• Saturday, April 20, 2024
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Top 10 poorest countries in Africa in 2024 – IMF

Top 10 poorest countries in Africa in 2024 – IMF

Smaller nations in challenging regions, like Liberia and Chad, struggle with limited resources, weak financial sectors, and unfavorable tax regimes, hindering foreign investments.

Larger countries, including the Democratic Republic of the Congo and Mozambique, still struggle with poverty due to internal conflicts, political instability, and inadequate infrastructure, hampering economic progress.

Despite widespread global affluence, some nations face enduring poverty, as indicated by their low Gross Domestic Product (GDP) per capita rankings.

GDP measures a country’s annual production of goods and services, but for a holistic view of prosperity, consider GDP per capita by dividing the GDP by the total population.

However, this may not offer a complete perspective due to variations in the cost of living and inflation rates. Then Purchasing Power Parity (PPP) factors in local costs and inflation rates for a more accurate comparison of living standards across nations.

Some countries might have artificially inflated GDPs due to being tax havens. GDP per capita PPP is a helpful tool to pinpoint the poorest countries in the world.

According to the International Monetary Fund (IMF), Here are the 10 poorest countries in Africa by GDP per capita (PPP) in Africa 2024 – IMF as of February 22.

South Sudan – GDP Per Capita: $492

South Sudan, the youngest country in Africa, faces severe economic challenges exacerbated by conflicts, political instability, and reliance on oil exports. The country’s economy is highly vulnerable to external shocks, making sustainable development a formidable task.

Burundi – GDP Per Capita: $936

Burundi has struggled with political unrest and economic difficulties. The country relies heavily on agriculture, and issues like land scarcity and political instability have hindered economic growth.

Central African Republic (CAR) – GDP Per Capita: $1138

CAR continues to face economic hardships due to political instability, armed conflicts, and a lack of infrastructure. The country’s economy heavily depends on agriculture, and efforts to diversify have been impeded by ongoing challenges.

Democratic Republic of the Congo (DRC) – GDP Per Capita: $1565

Despite being rich in natural resources, the DRC faces economic challenges arising from corruption, political instability, and inadequate infrastructure. Conflict minerals and weak governance contribute to the country’s economic struggles.

Mozambique – GDP Per Capita: $1653

Mozambique faces economic hurdles due to factors like high debt levels, natural disasters, and inadequate infrastructure. The country is working to attract foreign investment and diversify its economy beyond agriculture and mining.

Malawi – GDP Per Capita: $1712

Malawi, heavily dependent on agriculture, faces challenges such as food insecurity, limited access to education, and a lack of diversified industries. Efforts are being made to address these issues and promote sustainable economic growth.

Niger – GDP Per Capita: $1729

Niger confronts economic challenges such as a rapidly growing population, low literacy rates, and dependence on agriculture. Addressing issues related to education, healthcare, and infrastructure is crucial for sustainable development.

Chad – GDP Per Capita: $1863

Chad faces economic difficulties stemming from its dependence on oil exports, political instability, and security concerns. Diversification efforts are crucial for mitigating the impact of fluctuating oil prices and promoting economic resilience.

Liberia – GDP Per Capita: $1881

Liberia, recovering from years of civil war, faces economic challenges such as a weak infrastructure, limited access to education, and high unemployment rates. Sustainable development efforts focus on rebuilding institutions and fostering economic diversification.

Madagascar – GDP Per Capita: $1988

Madagascar struggles with economic challenges including political instability, deforestation, and inadequate infrastructure. Efforts are being made to promote ecotourism and sustainable resource management are vital for economic growth.