From grace to grass, the Giant of Africa and a country regarded as one of Africa’s biggest economy, Nigeria has been shown by the IMF to be no longer anywhere near the Top 15 fastest growing economies in Africa 2016.
Having enjoyed blissful growth over the past decade, Nigeria was one of the fastest growing economies in the world. In 2014 and early 2015, Nigeria was named the third fastest growing economy in the world by CNNMoney, with China and Qatar taking the lead at 7.3 percent, 7.1 percent gross domestic product (GDP) growth.
For 2016, however, the coast is cloudy, and Nigeria is nowhere near the fastest growing economies in Africa. The April review by the International Monetary Funds (IMF) World Economic Outlook for 2016, shows that the fastest growing economy in Africa for 2016 is Cote d’Ivoire, while the slowest is Chad, which is expected to record negative growth.
From statisticsal analysis, Cote d’Ivoire is expected to experience an 8.5 percent rise in Gross Domestic Product (GDP), and Nigeria’s neighbour, Chad, would see a -0.4 percent growth.
IMF Review of Percentage GDP of Fastest Growing Countries in Africa
The fastest growing economies in Africa by GDP growth rate, as projected by IMF for 2016, are:
- Cote D’Ivoire (8.5%),
- Tanzania (6.9%),
- Senegal (6.6%),
- Djibouti (6.5%),
- Rwanda (6.3%),
- Kenya (6.0%),
- Mozambique (6.0%),
- Central African Republic (5.7%),
- Sierra Leone (5.3%) and
- Uganda (5.3%)
DR Congo expects a GDP growth of 4.9 percent, Cameroon; 4.9 percent, Ethiopia; 4.5 percent, Ghana; 4.5 percent and Republic of Congo; 4.4 percent. Madagascar, Zambia and Chad are expected to see a growth of 4.1 percent, 3.4 percent, 3.2 percent respectively.
Following the slump in oil price, major oil exporters in Africa such as Angola and Nigeria, badly hit by the oil prices crash, are projected to see a growth of just 2.5 and 2.3 percent respectively. At 2.3 percent, Nigeria is expected to see its poorest GDP growth since the return of Democracy in 1999.
This development has become a point of concern for the IMF, and the World Economic Forum (WEF), which would be having its meeting on Africa later in May. According to the World Economic Forum, Africa’s positive economic outlook is under pressure with the growth rate expected to remain just under 5 per cent. Foreign direct investment flows are expected to continue to grow, although at a slower pace.
Rwanda has transformed dramatically since the 1994 genocide and is now placed 5th in the fastest growing African economies. The country is one of the continent’s most competitive economies and a top reformer in improving the business environment.
As stated by the World Economic Forum (WEF),
“It is important to recognize the challenges that many African economies face – the commodities slump, currency devaluations and geo-security risks all threaten growth.”
According to the Forum, the meeting in May will highlight the need for diversification in order to ensure inclusive economic growth, tapping into the fourth industrial revolution’s potential to create new industries and help reduce inequality across the continent.
The World Economic Forum on Africa 2016 will take place in Kigali, Rwanda from 11-13 May.