The economy of Africa consists of the trade, industry, agriculture, and human resources of

the continent. As of 2019, approximately 1.3 billion people[1] were living in 54 different countries in
Africa. Africa is a resource-rich continent. [3][4] Recent growth has been due to growth in sales in
commodities, services, and manufacturing. [5]West Africa, East Africa, Central Africa and Southern
Africa in particular, are expected to reach a combined GDP of $29 trillion by 2050. [6]
In March 2013, Africa was identified as the world's poorest inhabited continent: Africa's entire
combined GDP is barely a third of the United States' GDP; however, the World Bank expects that
most African countries will reach "middle income" status (defined as at least US$1,000 per person a
year) by 2025 if current growth rates continue. [7] In 2013, Africa was the world’s fastest-growing
continent at 5.6% a year, and GDP is expected to rise by an average of over 6% a year between
2013 and 2023.[3][8] In 2017, the African Development Bank reported Africa to be the world’s second-
fastest growing economy, and estimates that average growth will rebound to 3.4% in 2017, while
growth is expected to increase by 4.3% in 2018. [9]
Growth has been present throughout the continent, with over one-third of African countries posting
6% or higher growth rates, and another 40% growing between 4% to 6% per year. [3] Several
international business observers have also named Africa as the future economic growth engine of
the world.[10]

History
Further information: Economic history of Africa and Scramble for Africa

Ancient Egyptian units of measurement also served as units of currency.

Africa's economy was diverse, driven by extensive trade routes that developed between cities and
kingdoms. Some trade routes were overland, some involved navigating rivers, still others developed
around port cities. Large African empires became wealthy due to their trade networks, for
example Ancient Egypt, Nubia, Mali, Ashanti, and the Oyo Empire.
The Sultanate of Mogadishu's medieval currency.

Some parts of Africa had close trade relationships with Arab kingdoms, and by the time of
the Ottoman Empire, Africans had begun converting to Islam in large numbers. This development,
along with the economic potential in finding a trade route to the Indian Ocean, brought the
Portuguese to sub-Saharan Africa as an imperial force. Colonial interests created new industries to
feed European appetites for goods such as palm oil, rubber, cotton, precious metals, spices, cash
crops other goods, and integrated especially the coastal areas with the Atlantic economy. [11]
Following the independence of African countries during the 20th century, economic, political and
social upheaval consumed much of the continent. An economic rebound among some countries has
been evident in recent years, however.
The dawn of the African economic boom (which is in place since the 2000s) has been compared to
the Chinese economic boom that had emerged in Asia since late 1970's.[12] In 2013, Africa was home
to seven of the world's fastest-growing economies. [13]
As of 2018, Nigeria is the biggest economy in terms of nominal GDP, followed by South Africa; in
terms of PPP, Egypt is second biggest after Nigeria. [14] Equatorial Guinea possessed Africa's highest
GDP per capita albeit allegations of human rights violations. Oil-rich countries such
as Algeria, Libya and Gabon, and mineral-rich Botswana emerged among the top economies since
the 21st century, while Zimbabwe and the Democratic Republic of Congo, potentially among the
world's richest nations, have sunk into the list of the world's poorest nations due to pervasive political
corruption, warfare and braindrain of workforce. Botswana remains the site of Africa's longest and
one of the world's longest periods of economic boom (1966–1999).

Current conditions[edit]
The National Cement Share Company of Ethiopia's new plant in Dire Dawa

The United Nations predicts Africa’s economic growth will reach 3.5% in 2018 and 3.7% in 2019. [15]As
of 2007, growth in Africa had surpassed that of East Asia. Data suggest parts of the continent are
now experiencing fast growth, thanks to their resources and increasing political stability and 'has
steadily increased levels of peacefulness since 2007'. The World Bank reports the economy of Sub-
Saharan African countries grew at rates that match or surpass global rates. [16][17] According to
the United Nations Department of Economic and Social Affairs, the improvement in the region’s
aggregate growth is largely attributable to a recovery in Egypt, Nigeria and South Africa, three of
Africa’s largest economies.[15]
The economies of the fastest growing African nations experienced growth significantly above the
global average rates. The top nations in 2007 include Mauritania with growth at 19.8%, Angola at
17.6%, Sudan at 9.6%, Mozambique at 7.9% and Malawi at 7.8%.[18] Other fast growers
include Rwanda, Mozambique, Chad, Niger, Burkina Faso, Ethiopia. Nonetheless, growth has been
dismal, negative or sluggish in many parts of Africa including Zimbabwe, the Democratic Republic of
the Congo, the Republic of the Congo and Burundi. Many international agencies are increasingly
interested in investing in emerging African economies. [19] especially as Africa continues to maintain
high economic growth despite current global economic recession.[20] The rate of return on investment
in Africa is currently the highest in the developing world. [21]
Debt relief is being addressed by some international institutions in the interests of supporting
economic development in Africa. In 1996, the UN sponsored the Heavily Indebted Poor
Countries (HIPC) initiative, subsequently taken up by the IMF, World Bank and the African
Development Fund (AfDF) in the form of the Multilateral Debt Relief Initiative (MDRI). As of 2013, the
initiative has given partial debt relief to 30 African countries. [22]

Trade growth[edit]
Trade has driven much of the growth in Africa's economy in the early 21st century. China and India
are increasingly important trade partners; 12.5% of Africa's exports are to China, and 4% are to
India, which accounts for 5% of China's imports and 8% of India's. The Group of Five (Indonesia,
Malaysia, Saudi Arabia, Thailand, and the United Arab Emirates) are another increasingly important
market for Africa's exports.[23]
Future[edit]

A mobile phone advertisement on the side of a van, Kampala, Uganda.

Africa's economy—with expanding trade, English language skills (official in many Sub-Saharan
countries), improving literacy and education, availability of splendid resources and cheaper labour
force—is expected to continue to perform better into the future. Trade between Africa and China
stood at US$166 billion in 2011.[24]
Africa will only experience a "demographic dividend" by 2035, when its young and growing labour
force will have fewer children and retired people as dependents as a proportion of the population,
making it more demographically comparable to the US and Europe. [25] It is becoming a more
educated labour force, with nearly half expected to have some secondary-level education by 2020. A
consumer class is also emerging in Africa and is expected to keep booming. Africa has around 90
million people with household incomes exceeding $5,000, meaning that they can direct more than
half of their income towards discretionary spending rather than necessities. This number could reach
a projected 128 million by 2020.[25]
During the President of the United States Barack Obama's visit to Africa in July 2013, he announced
a US$7 billion plan to further develop infrastructure and work more intensively with African heads of
state. A new program named Trade Africa, designed to boost trade within the continent as well as
between Africa and the U.S., was also unveiled by Obama. [26]
With the introduction of the new economic growth and development plan introduced by the African
Union members pricely about 27 of it members who are averagely some of the most developinmm
economies of the continent it will further boost economic social and political integrations of the
continent. The African Continental Free Trade Agreement (AfCFTA) will boost business activities
between member states and within the continent. This will further reduce too much reliance on
importation of finished products and raw materials in to the continent.

Causes of the economic underdevelopment over

the years[edit]
The seemingly intractable nature of Africa's poverty has led to debate concerning its root
causes. Endemic warfare and unrest, widespread corruption, and despotic regimes are both causes
and effects of the continued economic problems. The decolonization of Africa was fraught with
instability aggravated by cold war conflict. Since the mid-20th century, the Cold War and
increased corruption and despotism have also contributed to Africa's poor economy.
Infrastructure[edit]

The Trans-African Highway network

According to the researchers at the Overseas Development Institute, the lack of infrastructure in
many developing countries represents one of the most significant limitations to economic growth and
achievement of the Millennium Development Goals (MDGs).[27] Infrastructure investments and
maintenance can be very expensive, especially in such areas as landlocked, rural and sparsely
populated countries in Africa.[27]
It has been argued that infrastructure investments contributed to more than half of Africa's improved
growth performance between 1990 and 2005 and increased investment is necessary to maintain
growth and tackle poverty.[27] The returns to investment in infrastructure are very significant, with on
average 30–40% returns for telecommunications (ICT) investments, over 40%
for electricity generation, and 80% for roads.[27]
In Africa, it is argued that to meet the MDGs by 2015, infrastructure investments would need to reach
about 15% of GDP (around $93 billion a year).[27] Currently, the source of financing varies significantly
across sectors.[27] Some sectors are dominated by state spending, others by overseas development
aid(ODA) and yet others by private investors.[27] In sub-Saharan Africa, the state spends around $9.4
billion out of a total of $24.9 billion. [27]
In irrigation, SSA states represent almost all spending; in transport and energy a majority of
investment is state spending; in Information and communication technologies and water supply and
sanitation, the private sector represents the majority of capital expenditure. [27] Overall, aid, the private
sector and non-OECD financiers between them exceed state spending. [27] The private sector
spending alone equals state capital expenditure, though the majority is focused on ICT infrastructure
investments.[27] External financing increased from $7 billion (2002) to $27 billion (2009). China, in
particular, has emerged as an important investor.[27]

Colonialism[edit]
Main article: Colonisation of Africa
Railway map of Africa, including tracks proposed and under construction, The Statesman's Yearbook, 1899.

The economic impact of the colonization of Africa has been debated. In this matter, the opinions are
biased between researchers, some of them consider that Europeans had a positive impact on Africa;
others affirm that Africa's development was slowed down by colonial rule. [28] The principal aim of
colonial rule in Africa by European colonial powers was to exploit natural wealth in the African
continent at a low cost. Some writers, such as Walter Rodney in his book How Europe
Underdeveloped Africa, argue that these colonial policies are directly responsible for many of Africa's
modern problems. Critics of colonialism charge colonial rule with injuring African pride, self-worth
and belief in themselves. Other post-colonial scholars, most notably Frantz Fanon continuing along
this line, have argued that the true effects of colonialism are psychological and that domination by a
foreign power creates a lasting sense of inferiority and subjugation that creates a barrier to growth
and innovation. Such arguments posit that a new generation of Africans free of colonial thought and
mindset is emerging and that this is driving economic transformation. [29]
Historians L. H. Gann and Peter Duignan have argued that Africa probably benefited from
colonialism on balance. Although it had its faults, colonialism was probably "one of the most
efficacious engines for cultural diffusion in world history". [30] These views, however, are controversial
and are rejected by some who, on balance, see colonialism as bad. The economic historian David
Kenneth Fieldhouse has taken a kind of middle position, arguing that the effects of colonialism were
actually limited and their main weakness wasn't in deliberate underdevelopment but in what it failed
to do.[31] Niall Ferguson agrees with his last point, arguing that colonialism's main weaknesses
were sins of omission.[32] Analysis of the economies of African states finds that independent states
such as Liberia and Ethiopia did not have better economic performance than their post-colonial
counterparts. In particular the economic performance of former British colonies was better than both
independent states and former French colonies.[33]
Africa's relative poverty predates colonialism. Jared Diamond argues in Guns, Germs, and Steel that
Africa has always been poor due to a number of ecological factors affecting historical development.
These factors include low population density, lack of domesticated livestock and plants and the
North-South orientation of Africa's geography.[34] However Diamond's theories have been criticized by
some including James Morris Blaut as a form of environmental determinism.[35] Historian John K.
Thornton argues that sub-Saharan Africa was relatively wealthy and technologically advanced until
at least the seventeenth century.[36] Some scholars who believe that Africa was generally poorer than
the rest of the world throughout its history make exceptions for certain parts of Africa. Acemoglue
and Robinson, for example, argue that most of Africa has always been relatively poor, but "Aksum,
Ghana, Songhay, Mali, [and] Great Zimbabwe... were probably as developed as their
contemporaries anywhere in the world."[37] A number of people including Rodney and Joseph E.
Inikori have argued that the poverty of Africa at the onset of the colonial period was principally due to
the demographic loss associated with the slave trade as well as other related societal shifts.
[38]
Others such as J. D. Fage and David Eltis have rejected this view.[39]

Language diversity[edit]

A randomly selected pair of people in Ghana has only an 8.1% chance of sharing a mother tongue.

African countries suffer from communication difficulties caused by language diversity. Greenberg's
diversity index is the chance that two randomly selected people would have different mother
tongues. Out of the most diverse 25 countries according to this index, 18 (72%) are African. [40] This
includes 12 countries for which Greenberg's diversity index exceeds 0.9, meaning that a pair of
randomly selected people will have less than 10% chance of having the same mother tongue.
However, the primary language of government, political debate, academic discourse, and
administration is often the language of the former colonial powers; English, French, or Portuguese.

Trade based theories[edit]

Dependency theory asserts that the wealth and prosperity of the superpowers and their allies
in Europe, North Americaand East Asia is dependent upon the poverty of the rest of the world,
including Africa. Economists who subscribe to this theory believe that poorer regions must break
their trading ties with the developed world in order to prosper. [41]
Less radical theories suggest that economic protectionism in developed countries hampers Africa's
growth. When developing countries have harvested agricultural produce at low cost, they generally
do not export as much as would be expected. Abundant farm subsidies and high import tariffs in the
developed world, most notably those set by Japan, the European Union's Common Agricultural
Policy, and the United States Department of Agriculture, are thought to be the cause. Although these
subsidies and tariffs have been gradually reduced, they remain high.
Local conditions also affect exports; state over-regulation in several African nations can prevent their
own exports from becoming competitive. Research in Public Choice economics such as that of Jane
Shaw suggest that protectionism operates in tandem with heavy State intervention combining to
depress economic development. Farmers subject to import and export restrictions cater to localized
markets, exposing them to higher market volatility and fewer opportunities. When subject to
uncertain market conditions, farmers press for governmental intervention to suppress competition in
their markets, resulting in competition being driven out of the market. As competition is driven out of
the market, farmers innovate less and grow less food further undermining economic performance. [42]
[43]
Governance[edit]
Political corruption

Concepts

 Bribery
 Cronyism
 Kleptocracy
 Economics of corruption
 Electoral fraud
 Nepotism
 Slush fund
 Political scandal
 Simony

Corruption by country

Africa

 Angola
 Botswana
 Cameroon
 Congo
 Egypt
 Equatorial Guinea
 Eritrea
 Ethiopia
 Ghana
 Guinea-Bissau
 Kenya
 Liberia
 Mauritius
 Morocco
 Nigeria
 Senegal
 Somalia
 South Africa
 South Sudan
 Sudan
  Tanzania
 Tunisia
 Uganda
 Zambia
 Zimbabwe

Asia

 Afghanistan
 Armenia
 Azerbaijan
 Bahrain
 Bangladesh
 Cambodia
 China
 Cyprus
 Georgia
 India
 Indonesia
 Iran
 Iraq
 Israel
 Jordan
 Kuwait
 Kyrgyzstan
 Malaysia
 Myanmar
 North Korea
 Pakistan
 Philippines
 Singapore
 South Korea
 Sri Lanka
 Tajikistan
 Thailand
 Turkey
 Turkmenistan
 Uzbekistan
  Vietnam
 Yemen

Europe

 Albania
 Austria
 Belgium
 Bosnia
 Bulgaria
 Croatia
 Czech Republic
 Denmark
 Finland
 France
 Germany
 Greece
 Iceland
 Ireland
 Italy
 Kosovo
 Latvia
 Lithuania
 Luxembourg
 North Macedonia
 Moldova
 Montenegro
 Netherlands
 Poland
 Portugal
 Romania
 Russia
 Serbia
 Slovakia
 Slovenia
 Spain
 Sweden
 Switzerland
  Ukraine
 Vatican City

North America

 Canada
 Cuba
 Haiti
 Mexico
 Nicaragua
 United States

Oceania

 Australia
 New Zealand
 Papua New Guinea

South America

 Argentina
 Bolivia
 Brazil
 Chile
 Colombia
 Ecuador
 Paraguay
 Peru
 Venezuela

 v
 t
 e

Although Africa and Asia had similar levels of income in the 1960s, Asia has since outpaced Africa,
with the exception of a few extremely poor and war-torn countries like Afghanistan and Yemen. One
school of economists argues that Asia's superior economic development lies in local investment.
Corruption in Africa consists primarily of extracting economic rentand moving the resulting financial
capital overseas instead of investing at home; the stereotype of African dictators with Swiss bank
accounts is often accurate. University of Massachusetts Amherst researchers estimate that from
1970 to 1996, capital flight from 30 sub-Saharan countries totalled $187bn, exceeding those nations'
external debts.[44] Authors Leonce Ndikumana and James K. Boyce estimate that from 1970 to 2008,
capital flight from 33 sub-Saharan countries totalled $700bn. [45] This disparity in development is
consistent with the model theorized by economist Mancur Olson. Because governments were
politically unstable and new governments often confiscated their predecessors' assets, officials
would stash their wealth abroad, out of reach of any future expropriation.
Congolese dictator Mobutu Sese Seko became notorious for corruption, nepotism, and
the embezzlement of between US$4 billion and $15 billion during his reign.[46]
[47]
Socialist governments influenced by Marxism, and the land reform they have enacted, have also
contributed to economic stagnation in Africa. For example, the regime of Robert
Mugabe in Zimbabwe, particularly the land seizures from white farmers, led to the collapse of the
country's agricultural economy, which had formerly been one of Africa's strongest; [48] Mugabe had
been previously supported by the USSR and Chinaduring the Zimbabwe War of Liberation.
In Tanzania, socialist President Julius Nyerere resigned in 1985 after his policies of agricultural
collectivisation in 1971 led to economic collapse, with famine only being averted by generous aid
from the IMF and other foreign entities.[49] Tanzania was left as one of the world's poorest and most
aid-dependent nations, and has taken decades to recover. [50] Since the abolition of the socialist one-
party state in 1992 and the transition to democracy, Tanzania has experienced rapid economic
growth, with growth of 6.5% in 2017.[51]

Foreign aid[edit]
Food shipments in case of dire local shortage are generally uncontroversial; but as Amartya Sen has
shown, most famines involve a local lack of income rather than of food. In such situations, food aid—
as opposed to financial aid—has the effect of destroying local agriculture and serves mainly to
benefit Western agribusiness which are vastly overproducing food as a result of agricultural
subsidies.
Historically, food aid is more highly correlated with excess supply in Western countries than with the
needs of developing countries. Foreign aid has been an integral part of African economic
development since the 1980s.[5]
The aid model has been criticized for supplanting trade initiatives. [5] Growing evidence shows that
foreign aid has made the continent poorer. [52] One of the biggest critics of the aid development model
is economist Dambisa Moyo (a Zambian economist based in the US), who introduced the Dead
Aid model, which highlights how foreign aid has been a deterrent for local development. [53]
Today, Africa faces the problem of attracting foreign aid in areas where there is potential for high
income from demand. It is in need of more economic policies and active participation in the world
economy. As globalization has heightened the competition for foreign aid among developing
countries, Africa has been trying to improve its struggle to receive foreign aid by taking more
responsibility at the regional and international level. In addition, Africa has created the ‘Africa Action
Plan’ in order to obtain new relationships with development partners to share responsibilities
regarding discovering ways to receive aid from foreign investors.[54]

Trade blocks and multilateral organizations[edit]

The African Union is the largest international economic grouping on the continent. The
confederation's goals include the creation of a free trade area, a customs union, a single market,
a central bank, and a common currency (see African Monetary Union), thereby
establishing economic and monetary union. The current plan is to establish an African Economic
Community with a single currency by 2023.[55] The African Investment Bank is meant to stimulate
development. The AU plans also include a transitional African Monetary Fund leading to an African
Central Bank. Some parties support development of an even more unified United States of Africa.
International monetary and banking unions include:

 Central Bank of West African States

 Bank of Central African States

 Common Monetary Area

Major economic unions are shown in the chart below.

African Economic Community

GDP (PPP) ($US)

Pillars
Member
regional Area (km²) Population
states
blocs (REC)1
in millions per capita

AEC 29,910,442 853,520,010 2,053,706 2,406 54

ECOWAS 5,112,903 349,154,000 1,322,452 3,888 15

ECCAS 6,667,421 121,245,958 175,928 1,451 11

SADC 9,882,959 233,944,179 737,335 3,152 15

EAC 2,440,409 169,519,847 411,813 2,429 6

COMESA 12,873,957 406,102,471 735,599 1,811 20

IGAD 5,233,604 187,969,775 225,049 1,197 7

GDP (PPP) ($US)

Other
Member
African Area (km²) Population
states
blocs
in millions per capita

CEMAC 2 3,020,142 34,970,529 85,136 2,435 6

SACU 2,693,418 51,055,878 541,433 10,605 5

UEMOA 1 3,505,375 80,865,222 101,640 1,257 8

UMA 2 5,782,140 84,185,073 491,276 5,836 5

GAFTA 3 5,876,960 166,259,603 635,450 3,822 5

1
Economic bloc inside a pillar REC

2
Proposed for pillar REC, but objecting participation
3
Non-African members of GAFTA are excluded from figures

smallest value among the blocs compared

largest value among the blocs compared

During 2004. Source: CIA World Factbook 2005, IMF WEO Database
This box:

view
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Further information: Economy of the African Union

Economic variants and indicators[edit]

Map of Africa by nominal GDP in billions USD (2008).

200+

100–200

50–100

20–50

10–20

5–10

1–5

0–1

After an initial rebound from the 2009 world economic crisis, Africa’s economy was undermined in
the year 2011 by the Arab uprisings. The continent’s growth fell back from 5% in 2010 to 3.4% in
2011. With the recovery of North African economies and sustained improvement in other regions,
growth across the continent is expected to accelerate to 4.5% in 2012 and 4.8% in 2013. Short-term
problems for the world economy remain as Europe confronts its debt crisis. Commodity prices—
crucial for Africa—have declined from their peak due to weaker demand and increased supply, and
some could fall further. But prices are expected to remain at levels favourable for African exporter. [56]

Regions[edit]
Economic activity has rebounded across Africa. However, the pace of recovery was uneven among
groups of countries and subregions. Oil-exporting countries generally expanded more strongly than
oil-importing countries. West Africa and East Africa were the two best-performing subregions in
2010.[57]
Intra-African trade has been slowed by protectionist policies among countries and regions. Despite
this, trade between countries belonging to the Common Market for Eastern and Southern
Africa (COMESA), a particularly strong economic region, grew six-fold over the past decade up to
2012.[58] Ghana and Kenya, for example, have developed markets within the region for construction
materials, machinery, and finished products, quite different from the mining and agriculture products
that make up the bulk of their international exports. [59]
The African Ministers of Trade agreed in 2010 to create a Pan-Africa Free Trade Zone. This would
reduce countries' tariffs on imports and increase intra-African trade, and it is hoped, the
diversification of the economy overall. [60]
Worlds regions by total wealth (in trillions USD), 2018

Countries by total wealth (billions USD), Credit Suisse, 2018

Countries by 2018 GDP (nominal) per capita[61]

African nations[edit]

Total GDP (nominal) GDP Growth,

GDP per capita[63]
Country [62]
2007-2011 HDI 2017[64]
(US$, PPP)
(billion US$) (in %)[62]

Algeria 188.7 15,758 2.7 0.754

Angola 124.1 6,850 9.1 0.581

Benin 8.3 2,405 3.9 0.515

 Total GDP (nominal) GDP Growth,
GDP per capita[63]
Country [62]
2007-2011 HDI 2017[64]
(US$, PPP)
(billion US$) (in %)[62]

Botswana 14.8 18,843 3.0 0.712

Burkina Faso 10.2 1,994 4.9 0.423

Burundi 2.3 731 4.3 0.417

Cameroon 29.6 3,799 3.1 0.556

Cape Verde 1.9 7,316 5.8 0.654

Central African
2.2 706 2.8 0.367
Republic

Chad 9.5 2,420 2.9 0.404

Comoros 0.6 1,629 1.5 0.503

Democratic Republic of
32.7 813 5.9 0.457
the Congo

Congo 14.7 6,676 4.9 0.606

Ivory Coast 24.1 4,155 1.1 0.492

Djibouti 1.0 (2009) 3,778 5.3 0.476

Egypt 229.5 13,330 5.2 0.696

 Total GDP (nominal) GDP Growth,
GDP per capita[63]
Country [62]
2007-2011 HDI 2017[64]
(US$, PPP)
(billion US$) (in %)[62]

Equatorial Guinea 19.8 32,855 8.8 0.591

Eritrea 2.6 1,653 1.3 0.440

Eswatini (Swaziland) 4.0 9,894 2.1 0.588

Ethiopia 47.5 2,361 9.7 0.463

Gabon 19.3 19,952 3.6 0.702

Gambia 0.9 1,790 6.0 0.460

Ghana 48.1 5,013 8.3 0.592

Guinea 5.1 2,154 2.4 0.459

Guinea-Bissau 1.0 1,948 3.6 0.455

Kenya 55.2 3,664 4.2 0.590

Lesotho 2.4 3,713 4.9 0.520

Liberia 2.0 1,396 11.6 0.435

 Total GDP (nominal) GDP Growth,
GDP per capita[63]
Country [62]
2007-2011 HDI 2017[64]
(US$, PPP)
(billion US$) (in %)[62]

Libya 62.4 (2009) 11,774 4.0 0.706

Madagascar 10.6 1,622 2.3 0.519

Malawi 5.7 1,201 6.8 0.477

Mali 10.6 2,256 4.5 0.427

Mauritania 4.1 4,564 2.8 0.520

Mauritius 11.9 22,910 4.5 0.790

Morocco 100.2 8,936 4.3 0.667

Mozambique 15.6 1,275 6.9 0.437

Namibia 13.1 11,613 3.7 0.647

Niger 6.0 1,214 4.3 0.354

Nigeria 568.5 6,027 6.8 0.532

Réunion (France) 15.98[65] 8,233(nominal)[65] 0.850(2003)[66]

Rwanda 7.5 2,225 7.3 0.524

 Total GDP (nominal) GDP Growth,
GDP per capita[63]
Country [62]
2007-2011 HDI 2017[64]
(US$, PPP)
(billion US$) (in %)[62]

São Tomé and

0.3 3,338 5.7 0.589
Príncipe

Senegal 14.3 2,901 3.5 0.505

Seychelles 1.4 30,084 4.2 0.797

Sierra Leone 2.2 1,608 5.2 0.419

Somalia (N/A) (N/A) (N/A) 0.364 (2008) [67]

South Africa 349.8 13,840 2.7 0.699

South Sudan 11.8 1,420 0.388

Sudan 55.1 4,725 4.1 0.502

Tanzania 43.6 3,457 6.8 0.538

Togo 4.3 1,736 3.1 0.503

Tunisia 45.9 12,186 3.0 0.735

Uganda 24.7 2,458 7.4 0.516

Zambia 26.8 4,124 6.4 0.588

 Total GDP (nominal) GDP Growth,
GDP per capita[63]
Country [62]
2007-2011 HDI 2017[64]
(US$, PPP)
(billion US$) (in %)[62]

Zimbabwe 13.5 2,330 0.6 0.535

Economic sectors and industries[edit]

Because Africa’s export portfolio remains predominantly based on raw material, its export earnings
are contingent on commodity price fluctuations. This exacerbates the continent’s susceptibility to
external shocks and bolsters the need for export diversification. Trade in services, mainly travel and
tourism, continued to rise in year 2012, underscoring the continent’s strong potential in this sphere. [56]
[68][69]

Agriculture[edit]
See also: Women and agriculture in Sub-Saharan Africa

A Kenyan farmer at work in the Mount Kenya region

The situation whereby African nations export crops to the West while millions on the continent starve
has been blamed on developed countries including Japan, the European Union and the United
States. These countries protect their own agricultural sectors with high import tariffs and offer
subsidies to their farmers,[70] which many contend leads the overproduction of such commodities as
grain, cotton and milk. The result of this is that the global price of such products is continually
reduced until Africans are unable to compete, except for cash crops that do not grow easily in a
northern climate.[68][69][71]
In recent years countries such as Brazil, which has experienced progress in agricultural production,
have agreed to share technology with Africa to increase agricultural production in the continent to
make it a more viable trade partner.[72] Increased investment in African agricultural technology in
general has the potential to reduce poverty in Africa.[68][69][73] The demand market for African cocoa has
experienced a price boom in 2008. [74] The Nigerian,[75] South African[76] and Ugandan governments
have targeted policies to take advantage of the increased demand for certain agricultural
products[77] and plan to stimulate agricultural sectors.[78] The African Union has plans to heavily invest
in African agriculture[79] and the situation is closely monitored by the UN.[80]

Energy[edit]
Further information: Energy in Africa
The Athlone Power Station in Cape Town, South Africa

Mean Wind Speed in Sub-Saharan Africa.[81]

Global Horizontal Irradiation in Sub-Saharan Africa. [81]

Africa has significant resources for generating energy in several forms (hydroelectric, reserves of
petroleum and gas, coal production, uranium production, renewable energy such as solar, wind and
geothermal). The lack of development and infrastructure means that little of this potential is actually
in use today.[68][69] The largest consumers of electric power in Africa are South Africa, Libya, Namibia,
Egypt, Tunisia, and Zimbabwe, which each consume between 1000 and 5000 KWh/m 2 per person, in
contrast with African states such as Ethiopia, Eritrea, and Tanzania, where electricity consumption
per person is negligible.[82]
Petroleum and petroleum products are the main export of 14 African countries. Petroleum and
petroleum products accounted for a 46.6% share of Africa's total exports in 2010; the second largest
export of Africa as a whole is natural gas, in its gaseous state and as liquified natural gas,
accounting for a 6.3% share of Africa's exports. [83]

Infrastructure[edit]

Lagos, Nigeria, Africa's largest city

Lack of infrastructure creates barriers for African businesses.[68][69] Although it has many ports, a lack
of supporting transportation infrastructure adds 30–40% to costs, in contrast to Asian ports. [84]
Railway projects were important in mining districts from the late 19th century. Large railway and road
projects characterize the late 19th century. Railroads were emphasized in the colonial era, and roads
in ‘post-colonial’ times. Jedwab & Storeygard find that in 1960–2015 there were strong correlations
between transportation investments and economic development. Influential political include pre-
colonial centralization, ethnic fractionalization, European settlement, natural resource dependence,
and democracy.[85]
Many large infrastructure projects are underway across Africa. By far, most of these projects are in
the production and transportation of electric power. Many other projects include paved highways,
railways, airports, and other construction. [84]
Telecommunications infrastructure is also a growth area in Africa. Although Internet penetration lags
other continents, it has still reached 9%. As of 2011, it was estimated that 500,000,000 mobile
phones of all types were in use in Africa, including 15,000,000 "smart phones".[86]

Mining and drilling[edit]

Main article: Mineral industry of Africa
 Oil production by country [1]

Rank Area bb/day Year Like...

_ W: World 85540000 2007 est.

01 E: Russia 9980000 2007 est.

02 Ar: Saudi Arb 9200000 2008 est.

04 As: Libya 4725000 2008 est. Iran

10 Af: Nigeria 2352000 2011 est. Norway

15 Af: Algeria 2173000 2007 est.

16 Af: Angola 1910000 2008 est.

17 Af: Egypt 1845000 2007 est.

27 Af: Tunisia 664000 2007 est. Australia

31 Af: Sudan 466100 2007 est. Ecuador

33 Af: Eq. Guinea 368500 2007 est. Vietnam

38 Af: DR Congo 261000 2008 est.

39 Af: Gabon 243900 2007 est.

 Oil production by country [1]

Rank Area bb/day Year Like...

_ W: World 85540000 2007 est.

40 Af: Sth Africa 199100 2007 est.

45 Af: Chad 156000 2008 est. Germany

53 Af: Cameroon 87400 2008 est. France

56 E: France 71400 2007

60 Af: Ivory Coast 54400 2008 est.

_ Af: Africa 10780400 2011 Russia

The mineral industry of Africa is one of the largest mineral industries in the world. Africa is the
second biggest continent, with 30 million km² of land, which implies large quantities of resources. [68]
[69]
For many African countries, mineral exploration and production constitute significant parts of their
economies and remain keys to future economic growth. Africa is richly endowed with mineral
reserves and ranks first or second in quantity of world reserves of bauxite, cobalt, industrial
diamond, phosphate rock, platinum-group metals (PGM), vermiculite, and zirconium. Gold mining is
Africa's main mining resource.
African mineral reserves rank first or second for bauxite, cobalt, diamonds, phosphate rocks,
platinum-group metals (PGM), vermiculite, and zirconium. Many other minerals are also present in
quantity. The 2005 share of world production from African soil is the following: bauxite 9%; aluminium
5%; chromite 44%; cobalt 57%; copper 5%; gold 21%; iron ore 4%; steel 2%; lead (Pb) 3%;
manganese 39%; zinc 2%; cement 4%; natural diamond 46%; graphite 2%; phosphate rock 31%;
coal 5%; mineral fuels (including coal) & petroleum 13%; uranium 16%.

Manufacturing[edit]
Both the African Union and the United Nations have outlined plans in modern years on how Africa
can help itself industrialize and develop significant manufacturing sectors to levels proportional to the
African economy in the 1960s with 21st-century technology. [87] This focus on growth and
diversification of manufacturing and industrial production, as well as diversification of agricultural
production, has fueled hopes that the 21st century will prove to be a century of economic and
technological growth for Africa. This hope, coupled with the rise of new leaders in Africa in the future,
inspired the term "the African Century", referring to the 21st century potentially being the century
when Africa's vast untapped labor, capital, and resource potentials might become a world player.

The Soucreye sugar factory in Sidi Bennour (Doukkala), Morocco

This hope in manufacturing and industry is helped by the boom in communications technology [88]
[89]
and local mining industry[90] in much of sub-Saharan Africa. Namibia has attracted industrial
investments in recent years[91] and South Africa has begun offering tax incentives to attract foreign
direct investment projects in manufacturing. [92]
Countries such as Mauritius have plans for developing new "green technology" for manufacturing.
[93]
Developments such as this have huge potential to open new markets for African countries as the
demand for alternative "green" and clean technology is predicted to soar in the future as global oil
reserves dry up and fossil fuel-based technology becomes less economically viable. [94][95]
Nigeria in recent years has been embracing industrialization, It currently has an indigenous vehicle
manufacturing company, Innoson Vehicle Manufacturing (IVM)which manufactures Rapid Transit
Buses, Trucks and SUVs with an upcoming introduction of Cars.[96] Their various brands of vehicle
are currently available in Nigeria, Ghana and other West African Nations. [97][98][99][100] Nigeria also has
few Electronic manufacturers like Zinox, the first Branded Nigerian Computer and Electronic gadgets
(like tablet PCs) manufacturers.[101] In 2013, Nigeria introduced a policy regarding import duty on
vehicles to encourage local manufacturing companies in the country. [102][103] In this regard, some
foreign vehicle manufacturing companies like Nissan have made known their plans to have
manufacturing plants in Nigeria.[104]Apart from Electronics and vehicles, most consumer,
pharmaceutical and cosmetic products, building materials, textiles, home tools, plastics and so on
are also manufactured in the country and exported to other west African and African countries. [105][106]
[107]
Nigeria is currently the largest manufacturer of cement in Sub-saharan Africa. [108] and Dangote
Cement Factory, Obajana is the largest cement factory in sub-saharan Africa.[109] Ogun is considered
to be Nigeria's industrial hub (as most factories are located in Ogun and even more companies are
moving there), followed by Lagos.[110][111][112]
The manufacturing sector is small but growing in East Africa. [113] The main industries are textile and
clothing, leather processing, agribusiness, chemical products, electronics and vehicles. [113] East
African countries like Uganda also produce motorcycles for the domestic market. [114]

Investment and banking[edit]

See also: Central banks and currencies of Africa and List of African stock exchanges
Many financial firms have offices in downtown Johannesburg, South Africa.

Africa's US$107 billion financial services industry will log impressive growth for the rest of the
decade[which?] as more banks target the continent's emerging middle class.[115] The banking sector has
been experiencing record growth, among others due to various technological innovations. [116]
China and India[117] have showed increasing interest in emerging African economies in the 21st
century. Reciprocal investment between Africa and China increased dramatically in recent years [118]
[119]
amidst the current world financial crisis.[120]
The increased investment in Africa by China has attracted the attention of the European Union and
has provoked talks of competitive investment by the EU.[121] Members of the African diaspora abroad,
especially in the EU and the United States, have increased efforts to use their businesses to invest
in Africa and encourage African investment abroad in the European economy. [122]
Remittances from the African diaspora and rising interest in investment from the West will be
especially helpful for Africa's least developed and most devastated economies, such as Burundi,
Togo and Comoros.[123] However, experts lament the high fees involved in sending remittances to
Africa due to a duopoly of Western Union and MoneyGram that is controlling Africa’s remittance
market, making Africa is the most expensive cash transfer market in the world. [124] According to some
experts, the high processing fees involved in sending money to Africa are hampering African
countries’ development.[125]
Angola has announced interests in investing in the EU, Portugal in particular. [126] South Africa has
attracted increasing attention from the United States as a new frontier of investment in manufacture,
financial markets and small business,[127] as has Liberia in recent years under their new leadership. [128]
There are two African currency unions: the West African Banque Centrale des États de l'Afrique de
l'Ouest (BCEAO) and the Central African Banque des États de l'Afrique Centrale (BEAC). Both use
the CFA franc as their legal tender. The idea of a single currency union across Africa has been
floated, and plans exist to have it established by 2020, though many issues, such as bringing
continental inflation rates below 5 percent, remain hurdles in its finalization. [129]
Stock exchanges[edit]

The Bourse de Tunis headquarters in Tunis, Tunisia

As of 2012, Africa has 23 stock exchanges, twice as many as it had 20 years earlier. Nonetheless,
African stock exchanges still account for less than 1% of the world's stock exchange activity. [130] The
top ten stock exchanges in Africa by stock capital are (amounts are given in billions of United States
dollars):[131]

 South Africa (82.88)(2014)[132]

 Egypt ($73.04 billion (30 November 2014 est.))[133]

 Morocco (5.18)

 Nigeria (5.11) (Actually has a market capitalisation value of $39.27Bln) [134]

 Kenya (1.33)

 Tunisia (0.88)

 BRVM (regional stock exchange whose members include Benin, Burkina Faso, Guinea-
Bissau, Ivory Coast, Mali, Niger, Senegal and Togo: 6.6)

 Mauritius (0.55)

 Botswana (0.43)

 Ghana (.38)

Between 2009 and 2012, a total of 72 companies were launched on the stock exchanges of 13
African countries.[135]

Trade blocs and multilateral organizations[edit]

Further information: Economy of the African Union

The African Union is the largest international economic grouping on the continent. The
confederation's goals include the creation of a free trade area, a customs union, a single market,
a central bank, and a common currency (see African Monetary Union), thereby
establishing economic and monetary union. The current plan is to establish an African Economic
Community with a single currency by 2023.[136] The African Investment Bank is meant to stimulate
development. The AU plans also include a transitional African Monetary Fund leading to an African
Central Bank. Some parties support development of an even more unified United States of Africa.
International monetary and banking unions include:

 Central Bank of West African States

 Bank of Central African States

 Common Monetary Area

Major economic unions are shown in the chart below.

African Economic Community

 GDP (PPP) ($US)
Pillars
Member
regional Area (km²) Population
states
blocs (REC)1
in millions per capita

AEC 29,910,442 853,520,010 2,053,706 2,406 54

ECOWAS 5,112,903 349,154,000 1,322,452 3,888 15

ECCAS 6,667,421 121,245,958 175,928 1,451 11

SADC 9,882,959 233,944,179 737,335 3,152 15

EAC 2,440,409 169,519,847 411,813 2,429 6

COMESA 12,873,957 406,102,471 735,599 1,811 20

IGAD 5,233,604 187,969,775 225,049 1,197 7

GDP (PPP) ($US)

Other
Member
African Area (km²) Population
states
blocs
in millions per capita

CEMAC 2 3,020,142 34,970,529 85,136 2,435 6

SACU 2,693,418 51,055,878 541,433 10,605 5

UEMOA 1 3,505,375 80,865,222 101,640 1,257 8

UMA 2 5,782,140 84,185,073 491,276 5,836 5

GAFTA 3 5,876,960 166,259,603 635,450 3,822 5

1
Economic bloc inside a pillar REC

2
Proposed for pillar REC, but objecting participation
3
Non-African members of GAFTA are excluded from figures

smallest value among the blocs compared

largest value among the blocs compared

During 2004. Source: CIA World Factbook 2005, IMF WEO Database
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Regional economic organizations[edit]

During the 1960s, Ghanaian politician Kwame Nkrumah promoted economic and political union of
African countries, with the goal of independence. [137] Since then, objectives, and organizations, have
multiplied. Recent decades have brought efforts at various degrees of regional economic integration.
Trade between African states accounts for only 11% of Africa's total commerce as of 2012, around
five times less than in Asia.[138] Most of this intra-Africa trade originates from South Africa and most of
the trade exports coming out of South Africa goes to abutting countries in Southern Africa. [139]
There are currently eight regional organizations that assist with economic development in Africa: [140]

Cumulati
ve GDP
Name of
Date (in
organizatio Member countries
created millions
n
of US
dollars)

Economic
Community Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea-
28 May
of West Bissau, Guinea, Ivory 657
1975
African Coast, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo
States

30
East African
Novemb Burundi, Kenya, Uganda, Rwanda, Tanzania 232
Community
er 1999

Economic 18 Angola, Burundi, Cameroon, Central African 289

Community
of Central October Republic, Congo, Democratic Republic of
African 1983 Congo, Gabon, Guinea, São Tomé and Príncipe, Chad
States

Southern Angola, Botswana, Eswatini

17
African (Swaziland), Lesotho, Madagascar, Malawi, Mauritius, Mozambiqu
August 909
Developmen e, Namibia, Democratic Republic of Congo, Seychelles, South
1992
t Community Africa, Tanzania, Zambia, Zimbabwe

Intergovern
mental 25
Authority on Novemb Djibouti, Ethiopia, Kenya, Uganda, Somalia, Sudan, South Sudan 326
Developmen er 1996
t

Benin, Burkina Faso, Central African

Community Republic, Comoros, Djibouti, Egypt, Eritrea, Gambia, Ghana, Guin
4
of Sahel- ea, Guinea-Bissau, Ivory
February 1, 692
Saharan Coast, Kenya, Liberia, Libya, Mali, Morocco, Mauritania, Niger, Nig
1998
States eria, São Tomé and Príncipe, Senegal, Sierra
Leone, Somalia, Sudan, Chad, Togo, Tunisia

Common
Burundi, Comoros, Djibouti, Egypt, Eritrea, Eswatini
Market for 5
(Swaziland), Ethiopia, Kenya, Liberia, Madagascar, Malawi, Mauriti
Eastern and Novemb 1,011
us, Uganda, Democratic Republic of
Southern er 1993
Congo, Rwanda, Seychelles, Sudan, Zambia, Zimbabwe
Africa

Arab 17
Maghreb February Algeria, Libya, Morocco, Mauritania, Tunisia 579
Union 1989