As Africa continues its path of economic growth, several cities are expected to lead with significant increases in Gross Domestic Product (GDP) by 2035. Based on the Compound Annual Growth Rate (CAGR) from 2023 to 2035.
According to the Economist Intelligence Unit report, “African cities 2035: Rapid urbanisation and economic expansion”
African cities are projected to see some of the highest population growth rates worldwide through 2035, with rapid urbanization occurring in the largest cities, clusters, and megalopolises the report highlighted.
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By 2035, Africa’s top 100 cities, including those with populations exceeding 1 million and smaller capitals, are expected to house about 21% of the continent’s population and contribute over 60% of its GDP.
Established urban centres like Cairo, Lagos, and Johannesburg will maintain their leading positions in the Africa100 city economies by 2035, with projected real GDP growth rates of 4-5% CAGR from 2023 to 2035.
Middleweight cities such as Kinshasa, Luanda, Nairobi, Yaoundé, Douala, Kano, Abuja, Dakar, and Kumasi will experience faster growth, with CAGRs of 6-8% in the same period.
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Meanwhile, cities including Dar es Salaam, Addis Ababa, Abidjan, and Kampala are expected to see even higher growth, approaching or exceeding double-digit CAGRs, and advancing rapidly in the city economy rankings.
Here are the top 10 African cities set for rapid economic growth by 2035
1. Addis Ababa
Addis Ababa, Ethiopia’s capital, is projected to see the highest growth with a CAGR of 10.6%. The city’s rapid economic expansion is driven by ongoing investments in infrastructure, industry, and services, which support its status as a regional economic hub.
2. Dar es Salaam
Tanzania’s largest city, Dar es Salaam, follows with a projected CAGR of 9.0%. This growth is attributed to its strategic port, which enhances trade and commerce, and its expanding industrial and manufacturing sectors.
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3. Abidjan
Ivory Coast’s economic capital, Abidjan, is expected to grow at a CAGR of 8.8%. The city benefits from its position as a major business and financial center in West Africa, along with investments in infrastructure and services.
4. Greater Cairo
Greater Cairo, encompassing Egypt’s capital, Cairo, shows a CAGR of 5.1%. As Egypt’s primary economic and political center, Cairo’s growth is supported by its diverse economy, including manufacturing, trade, and tourism.
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5. Alexandria
Another key Egyptian city, Alexandria, shares the same projected CAGR of 5.1% as Greater Cairo. Alexandria’s growth is fueled by its port activities and efforts to revitalize its historical trade and commerce sectors.
6. Cape Town
Cape Town, one of South Africa’s major cities, is set to grow at a CAGR of 5.0%. The city benefits from its role as a tourism hub and a growing service sector, which supports its economic expansion.
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7. Greater Johannesburg
With a CAGR of 5.0%, Greater Johannesburg also ranks among the top cities for GDP growth. Johannesburg’s economic activities, including finance, manufacturing, and services, contribute to its sustained growth.
8. Durban
Durban, another South African city, has a projected CAGR of 4.9%. The city’s growth is driven by its port activities and diverse industrial base, which play a crucial role in the regional economy.
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9. Lagos
Nigeria’s largest city, Lagos, is expected to grow at a CAGR of 4.7%. Lagos continues to expand its economic footprint through investments in infrastructure, technology, and financial services.
10. Casablanca
Casablanca, Morocco’s primary economic centre, has a projected CAGR of 4.4%. The city’s growth is supported by its strategic port, industrial base, and efforts to position itself as a financial and business hub in North Africa.
