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Which are Africa’s fastest growing economies?

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Which are Africa’s fastest growing economies?

Which are Africa’s fastest growing economies?
Photo credit: Reuters | Luc Gnago

Ivory Coast is Africa’s fastest growing economy, according to the IMF’s latest World Economic Outlook. The West African nation’s GDP is expected to grow by 8.5% this year. 

The Ivory Coast’s economy has benefited from government policies and structural reforms, which have resulted in strong inclusive growth, according to the World Bank. Strong economic activity has been maintained through a strong aggregate demand and increases in investment, both public and private.

Following in second place is Tanzania, with projected growth of just under 7% this year. Senegal completes the top three, with 6.6%. Countries from across Africa feature in the top 10, emphasizing the economic gains being felt around the continent.

Africas fastest growing economies WEF April 2016

As this map from the IMF highlights, compared with much of the developed world, economic growth is relatively high in Africa. GDP in many African countries is projected to grow by over 2% this year. 

Real GDP growth 2016 WEF April 2016

However, ahead of the World Economic Forum on Africa, it is important to recognize the challenges that many African economies face – the commodities slump, currency devaluations and geo-security risks all threaten growth. 

The Forum will highlight the need for diversification in order to ensure inclusive economic growth. The Fourth Industrial Revolution has the potential to create new industries and help reduce inequality across the continent. By implementing reforms and establishing partnerships, African nations can take advantage of these rapid technological advances.


World Economic Forum on Africa 2016

Meeting Overview: 11-13 May, Kigali, Rwanda

Africa’s positive economic outlook is under pressure – mainly due to adverse changes in the global economy – and is expected to remain just below 5% in 2016. As many countries in the region improve their investment climate and undertake macroeconomic policy reforms, foreign direct investment flows are expected to continue to grow, although at a slower pace.

Low global prices for major commodity exports, currency devaluations and debt sustainability considerations, as well as geosecurity threats that have weakened growth in some countries underscore the urgent need for economic diversification for sustained inclusive growth. In this context, Africa’s leaders need to pursue new approaches to ignite structural transformation, particularly in the face of rapid technological changes that have the potential to create new industries and reduce inequality.

Rwanda, the land of a thousand hills, has dramatically transformed since the 1994 genocide. The country is emerging as a regional high-tech hub and boasts one of sub-Saharan Africa’s fastest GDP growth rates. It is one of the continent’s most competitive economies and a top reformer in improving the business environment. This remarkable progress showcases the country’s rapid evolution as a knowledge economy, powered by smart policies and investments. Nonetheless, further reforms and alliances are called for to accelerate development by leveraging digital transformation to expand socio-economic opportunities.

Under the theme, Connecting Africa’s Resources through Digital Transformation, the 26th World Economic Forum on Africa will convene regional and global leaders from business, government and civil society to discuss digital economy catalysts that can drive radical structural transformation, strengthen public-private collaboration on key global and regional challenges, and agree on strategic actions that can deliver shared prosperity across the continent.

Programme Objectives

There is widespread agreement that Africa needs to craft new approaches to trigger structural transformation. According to the Africa Competitiveness Report 2015, services are playing an increasingly important role in African economies; yet the share and value of services in regional and global trade are very low. In today’s increasingly connected world, with internet penetration at 26%, an integrated digital transformation strategy for Africa is imperative. Thus, the 26th World Economic Forum on Africa will address the following main sub-themes:

i) Governance & Institutions

  • Many countries in Africa have fully liberalized their ICT markets and are reaping the benefits in increased investments and use. How will ICT drive Africa’s digital transformation?

  • Informal employment forms the largest proportion of employment opportunities, about 77% in 2012, despite inadequate working conditions and social protection regimes. How is e-government transforming service delivery in the informal sector?

  • Regional trade agreements are becoming more complex, particularly in light of negotiations of new mega-regional trade agreements that could lead to a $2.7 billion loss of Africa’s exports. What is the future of regional trade agreements in the world trading system?

  • More than 500 million smallholder farmers in Africa are still dependent on rain-fed agriculture. How can climate-smart food systems transform their lives?

  • In 2015 only 11 African countries offer liberal visas access to all African citizens. What visa innovations can facilitate the movement of people within the continent? Foreign direct investment flows into Africa have remained stable at $54 billion; this fell 16% globally. How can Africa’s leaders reduce the risk perception and attract higher investment?

ii) Finance & Growth

  • About 20% of African households have access to formal or semi-formal finance. How is technology transforming Africa’s financial services industry?

  • Africa is home to nine of the world’s 15 fastest growing economies and is an increasingly attractive environment for global business investments. How will the continent continue to grow in the face of a slowing global economy?

  • By 2040, renewables can provide more than 40% of all power-generation capacity in the region. How can smart grid solutions enhance investments in renewable energy?

  • External sources of financing have increased from $5 billion in 2003 to $30 billion a year in 2012, leaving a financing gap of $50 billion to fill. How can innovative partnerships bridge mega infrastructure financing gaps?

  • Smart mining, the integration of ICT solutions in the entire supply chain of the mining industry, is projected to reach $13 billion by 2020, up from $5.12 billion in 2013. What technologies are transforming the mining industry in Africa?

  • Factory activity accounted for 10% of Africa’s GDP over the past decade. Manufacturing is widely considered to be the ideal industry to drive Africa’s development due to the labour-intensive, export-focused nature of the business. How is distributed manufacturing transforming production and competitiveness?

iii) Human Development & Entrepreneurship

  • Education policy can accelerate literacy and digital skills training in primary, secondary and tertiary education. What digital platforms are accelerating skills development?

  • Africa has one of the highest mobile phone penetrations in the world. How are mobile health technologies transforming healthcare?

  • According to UNCTAD, global creative services are growing significantly, yet Africa contributes only about 1%. How is the wireless revolution transforming African creative services?

  • The potential annual economic losses due to gender gaps in labour participation are estimated at $255 billion in sub-Saharan Africa. What innovations are bridging the science gender gap?

  • Young consumers are driving offline sales through online traffic and the potential is increasing as Africa’s middle-class consumers will grow from about 355 million people to 1.1 billion over the next three decades. How is digital disruption changing the retail landscape in Africa?

  • About 40% of Africans live in urban settlements and traffic congestion and dwindling access to water and sanitation are growing. How can smart cities improve water and transport management?

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