Despite the chest-beating statistics provided by the the Minister for Finance and Co-ordinating Minister for the Nigeria’s economy, her fellow Ministers as well as the National Bureau of Statistics (NBS) showing that the Nigerian economy has been growing in leaps and bounds over the last 12 months, it is the economies of Malawi, Mozambique, Angola, Ethiopia and Zambia that are expected to outperform that of others on the continent based on the projected GDP growth from 2012-2017 according to auditing firm Ernst & Young’s 2013 Competitive Survey.
Malawi tops the list with an expected GDP growth during this period of 7% and followed closely by Mozambique at 6.8% economic growth.
In the third place is Angola with the projected GDP growth of 6.5% in the next six years. Ethiopia’s GDP growth is expected to be 6.3% while Zambia is expected to grow its GDP by 6.2%.
Despite the negative impact of global economic crises, the size of the African economy has more than tripled since 2000, according to Ernst & Young. The continent also hold bright prospects, with many countries in Africa set to continue recording high economic growth levels in the future.
The cynics will more often than not opine that most of this economic growth is being driven by natural resources. But that is certainly not the case.
According to the International Business Times website, the number of Africans living in the cities has surged dramatically and it could soon surpass that of India, which is considered to be the leader at this stage. It is believed that in the next 16 years, half of all Africans will be living in the cities. It is also understood that Africa’s middle class is set to be bigger than that of India.
The market influences of the west, which Africa is increasingly approving, are pushing down inflation and reducing sovereign debt.
Intra-African trade is changing on the continent with Africa boasting five growing trade blocs. In total, Africa has a $2 trillion economy, according to the International Business Times.
Listed below are the top performing economies in Africa.
Angola’s economy bounced back robustly after recording sluggish growth due to oil and financial crises. The Report forecast growth in Angola to rise to 8.2% in 2013 and 7.8% in 2014 on the back of oil and gas sector expansion. There is also a public expenditure programme made to inspire economic diversification.
Ethiopia’s economy saw a ninth successive year of vigorous growth last year estimated at 6.9%, the African Economic Outlook states. The growth was driven by a surging role for services and industry. This motion is set to stay until next year.
According to the African Economic Outlook, Malawi’s economic growth in 2013 and next year is forecast to bounce back to 5.5% and 6.1% respectively. The state has renewed its commitment to credible macroeconomic policies. Good governance has prompted the International Monetary Fund (IMF) to approve a new Enhanced Credit Facility (ECF) programme for the country. This has led to the reopening of donor financial back-up to Malawi.
Mozambique’s steady ramping up of coal production, the implementation of large infrastructure projects and credit expansion are expected to continue to drive growth to 8.5% in 2013 and 8% in 2014, according to the African Economic Outlook. The World Bank says the country’s emerging extractive industry could also provide the means for Mozambique to reach the status of a middle-income country by 2025.
Growth in real GDP moved faster to 7.3% last year from 6.8% posted in 2011. In the next 24 months, economic growth in Zambia is forecast to stay strong. In 2012, the economy continued to be strong driven by expansion in agriculture, construction, manufacturing, transport and finance. According to the African Economic Outlook, prospects for the future of the country remain bright.