the world’s top 10 highest-growing economies for the year.
Adam Elhiraika, Director of the Macroeconomics and Governance Division at ECA, underscored Africa’s remarkable growth trajectory, noting that the continent was the fastest-growing region in the developing world after East and South Asia in 2023. Elhiraika predicts this trend to persist in 2024 and 2025.
The report identifies Niger and Senegal as key drivers of economic expansion, with both countries projected to experience substantial growth, propelled by various factors. Niger’s growth is attributed to increased hydrocarbon production and exports, along with a revival in agricultural output. However, recent military coups and regional sanctions have posed challenges to economic activity in the country.
Senegal’s growth, on the other hand, is fuelled by burgeoning private and infrastructure projects. Yet, the nation faces potential short-term impacts on growth due to ongoing electoral processes across the continent, including the recently concluded presidential elections in Senegal.
‘Cote d’Ivoire, DRC, and Rwanda are experiencing robust expansion, driven by infrastructure investment, tourism development, mining sector performance, and economic diversification,’ Elhiraika elaborated.
In the DRC, growth is propelled by the extractive sector’s expansion, driven by the opening of new oilfields and advancements in agriculture, services, and mining. Rwanda’s growth is predominantly fuelled by private consumption and investment, while Cote d’Ivoire benefits from increased investment following market reforms and improvements in the business environment.
The report projects Africa’s economic growth to rise from 2.8 percent in 2023 to 3.5 percent in 2024, reaching 4.1 percent in 2025, driven by net exports, private consumption, and gross fixed investment.
Despite the positive outlook, Africa faces challenges such as unstable economic growth, rising debt, and social development concerns, including poverty, inequality, and unemployment. The report emphasises the need for major fiscal and monetary policy shifts to achieve Sustainable Development Goals (SDGs) and Agenda 2063 targets.
Key recommendations include revitalizing trade through initiatives like the African Continental Free Trade Area (AfCFTA), mobilising domestic resources for SDG achievement, implementing sustainable debt relief measures, and undertaking structural reforms to stimulate growth and resilience.
The report concludes by urging African countries to seize opportunities presented by global shifts, including renewable energy transition and the revitalised significance of critical minerals, to foster sustainable development and economic prosperity.