Africa's Economies: A Continent of 54 Countries

Why it is misleading to talk about "the African economy", and a tour of the continent's very different economies, from Nigeria and South Africa to Kenya and Ethiopia.

Africa is often discussed as if it were one country. In fact, it has 54 countries with very different histories, languages, resources and economies. Understanding Africa’s economies starts with recognising that diversity.

Size and population

Africa is home to around 1.5 billion people, roughly a sixth of the world’s population. Yet its combined economic output is a small share of the world’s total. Average incomes are the lowest of any continent, but they vary enormously between countries.

Very different economies

Nigeria, Africa’s most populous country, has a large economy built on oil exports along with a growing services sector, including banking, telecommunications and entertainment.
South Africa has the continent’s most industrialised economy, with major mining, manufacturing and financial sectors, but very high unemployment and inequality.
Egypt has a large, diverse economy with tourism, the Suez Canal, natural gas and manufacturing.
Kenya is a regional hub for finance and technology in East Africa and a world leader in mobile money.
Ethiopia grew rapidly for over a decade through heavy public investment, though it has faced conflict and debt problems in recent years.
Small economies such as Mauritius, Seychelles and Botswana have among the highest incomes per person on the continent.

Growth stories

From around 2000, many African economies grew faster than in previous decades, helped by high commodity prices, better economic management, debt relief and new technologies. Some countries, such as Ethiopia, Rwanda and Côte d’Ivoire, have been among the world’s fastest-growing economies in various years. Growth has been uneven, however, and slowed in many countries after commodity prices fell in the mid-2010s.

Comparing two neighbours

Botswana and Zimbabwe share a border. Since independence, Botswana has used diamond wealth and stable institutions to become an upper-middle-income country. Zimbabwe, once relatively prosperous, suffered economic collapse and hyperinflation in the 2000s. Neighbouring countries on the same continent can follow completely different economic paths.

Common challenges

Despite their differences, many African economies share challenges: dependence on raw material exports, gaps in electricity and transport, large informal sectors, and the need to create jobs for fast-growing young populations. The lessons in this module explore these themes.

Treating Africa as a single economy

Statements like "Africa is poor" or "Africa is booming" hide huge differences between countries. Serious analysis looks at individual countries and regions, each with its own strengths and problems.

Key takeaways

Africa has 54 countries and around 1.5 billion people with very different economies.
Nigeria, South Africa and Egypt are among the largest economies; Mauritius and Botswana have high incomes per person.
Many African economies grew faster from around 2000, though unevenly.
Common challenges include commodity dependence, infrastructure gaps and job creation.