Here is Africa’s 10 richest countries. Is yours on the list?

This week compiled a list of the top 10 richest countries in Africa. Visit one of these countries if you want to be spoiled and thrilled.
South Africa
GDP: $595.7 billion

South Africa is popularly known for its mineral resources such as gold
and diamond but the Gold Rush ended way back in the 19th century. There are more things to look forward to in South Africa besides its shiny jewels. Major cities like Johannesburg and Cape Town offer a unique experience that can take you from raving nights out in the town to calm mountain ranges by the ocean.

South Africa has a comparative advantage in the production of agriculture, mining and manufacturing products relating to these sectors. South Africa has shifted from a primary and secondary economy in the mid-twentieth century to an economy driven primarily by the tertiary sector in the present day which accounts for an estimated 65% of GDP or $230 billion in nominal GDP terms. The country’s economy is reasonably diversified with key economic sectors including mining, agriculture and fisheries, vehicle manufacturing and assembly, food processing, clothing and textiles, telecommunication, energy, financial and business services, real estate, tourism, transportation, and wholesale and retail trade. 

South Africa, unlike other emerging markets, has struggled through the late 2000s recession, and the recovery has been largely led by private and public consumption growth, while export volumes and private investment have yet to fully recover. The long-term potential growth rate of South Africa under the current policy environment has been estimated at 3.5%. Per capita GDP growth has proved mediocre, though improving, growing by 1.6% a year from 1994 to 2009, and by 2.2% over the 2000–09 decade, compared to world growth of 3.1% over the same period.  

Egypt
GDP: $551.4 billion

Sandwiched between Africa and Asia, much of Egypt’s population lies on the banks of the famous Nile Valley. Egypt is known as a cradle of civilization with evidence of human technological advancement obvious from its numerous temples, Pyramids and famous monuments such as the Great Sphinx. Egypt has gathered wealth from as far back as 3200 BC and much of this can be seen in the major cities like Cairo.   

The economy of  Egypt was a highly centralized planned economy focused on import substitution under President Gamal Abdel Nasser. In the 1990s, a series of International Monetary Fund arrangements, coupled with massive external debt relief resulting from Egypt’s participation in the Gulf War coalition, helped Egypt improve its macroeconomic performance. Since 2000, the pace of structural reforms, including fiscal, monetary policies, taxation, privatization and new business legislations, helped Egypt move towards a more market-oriented economy and prompted increased foreign investment. The reforms and policies have strengthened macroeconomic annual growth results which averaged 8% annually between 2004 and 2009 but the government largely failed to equitably share the wealth and the benefits of growth have failed to trickle down to improve economic conditions for the broader population, especially with the growing problem of unemployment and underemployment. After the 2011 revolution Egypt’s foreign exchange reserves fell from $36 billion in December 2010 to only $16.3 billion in January 2012, also in February 2012 Standard & Poor’s rating agency lowered the Egypt’s credit rating from B+ to B in the long term.^[12] In 2013, S&P lowered Egypt’s long-term credit rating from B- to CCC+, and its short-term rating from B to C on worries about the country’s ability to meet its financial targets and maintain social peace more than two years after President Hosni Mubarak was overthrown in an uprising, ushering in a new era

Nigeria

GDP: $478.5 billion

 The most populous country in Africa is a major contender on this list, its manufacturing sector being the third largest in Africa while it contributes a considerable share of the world’s oil. Taking into account this country’s population of 170 million, Nigeria is on track to becoming one of the 20 largest economies in the world by 2020. This can be seen in cities like Lagos where the city skyline is composed of tall buildings owned by big multinational corporations.

Nigeria is a middle income, mixed economy and emerging market, with expanding financial, service, communications, technology and entertainment sectors. It is ranked 21st largest economy in the world in terms of nominal GDP, and 20th largest in terms of Purchasing Power Parity. It is the largest economy in Africa; Its re-emergent, though currently underperforming, manufacturing sector is the third-largest on the continent, and produces a large proportion of goods and services for the West African sub-region. Nigeria recently changed its economic analysis to account for rapidly growing contributors to its GDP, such as telecommunications, banking, and its film industry.

Previously hindered by years of mismanagement, economic reforms of the past decade have put Nigeria back on track towards achieving its full economic potential. Nigerian GDP at purchasing power parity (PPP) has almost tripled from $170 billion in 2000 to $451 billion in 2012, although estimates of the size of the informal sector (which is not included in official figures) put the actual numbers closer to $630 billion. Correspondingly, the GDP per capita doubled from $1400 per person in 2000 to an estimated $2,800 per person in 2012 (again, with the inclusion of the informal sector, it is estimated that GDP per capita hovers around $3,900 per person). (Population increased from 120 million in 2000 to 160 million in 2010). These figures are to be revised upwards by as much as 80% when metrics are recalculated subsequent to the rebasing of its economy in April 2014.  

Algeria

GDP: $284.7 billion

Oil and gas exports have placed Algeria on this list. Much of its wealth is gotten from oil deposits deep within the North African soil. Also rich in natural minerals, it is suggested that the ancient Romans collected stones and marbles from quarries in what is now known as Algeria. You can find onyx, red and white marbles, iron, lead, and zinc in large quantities. It’s capital city, Algiers offers rare beauty in the intricate architecture of its most famous buildings.

Algeria’s agricultural sector, which contributes about 8 per cent of gross domestic product (GDP) but employs 14 per cent of the workforce, is unable to meet the food needs of the country’s population. As a result, some 45 per cent of food is imported. The primary crops are wheat, barley, and potatoes. Farmers also have had success growing dates for export. Cultivation is concentrated in the fertile coastal plain of the Tell region, which represents just a slice of Algeria’s total territory. Altogether, only about 3 per cent of Algerian territory is arable. Even in the Tell, rainfall variability has a significant impact on production. Government efforts to stimulate farming in the less arable steppe and desert regions have met with limited success. However, herdsmen maintain livestock, specifically goats, cattle, and sheep, in the High Plateaus region.

Algeria’s climate and periodic fires are not conducive to a thriving forestry industry. However, Algeria is a producer of cork and Aleppo pine. In 2005 round wood removals totalled 7.8 million cubic meters, while sawn wood production amounted to only 13 million cubic meters per year.^[18]

Algeria’s fishing industry does not take full advantage of the Mediterranean coast, in part because fishing is generally done from small family-owned boats instead of large commercial fishing trawlers. However, the government is attempting to boost the relatively small catch—slightly more than 125,000 metric tons in 2005—by modernizing fishing ports, permitting foreigners to fish in Algerian waters, and subsidizing fishing-related projects.

Fishing

Fishing is a flourishing but minor industry. Fish caught are principally sardines, bonito, mackerel smelt and sprats. Fresh fish are exported to France, dried and preserved fish to Spain and Italy. Coral fisheries are found along the coast from Bona to Tunis. The annual catch averages around 142,000 tons, 54% sardines.

Minerals

Algeria is rich in minerals; the country has many iron, lead, zinc, copper, calamine, antimony and mercury mines. The most productive are those of iron and zinc. Lignite is found in Algiers; immense phosphate beds were discovered near Tébessa in 1891, yielding 313,500 tons in 1905. Phosphate beds are also worked near Sétif, Guelma and Aïn Beïda. There are more than 300 quarries which produce, amongst other stones, onyx and beautiful white and red marbles. Algerian onyx from Ain Tekbalet was used by the Romans, and many ancient quarries have been found near Sidi Ben Yebka, some being certainly those from which the long-lost Numidian marbles were taken. Salt is collected on the margins of the chotts.

Banking and finance

Algeria’s banking sector is dominated by public banks, which suffer from high levels of non-performing loans to state-owned enterprises (SOEs). As of 2007, public banks controlled 95 per cent of total bank assets. In 2007 nonperforming loans represented a towering 38 per cent of total loans at public banks, according to International Monetary Fund (IMF) estimates. Modest progress has been made in implementing several reforms proposed by the IMF, including replacing bank credits to SOEs with government subsidies; boosting bank supervision, accountability, and transparency; and modernizing the payments system. One specific reform that has been achieved is the establishment in 2006 of the Algerian Real Time Settlements system, which facilitates the prompt and reliable electronic transfer of payments. In November 2007, the proposed sale and privatization of Crédit Populaire d’Algérie was postponed because of turbulent market conditions. Recently, HSBC and Deutsche Bank announced that they would commence commercial banking (in the case of HSBC) and investment banking (in the case of Deutsche Bank) in Algeria. Only a few companies are listed on the underdeveloped and relatively opaque Algiers stock exchange. The non-bank sector remains less developed, although recent reforms in the field of regulation and supervision have laid the foundations for leasing, factoring, and venture capital.

Morocco

GDP: $180 billion

Morocco was named the first most competitive economy in North Africa. Tourism, telecoms, textiles and agriculture are Morocco’s biggest cash cows. When next you visit Marrakech, Casablanca or Rabat, be sure to take desert rides, call your friends at home, buy a pair of Babouches and tour the marketplace for something fresh and local.

The government maintained its policy of improving the business climate and encouraging private investment in 2014 so as to support economic transformation. These efforts gave Morocco a ranking of 71st out of 189 countries in the World Bank report Doing Business 2015. A new industrial strategy (for 2014-20) was launched to drive structural change and strengthen the country’s position in global value chains.

The government pledged to continue making Morocco a regional hub to take advantage of free-trade agreements that boosted its trade with sub-Saharan Africa by 13% in 2014.  

On-going efforts to strengthen the macroeconomic base through structural reforms and sectoral strategies helped expand the economy by 2.7% in 2014 despite a poor harvest and low external demand. Internal and external balances improved, with the budget deficit shrinking to 4.9% of GDP and the current account deficit to 6% of GDP, and exchange reserves improved to the equivalent of five months and nine days of imports. Growth prospects for 2015 and 2016 are a healthy 4.5% and 5%, with further reduction of the budget deficit. But the trade balance remains structurally in deficit (19.8% of GDP in 2014).  

Angola

GDP: $131.8 billion

Angola may not have come to mind as one of the top 10 richest countries in Africa but surprisingly, it has a large deposit of oil and gas resources, diamonds, and bountiful agricultural land. Still recovering from the 27-year civil war that lasted from 1975-2002, Angola has made efforts to revive its economy with heavy oil and agricultural exports. Cities like Luanda are undergoing major reconstruction to make Angola a top African destination.

The Angolan economy was hard hit by the sharp decline in international oil prices, as well as a temporary reduction in oil output due to unscheduled maintenance of oil fields, and prolonged drought. Nonetheless, sound macroeconomic policies helped to ensure an economic growth rate of 4.5% in 2014, down from 6.8% in 2013. Angola will suffer from significantly lower oil prices over the 2015/16 horizon. Lower oil prices are expected to lead to sizeable cuts in public spending and a consequent deceleration of GDP growth to 3.8% in 2015. But growth is expected to rebound to 4.2% by 2016.

Growth and equitable development are constrained by the adverse business environment, inadequate governance and transparency in the management of public resources, weak quality and maintenance of physical infrastructure, limited quality of human resources, weak agriculture growth, inefficient public service delivery to the poor, and difficulties in managing income from non-renewables to create savings for future generations. Social pressures are increasing due to the high unemployment rate (26%), particularly among youth; significant poverty, affecting 36.6% of the population; and high income inequality, with a Gini coefficient of 55.3. In this context, structural reforms are imperative to accelerate economic diversification, reduce dependency on natural resources, increase productivity, improve the allocation of resources and create the conditions for a faster rate of economic growth and equitable development. 

Ethiopia

GDP: $118.2 billion

As one of the fastest growing economies in the world, Ethiopia has had to contend with the rising number of able youths eager to work. The Ethiopian economy depends largely on agriculture so if you’ve got an Ethiopian cousin, he’s most likely learning the tools of the farming trade, although you wouldn’t find such people in the country’s capital, Addis Ababa. Most young people in Addis Ababa are into telecommunications and the financial industry, spending their free time sipping local coffee and touring the magnificent buildings.

The International Monetary Fund (IMF) ranks Ethiopia as among the five fastest growing economies in the world. After a decade of continuous expansion (during which real GDP growth averaged 10.8% per annum), in 2013/14 the economy grew for its 11th consecutive year posting 10.3% growth. Over the 12 months from July 2013 (the country’s fiscal year runs from July-July), all of the economy’s main sectors performed well. Agriculture (which represents 40.2% of GDP) grew by 5.4%, industry (14% of GDP) expanded by 21.2% and services (46.2% of GDP) rose by 11.9%. This positive growth should continue for the coming two years, although constraints on private sector development could slow its momentum.  

Supported by a slowdown in global commodity prices, the Government of Ethiopia succeeded in containing annual consumer price inflation to 7.1% in December 2014 (down from 39.2% in 2011) by pursuing a tight monetary policy and using base money as its nominal anchor. Fiscal policy focuses on strengthening domestic resource mobilisation and reducing domestic borrowing with the goal of maintaining macroeconomic stability. A strong fiscal stance, particularly through measures to improve tax administration and enforcement, contained the fiscal deficit to 2.6% of GDP in 2013/14, although this was up from 1.9% of GDP the previous year.  

Tunisia

GDP: $108.4 billion

Oil, tourism and car manufacturing parts are the name of the game in Tunisia. It is one of the wealthiest countries in Africa so you won’t wander too far into its cities like Tunis before finding a pleasant spot to relax. The city is covered with bits of opulence from as far back as the 12th century. Year-round sunshine and the affordable Tunisian lifestyle have drawn tourists here who now call this place home.

Tunisia is in the process of economic reform and liberalization after decades of heavy state direction and participation in the economy. Prudent economic and fiscal planning have resulted in moderate but sustained growth for over a decade. Tunisia’s economic growth historically has depended on oil, phosphates, agri-food products, car parts manufacturing, and tourism. In the World Economic Forum 2008/2009 Global Competitiveness Report, the country ranks first in Africa and 36th globally for economic competitiveness, well ahead of Portugal (43), Italy (49) and Greece (67).^[10] With a GDP (PPP) per capita of $9795 Tunisia is among the wealthiest countries in Africa. Based on HDI, Tunisia ranks 5th in Africa.   

Ghana

GDP: $90.41 billion

Ghana can be tagged as one of the only nations on this list that depend on technological products to live up to its name. Economic industrialization has taken over in cities like Accra and Kumasi with major exports of manufacturing, construction, and digital products and services. It is one of the most economically sound countries in all of Africa, that’s why citizens of nearby countries come to Ghana for business and pleasure.

The economy of Ghana has a diverse and rich resource base, including the manufacturing and exportation of digital technology goods, automotive and ship construction and exportation, and the exportation of diverse and rich resources such as hydrocarbons and industrial minerals. These have given Ghana one of the highest GDPs per capita in Africa.^[12][13] Owing to a GDP re basement, in 2011 Ghana became the fastest growing economy in the world; differences with neighbouring economies are likely to be overstated due to underfunded statistical agencies in surrounding countries.  

The Ghanaian domestic economy in 2012 revolved around services, which accounted for 50% of GDP and employed 28% of the work force. Besides the industrialization associated with minerals and oil, industrial development in Ghana remains basic, often associated with plastics (such as for chairs, plastic bags, razors and pens).   

Sudan

GDP: $89.97 billion

 More than once, we have mentioned oil and gas as the main source of income for countries on this list. Sudan also falls into that category but in a more diverse way. It depends on oil but with a third of its GDP contributed by agriculture. Cotton and peanuts constitute its major agricultural exports. You may not notice a “Made in Sudan” tag on the shirt you buy in Khartoum but cotton from Sudan has fuelled the textile industry in many parts of the world.

A new IMF Staff-Monitored Program (SMP) and a five-year programme of economic reform (FYPER, 2015-19) were adopted in 2014, aimed at enhancing macroeconomic stability and sustaining inclusive growth. Policy makers must nonetheless face challenges stemming from the structural weaknesses of the economy and limited market penetration. The slow growth of credit to the private sector due to low financial intermediation and the crowding-out effects of fiscal operations have further restrained the formalisation of business and job creation. Refusal, since 2014, of foreign correspondent banks to process transfers to and from Sudan in order to avoid violating US sanctions has tightened the foreign-exchange market and raised the costs of imported inputs. In this respect, effective outreach is needed to remove the US sanctions. Additionally, Sudan’s heavy external debt and volatile internal and external political environments could effectively weaken progress towards meeting the Millennium Development Goals (MDGs).

Urbanisation in Sudan has been propelled since the 1990s by worsening conditions in the rural areas and protracted civil conflicts. This has led to the development of slums and camps for the internally displaced, housing shortages in many cities and the proliferation of informality. Absence of a strategy for co-ordinating land use within the national development planning process has contributed to excessive urban growth lacking in structural transformation and specialisation. A specific spatial strategy is needed to focus on maximising the benefits of existing urban assets in order to spread entrepreneurial opportunity, while reviving the rural economy in order to reduce the potential risks and backlash related to economic clustering. google.com/+KayKayDaniels74