Africa Leads World’s Fastest-Growing Economies
Africa is poised to be the second fastest-growing regional economy by 2024, with over 10 African countries experiencing substantial GDP growth.
Last October, the International Monetary Fund emphasized Africa’s pivotal role in global economic development and resilience. Leading forecast growth are Niger, Senegal, Libya, Rwanda and Ivory Coast, whose economic expansion is largely anticipated from strategic and diversified energy sector investments.
Niger – 11.1%
In 2024, Niger is anticipated to be Africa’s fastest-growing economy with 11.1% GDP growth, contingent upon pivotal developments: early sanctions lifting, large-scale oil production, international financing resumption, and a strong agricultural sector.
Niger plans to commence oil exports in January 2024 via its newly established 2,000-kilometer crude oil pipeline, connecting the Agadem oilfield to Benin’s Port of Seme, marking a strategic entry into the global oil market.
Despite diplomatic strains and border closures, the project secured significant investment from the China National Petroleum Corporation, boosting Niger’s daily oil production to 110,000 barrels, with a 2026 target of 200,000 barrels.
Senegal – 8.8%
Senegal’s economic growth is poised to surpass 8.8% in 2024, a sizable jump from previous 5.3% growth in 2023. The surge is attributed in part to the country’s burgeoning oil and gas industry, which positions Senegal as a strategic regional hydrocarbon producer.
Exploratory efforts since 2014 have unveiled over one billion barrels of oil and 120 trillion cubic feet of natural gas offshore. Australia’s Woodside Energy aims for first oil from its offshore Sangomar Field Development in mid-2024, while the Grande Tortue Ahmeyim LNG project, jointly developed by Kosmos Energy and bp, anticipates first gas in the first half of 2024.
Libya – 7.5%
Libya‘s real GDP is expected to grow by 7.5% in 2024, driven by a hydrocarbon sector recovery and elevated oil prices. The government’s energy sector revitalization strategy involves ambitious projects like Eni’s Structures A&E, which features two gas fields in Area D, set to commence production in 2026 and unlock untapped gas reserves.
New exploration is being spearheaded by operators including Algeria’s Sonatrach in the Ghadames Basin and Italy’s Eni in the Sirte Basin.
Additionally, renewable energy projects – including the largest solar farm in North Africa being developed by TotalEnergies and the General Electricity Company of Libya – contribute to Libya’s diversified energy growth.
Rwanda – 7%
Rwanda anticipates 7% economic growth in 2024, with a temporary softening attributed to fiscal and monetary policy adjustments.
Private consumption and new investment are expected to drive growth, especially in sectors like energy, agriculture, trade and hospitality, and financial services.
Rwanda’s predominantly rural economy, heavily reliant on agriculture, has seen substantial growth in the services industry, particularly in construction and ICT.
The country stands out in the latter field, aiming to become a regional hub for ICT professionals, training and research. With extensive fiber optic infrastructure and a national 4G LTE network, Rwanda emphasizes universal internet access to fuel further economic expansion.
Ivory Coast – 6.6%
Ivory Coast’s economy is expected to grow by 6.6% in 2024 – up from 6.2% in 2023 – propelled by private consumption and sustained fixed investments, as well as ongoing hydrocarbon projects like Eni’s Baleine offshore oil and gas field, operational since last August.
Guarding against inflation and hosting the upcoming Africa Cup of Nations are anticipated to further boost private consumption, though fiscal consolidation measures may temper overall economic expansion.
