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African economies: 2020 outlook

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2020 will see some of the fastest-growing economies within African countries.

The IMF, World Bank are expecting the GDP growth on the rise for the high-fliers: South Sudan – 8.2%, Rwanda – 8.1%, Côte d’Ivoire – 7.3%, Ethiopia – 7.2%, Senegal – 6.8%, Benin – 6.7% and Uganda – 6.2% together with Kenya, Mozambique, Niger and Burkina Faso all at estimated 6% growth.

While the top-listers help Africa move up the overall average economic growth rate forecast to 3.8% (or 3.6% for Sub Saharan Africa), these figures are weighed down closer to the world average (3.4%) by the two largest economies, Nigeria (2.5%) and South Africa (1.1%).

Above all, the analysts say a $16 billion opportunity is looming ahead if African countries fully implement the African Continental Free Tree Agreement (AfCFTA). With the liberalisation of tariffs across the countries under the agreement, the continent’s overall GDP would go up to $3 trillion by 2030 from $2.1 trillion. If implemented, there would be a 33% increase in intra-African exports and 1.2% improvement in employment.

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