What are top 10 countries with the fastest developing economies in Africa? Learn how these countries grow in this article!
What is developing economy?
The developing economy is one where people have a lower standard of living and less developed industries than other countries. However, this is always relative.
Also, it can be defined by the way the country makes money. In a developing economy, a country makes use of its natural resources. In a developed economy the country relies on information and communication technology - computers and the Internet.
Africa is currently growing economically of between 5 to 8 % per year. It is the youngest region in the world, which is preparing to take its place in a future global economy when the population on earth will reach 10 billion by 20150. While the number of workforce in Africa will be 1.1 billion by 2040. It is going to be the largest in the world. The continent is one of the best sources of raw materials.
Below, we take a look at the fastest growing economies in Africa.
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Surprisingly, Ethiopia is the number one in our list. Recently, the government started to concentrate on such aspects of the economy such as textiles, energy generation, and manufacturing. Previously, the country focused mostly on agriculture. However, the per capita income in Ethiopia still remains the lowest in the world.
Thanking to the rich oil resources and favorable agricultural conditions, Cameroon became one of the best-endowed primary commodity economies in Africa. Oil is the major export commodity. It accounts about 40% of export income.
The country spends a lot of resources to several large infrastructure projects under construction. For example, they include the Lom Pangar Hydropower Project and deep sea port in Kribi. The energy sector of the country continues to develop. Recently, the new natural gas-powered electricity plant was opened.
Chad is very dependent on neighboring countries because of its landlocked location. In addition, transportation cost is very high. Also, Chad relies on foreign capital for more investments. International investments are mostly attracted through banking and telecommunications.
Talking about earnings, then it is visible that cattle, livestock, cotton and gum Arabic provide the great amount of earnings, while oil gives about 60 % of export revenues. The service sector brings in about 30% of GDP.
4. Democratic Republic of Congo
The Democratic Republic of Congo has started to recover its economy after the noisy 1990s. The country has a lot of natural resources, which were not used wisely because of the various troubles such as conflicts, political instability, and corruption.
5. Cote d’Ivore
Cote d’Ivore is the world’s largest producer and exporter of coffee, palm-oil, and cocoa beans. The most of the population works in agriculture industry – about two-thirds of all people.
Tanzania is one of the poorest in the world regarding per capita income. But in spite of that, the country started to grow robustly because of tourism and gold production. Also, the primary sources of income include energy, mining, agriculture, banking and telecommunications.
Rwanda has taken many steps in its path to economic growth since the 1994 genocide. Nevertheless, 45 % of the population still lives in poverty. 90% of inhabitants work in mineral agro-processing or agriculture industry. Also, Rwanda’s economy is focused on tea and coffee production as well tourism and minerals.
Analysts predict that country growth rates should continue since Mozambique has attracted significant investment projects in natural resources. They believe that country will get large earnings from coal, natural gas, and hydroelectric capacity within five years. But the fact is so that more than 50% of the population remains below the poverty line.
Kenya is the economic and transport hub of East Africa. The GDP growth of the country was about 5% for the last few years.
GDP growth in Zambia was around 6,7 % per annum during the past ten years. Overall, the country was one of the world’s fastest growing economies.
Watch the video to find out more about fatsets developing economies in the world!