As 2024 unfolds, financial institutions have unveiled their forecasts for the African continent in the upcoming fiscal year. Aligned with expert predictions, a 4.2% growth outlook for the general perspective of the African continent has been presented by the International Monetary Fund (IMF). The catalysts for this acceleration in gross domestic product (GDP) are anticipated to be private consumption and investment, driving growth for around 80% of countries by 2024.

Contrasting the 3.9% growth rate witnessed in the continental economy throughout 2022, 2023 saw a dip to 3.6%. Contributing factors to this performance decline include the central bank’s interest rate hikes against global inflation and the far-reaching impact of the war in Ukraine on global commercial activity, exposing intercontinental trade vulnerabilities.

Economic expansions are projected to commence primarily in countries endowed with abundant natural resources and robust production capabilities. Notably, 21 nations, including Ivory Coast, Kenya, Uganda, and Mozambique, categorized as moderate in terms of natural resources and industrialization, are expected to achieve a 6.2% economic growth throughout 2024, surpassing the average growth figure. Senegal, situated on the farthest point of West Africa and surrounded by Venezuela, Brazil, and Suriname on its opposite shore, is poised for a significant growth increase of 10.6% in 2024, attributed to the forthcoming natural gas project.

Despite optimistic outlooks, certain nations anticipate a downturn in growth figures for 2024. Key oil-exporting countries like Angola, Nigeria, South Sudan, and Equatorial Guinea are expected to be impacted by the projected decrease in oil prices and the depreciation of their currencies.

Analysts emphasize that the region’s future growth hinges on the realization of three global factors. A post-Ukraine war global economic recovery is anticipated to enhance export opportunities and reduce import expenditures, assuming a swift resolution of the current situation in the Suez Canal. Additionally, a forecasted decrease in global inflation for 2024 is expected to prompt major central banks to ease monetary policy, alleviating pressure on exchange rates in sub-Saharan Africa. A projected 6% decline in crude oil prices for 2024 is poised to positively influence growth, particularly benefiting net fuel-importing countries that contribute two-thirds to the region’s GDP.

To gain a better understanding of the economic landscape, attention will be directed towards the GDP per capita of leading African nations:

• Botswana, heavily reliant on tourism, natural resources, and agriculture, anticipates a GDP per capita of $7,539 in 2024.
• South Africa, characterized by a diverse economy encompassing mining, agriculture, and services, expects a GDP per capita of $6,121.
• Egypt, with a multifaceted economy including tourism, oil and gas, and agriculture, foresees a GDP per capita of $4,693.
• Morocco, boasting sectors like tourism, agriculture, industry, and services, projects a GDP per capita of $3,526.
• Angola, heavily dependent on oil and natural resources, estimates a GDP per capita of $2,452.
• Ghana, with a foundation in agriculture, petroleum, and services, anticipates a GDP per capita of $2,241.
• Kenya, a regional economic powerhouse with a diverse economy, forecasts a GDP per capita of $1,953.
• Ethiopia, experiencing economic growth driven by advancements in agriculture, manufacturing, and infrastructure, expects a GDP per capita of $1,787.
• Senegal, predominantly reliant on natural resources, agriculture, and the production sector, foresees a GDP per capita of $1,773.
• Nigeria, with significant involvement in the oil and gas sectors, projects a GDP per capita of $1,734.
• Tanzania, thriving on agriculture, tourism, and natural resources, estimates a GDP per capita of $1,241.
• Rwanda, primarily based on agriculture and tourism, with recent strides in industrial development, predicts a GDP per capita of $1,064.

Consistently, the refrain echoes that Africa is emerging as a key player in the global business arena. The continent’s attracting investments are poised to impact its gross national income, fostering greater prosperity and improved living standards. Increased investment coupled with responsible natural resource utilization has propelled a noteworthy 75% increase in the Gross Domestic Product within seven years, paving the way for optimistic projections about Africa’s income levels by 2050.