ECA tips Africa to dominate world’s economy by 2025

The Economic Commission for Africa (ECA) has projected that African countries would be among the world’s top 10 fastest-growing economies by 2025.

In a report titled: “African countries to dominate the world’s top 10 growing economies,” ECA listed Niger Republic, Senegal, Ivory Coast, the Democratic Republic of the Congo (DRC), and Rwanda among the countries to push growth in Africa in 2024.

In his remark, the Director of the Macroeconomics and Governance Division at ECA, Adam Elhiraika, said Africa was the fastest-growing region following East and South Asia in the developing world during 2023.

He predicted that the growth momentum would persist through 2024 and 2025.

The commission added that significant economic expansion in Niger and Senegal is anticipated, primarily driven by an upsurge in hydrocarbon production and exports.

According to ECA, the DRC growth will be fuelled by the extractive sector due to the opening of new oilfields as well as by agriculture, services, and mining in accordance with the national strategy to boost social and investment expenditures.

READ ALSO: AfDB projects 3.4% growth for Africa’s economy in 2021

“The economic expansion in Niger is expected to be driven by a resurgence in agricultural output, although susceptible to adverse weather conditions, and an increase in crude oil production, which is likely to positively affect the transportation sector.

“However, the recent military coups and subsequent sanctions from regional blocs have negatively impacted economic activities and resulted in considerable social repercussions.

In Senegal, growth is anticipated to stem from an increase in private sector and infrastructure investments. Nevertheless, the electoral activities in up to 15 African countries, including the recently completed presidential elections in Senegal, may influence the region’s short-term economic growth and development trajectory,” it added.

The ECA predicted that Africa’s economy would expand from 2.8% in 2023 to 3.5% in 2024, and further to 4.1% in 2025, primarily supported by net exports, private consumption, and gross fixed investment.

“However, Africa’s economic progress is characterized by instability and remains below its potential level, which is insufficient to meet the Sustainable Development Goals (SDGs) and the agenda 2063 targets.

“This situation calls for significant adjustments in fiscal and monetary policies, along with enhanced measures to rectify internal and external imbalances and to tackle inflation and debt challenges,” the commission concluded.

By: Babajide Okeowo

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