Top 5 Rapidly Expanding African Economies

In this piece, we explore the top 5 rapidly expanding economies in Africa. For further insights into Africa's swiftly advancing economies, stay tuned.

5. Eswatini

Economic Expansion in 2021 as per World Bank: 7.43%

Located in Southern Africa, Eswatini is bordered by South Africa and Mozambique. Its economy is heavily intertwined with South Africa's, relying on it for approximately 85% of its import needs and 60% of its export revenue. In 2021, Eswatini experienced a significant economic revival, with its real GDP growth estimated to have surged to 7.4%, a substantial recovery from a 1.9% contraction in 2020. The easing of lockdown measures in 2021 played a crucial role in boosting its export-driven sectors, alongside a marked increase in external demand in its key export destinations.

4. Kenya

Economic Growth Rate in 2021 as reported by the World Bank: 7.52%

Kenya ranks next among Africa's most rapidly advancing economies. From 2015 to 2019, the nation enjoyed an average annual growth rate of 4.8%, significantly reducing poverty levels. The onset of the COVID-19 pandemic in 2020 heavily impacted the economy, disrupting sectors like travel, tourism, and urban services. Despite these challenges, the agricultural sector, a cornerstone of Kenya's economy, showed remarkable resilience, limiting the GDP's fall to just 0.3%. In 2021, Kenya's economic growth rebounded to 6.7%, primarily driven by private consumption and the services sector, both buoyed by supportive government policies and the easing of COVID-19 restrictions.

3. Rwanda

World Bank's Reported GDP Growth for 2021: 10.88%

Rwanda's economy experienced a downturn of 3.4% in 2020 due to the COVID-19 pandemic. However, a robust fiscal stimulus, swift vaccination efforts, gradual relaxation of COVID-19 measures, and a resurgence in global demand fueled a remarkable GDP growth of 10.9% in 2021. The sectors driving this growth included services (12%), industry (13%), and agriculture (6%). After a 5.9% contraction in 2020, the GDP per capita saw a significant recovery, growing by 7.4% in 2021. Projections for Rwanda's GDP growth stand at 6.9% for 2022 and an anticipated 7.9% for 2023.

2. Botswana

In 2021, Botswana experienced a remarkable economic rebound, with its GDP growing by 11.36%. This growth came after a challenging year in 2020, during which the country faced significant economic setbacks due to COVID-19 restrictions. Notably, the revival of the global diamond market played a crucial role in driving mining production upward. Additionally, industries beyond mining, such as public administration, military, construction, wholesale, and retail, also contributed to the positive trend. As the adverse effects of the pandemic on net exports waned and government spending increased, aggregate demand saw a boost in 2021.

1. Libya

In 2021, Libya’s economy experienced a remarkable turnaround, with its GDP growing by 31.37%.

This recovery followed a severe contraction of 23.93% in 2020, which was influenced by various factors, including political instability, plummeting oil prices, and the rapid spread of COVID-19. The significant increase in oil production played a crucial role in driving Libya’s economic resurgence.