• Tuesday, March 05, 2024
businessday logo

BusinessDay

Nigeria misses out as 10 African countries set for remarkable economic growth – IMF

How sustainability model can fuel Nigeria’s economic growth

Nigeria faces a concerning economic downturn with a projected growth rate of 3.0% in 2024, marking a slight decrease from the 3.1% recorded in 2023. This 0.1% contraction raises alarms about the potential challenges or headwinds impacting the nation’s economic stability.

Read also: Top 10 African countries with the lowest economic growth forecasts for 2024

Across Africa, economic growth is expected to modestly increase from an average of 3.3% in 2023 to 3.5% in 2024. However, global economic slowdown, stringent monetary and fiscal conditions, high debt sustainability risks, the unfolding climate crisis, extreme weather events, and ongoing geopolitical instability, particularly in the Sahel and North Africa, These factors continue to pose challenges to the region’s economic prospects.

Economic growth remains a potent remedy for poverty. As African countries pursue consistent expansion, they unlock opportunities for job creation, entrepreneurship, and higher incomes.

This in turn, directly improves living conditions, allowing for better access to education, healthcare, and essential utilities. Ultimately, it lays the foundation for citizens to lead more fulfilling lives.

Here are the 10 African countries set for remarkable economic growth

Mauritania

Mauritania with a forecasted economic growth rate of 6.7% in 2024, a substantial leap from the 4.2% recorded in 2023. This 2.5% increase signals a robust and expanding economy, driven by various factors such as increased investment, infrastructure development, and a thriving business environment.

Senegal

Senegal follows closely behind, projecting an impressive 9.2% economic growth rate in 2024. With a 2.4% differential from the previous year, Senegal’s economic trajectory reflects a nation on the cusp of significant development, buoyed by sectors like agriculture, manufacturing, and services.

South Sudan

Despite facing numerous challenges, South Sudan is expected to achieve a 2.5% economic growth rate in 2024, a notable improvement from the 0.6% recorded in 2023. The differential of 2.1% suggests efforts to stabilize the economy and capitalize on the nation’s vast natural resources.

Comoros

Comoros is positioned for sustainable growth with a projected economic growth rate of 3.6% in 2024, showcasing a 1.4% increase from the previous year. The nation’s strategic focus on sectors like tourism and agriculture is contributing to its positive economic outlook.

Uganda

Uganda is anticipated to experience robust economic expansion with a forecasted growth rate of 6.1% in 2024. The 1.2% differential from 2023 underscores the nation’s resilience and strategic economic policies that support key sectors such as agriculture, energy, and technology.

Gambia

Gambia is on a path of steady economic growth, projecting a 5.2% expansion in 2024. With a 1.0% differential from the previous year, the nation is making strides in sectors like tourism, services, and agriculture, fostering a positive economic environment.

Mozambique

Despite facing challenges such as natural disasters and economic uncertainties, Mozambique is forecasted to achieve a 5.2% economic growth rate in 2024. This 1.0% increase reflects the nation’s resilience and efforts to diversify its economy beyond traditional sectors.

Sao Tome and Principe

Sao Tome and Principe demonstrate a promising economic outlook, projecting a growth rate of 2.8% in 2024. The 1.0% differential from the previous year highlights the nation’s focus on sustainable development, attracting investments, and fostering economic stability.

Tanzania

Tanzania is set to build on its economic momentum, with a projected growth rate of 5.9% in 2024. The 0.9% differential from 2023 reflects the nation’s commitment to infrastructure development, industrialization, and a conducive business environment.

Malawi

Closing the list is Malawi, which is expected to experience a positive economic trajectory with a growth rate of 2.0% in 2024. The 0.9% differential from the previous year signifies the nation’s efforts to diversify its economy and attract foreign investments.