Nigeria has maintained its position as the largest economy in Africa for the fifth consecutive year, with a nominal GDP of $477.4 billion in 2022, according to data released by the World Bank. The country’s economy grew by 8.3% year-on-year, solidifying its status as the “giant of Africa” and accounting for 17.4% of the continent’s economy, which amounted to $2.7 trillion in the same year.
Egypt is closely catching up with Nigeria, with a GDP estimate of $476.7 billion, growing by 12.3% in 2022. Meanwhile, South Africa ranks third with an estimated GDP of $405.9 billion. Together, the top three economies represent nearly half (49.5%) of the African continent’s total GDP.
In terms of the fastest-growing economies, Angola leads the pack with an impressive growth rate of 62.5%, attributing it to sustained high oil prices. Sudan and Zambia follow with growth rates of 50.9% and 34.5%, respectively.
On the contrary, Zimbabwe experienced the highest contraction of 27.1%, while Ghana and Sierra Leone also faced economic challenges with 8% and 6.6% contractions, respectively.
Despite the various headwinds, Africa’s economy expanded by 3.8% in 2022, reaching $2.7 trillion, a testament to its resilience amid global shocks. The African Development Bank predicts that the continent will become the second-fastest growing region globally in 2023, with a projected GDP growth rate of 4.3% in 2024. However, achieving this growth hinges on robust policy actions, including promoting green industries and supporting private sector investments in managing natural capital across the continent.
