{{Short description|none}} {{Use dmy dates|date=November 2020}}{{Infobox economy | continent = Africa | image = Platinum Mining.jpg | image_size = 325px | caption = The continent's largest economy, South Africa, reflects the region's abundant natural resources, fertile land, and emerging technology use. | currency = List of currencies in Africa | organs = AU, AfCFTA, WTO, UN | group = {{plainlist| * Emerging markets * Developing economies * Least developed countries in certain regions }} | fixed exchange = | year = Calendar year | population = {{increaseNeutral}} 1.47 billion (2024 estimate)<ref>{{cite web|url=https://www.un.org/development/desa/pd/data/world-population-prospects-2024 |title=World Population Prospects 2024 |publisher=United Nations |website=un.org |access-date=4 January 2025}}</ref> | gdp = {{plainlist| * {{increase}} $2.83 trillion (nominal; {{abbr|2025|2025 forecast}})<ref name="IMF DataMapper">{{cite web |url=https://www.imf.org/external/datamapper/profile/AFQ |title=IMF DataMapper: Africa |website=International Monetary Fund |date=2025 |access-date=12 Sep 2025}}</ref> * {{increase}} $10.83 trillion (PPP; {{abbr|2025|2025}})<ref name="IMF DataMapper"/> }} | growth = {{plainlist| * {{Increase}} 4.1% (2026f)<ref name="IMF DataMapper" /> * {{Increase}} 4.3% ({{abbr|2027f|2025 forecast}})<ref name="IMF DataMapper" /> * {{Increase}} 4.4% ({{abbr|2028f|2025 forecast}})<ref name="IMF DataMapper" /> }} | per capita = {{plainlist| * {{increase}} $1,930 (nominal; {{abbr|2025|2025 forecast}})<ref name="IMF DataMapper"/> * {{increase}} $7,370 (PPP; {{abbr|2025|2025 forecast}})<ref name="IMF DataMapper"/> }} | sectors = {{plainlist| * Agriculture: 20% * Industry: 25% * Services: 55% * (2023 estimate)<ref name="outlook">{{cite web|url=https://www.afdb.org/en/documents/african-economic-outlook-2024 |title=African Economic Outlook 2024 |publisher=African Development Bank |website=afdb.org |date=16 May 2024 |access-date=4 January 2025}}</ref>}} | inflation = {{plainlist| * 12.8% (2023)<ref>{{cite web|url=https://www.imf.org/en/Publications/WEO/weo-database/2024/October |title=World Economic Outlook Database, October 2024 |publisher=International Monetary Fund |website=imf.org |access-date=4 January 2025}}</ref> * 10.5% ({{abbr|2024f|2024 forecast}})<ref name="outlook"/>}} | poverty = Over 33% living below $1.90/day (2024 estimate)<ref>{{cite web|url=https://databank.worldbank.org/source/poverty-and-equity |title=Poverty and Equity Data |publisher=World Bank |website=worldbank.org |access-date=4 January 2025}}</ref> | gini = 40.0 (2023 estimate; moderate inequality)<ref>{{cite web|url=https://data.worldbank.org/indicator/SI.POV.GINI |title=GINI Index (World Bank estimate) |publisher=World Bank |website=worldbank.org |access-date=4 January 2025}}</ref> | hdi = {{plainlist| * 0.546 (medium; 2021)<ref>{{cite web|url=https://hdr.undp.org/data-center |title=Human Development Data |publisher=United Nations Development Programme |website=hdr.undp.org |access-date=4 January 2025}}</ref>}} | labor = {{increase}} 500 million (2023)<ref>{{cite web|url=https://ilostat.ilo.org/data/ |title=Labor Market Data |publisher=International Labour Organization |website=ilo.org |access-date=4 January 2025}}</ref> | unemployment = {{plainlist| * 7.8% (2023)<ref>{{cite web|url=https://databank.worldbank.org/source/world-development-indicators |title=World Development Indicators |publisher=World Bank |website=worldbank.org |access-date=4 January 2025}}</ref>}} | industries = {{hlist | Mining | Oil and gas | Agribusiness | Tourism | Textiles | Construction | Telecommunications | Manufacturing}} | exports = $720 billion (2023 estimate)<ref name="outlook"/> | export-goods = crude oil, gold, diamonds, agricultural products, minerals | export-partners = {{plainlist| * {{flag|China}} 15% * {{flag|European Union}} 10% * {{flag|United States}} 8% * {{flag|India}} 7% * {{flag|UAE}} 5% * (2023 estimate)<ref name="obs">{{cite web|url=https://oec.world/en/profile/continent/africa |title=Trade Profile: Africa |publisher=The Observatory of Economic Complexity |website=oec.world |access-date=4 January 2025}}</ref>}} | imports = $800 billion (2023 estimate)<ref name="outlook"/> | import-goods = machinery, electronics, vehicles, food, medical supplies | import-partners = {{plainlist| * {{flag|China}} 18% * {{flag|European Union}} 14% * {{flag|India}} 8% * {{flag|United States}} 6% * {{flag|Turkey}} 4% * (2023 estimate)<ref name="obs"/>}} }} {{World economy}} The continent of Africa has a diversified developing economy across the second-largest continental land-mass in the world. It is the world's 5th-largest continental economy with 54 national economies and a large informal economy. With a population of 1.47 billion, the African economy generates $2.83 trillion in nominal gross domestic product (GDP) and over $10 trillion in purchasing power parity (PPP) GDP. It is home to many of the world's fastest-growing economies due to its abundant emerging markets.<ref>{{cite web|url=https://www.imf.org/external/datamapper/NGDPD@WEO/AFQ/DZA/ZAF/MAR/NGA/EGY?year=2018 |title=GDP, current prices |website=International Monetary Fund}}</ref><ref>{{cite web |date=22 June 2016 |title=Rise of the African opportunity |url=http://www.slideshare.net/KimberleeLuce/rise-of-the-african-opportunity |work=Boston Analytics}}</ref> They are economically integrated within their supranational organization, the African Union (AU).<ref>{{Cite web |title=Agenda 2063: The Africa We Want. |url=https://au.int/en/agenda2063/overview |website=African Union}}</ref><ref name="worldbank.org">{{Cite web|url=https://www.worldbank.org/ext/en/region/afr|title=Africa | World Bank Group|website=www.worldbank.org}}</ref>
It is the least wealthy inhabited continent per capita and second-least wealthy by total wealth, ahead of Oceania. Scholars have attributed this to different factors including geography, climate, corruption, as well as colonialism and neocolonialism.<ref name="Africa Slow">{{cite journal |last1=Collier |first1=Paul |last2=Gunning |first2=Jan Willem |date=1 August 1999 |title=Why Has Africa Grown Slowly? |journal=Journal of Economic Perspectives |volume=13 |issue=3 |pages=3–22 |doi=10.1257/jep.13.3.3 |issn=0895-3309 |doi-access=free}}</ref><ref>{{cite journal |last1=Bayeh |first1=Endalcachew |date=February 2015 |title=The political and economic legacy of colonialism in the post-independence African states |journal=International Journal in Commerce, IT & Social Sciences |volume=2 |issue=2 |pages=89–93 |doi=10.4000/poldev.78 |s2cid=198939744 |doi-access=free}}</ref> Amid this low concentration of wealth, economic expansion and a large youthful population make Africa a large consumer market. Africa has a large quantity of natural resources. The largest sectors of the African economy have been agriculture, trade, and industry. The most developed regions are North Africa, West Africa and Southern Africa.<ref name="economist.com">{{cite news| url=https://www.economist.com/leaders/2011/12/03/africa-rising | newspaper=The Economist | title=Africa rising | date=3 December 2011}}</ref><ref>{{Cite news|url=http://globalpublicsquare.blogs.cnn.com/2013/01/22/get-ready-for-an-africa-boom/|title=Get ready for an Africa boom|access-date=2017-09-12|language=en|archive-date=12 September 2017|archive-url=https://web.archive.org/web/20170912191324/http://globalpublicsquare.blogs.cnn.com/2013/01/22/get-ready-for-an-africa-boom/}}</ref> == History == {{further|Economic history of Africa|Scramble for Africa|Industrialisation in Africa}}
=== Early history === [[File:Market scene from the Old Kingdom of Egypt.jpg|thumb|right|Old Kingdom market scene: Two of the customers are seen carrying little boxes on their shoulders, suspected to have contained pieces of metal used as payment.]] Precolonial African economies were often based on agriculture, pastoralism, or trade, with the relative scarcity of factors of production (land, labour, and capital) determining their organisation.<ref>{{Cite book |last=Green |first=Erik |title=Handbook of African Economic Development |year=2024 |chapter=Chapter 4: Pre-colonial African economies |access-date=2025-08-17 |chapter-url=https://www.elgaronline.com/edcollchap/book/9781800885806/book-part-9781800885806-11.xml}}</ref>{{Reference page|page=42}} Common industries included textile manufacturing and metallurgy, although foreign trade is thought to have negated domestic production.<ref>{{Cite journal |last=Thornton |first=John |date=1990 |title=Precolonial African Industry and the Atlantic Trade, 1500-1800 |url=https://www.jstor.org/stable/3601886 |journal=African Economic History |issue=19 |pages=1–19 |doi=10.2307/3601886 |issn=0145-2258 |jstor=3601886 |url-access=subscription}}</ref>
For millennia, Africa's economy has been diverse, driven by extensive trade routes that developed between cities and kingdoms. Some trade routes were overland, some involved navigating rivers, still others developed around port cities. Large African empires became wealthy due to their trade networks, for example Ancient Egypt, Nubia, Mali, Ashanti, the Oyo Empire and Ancient Carthage. Some parts of Africa had close trade relationships with Arab kingdoms, and by the time of the Ottoman Empire, Africans had begun converting to Islam in large numbers. This development, along with the economic potential in finding a trade route to the Indian Ocean, brought the Portuguese to sub-Saharan Africa as an imperial force. Colonial interests created new industries to feed European appetites for goods such as palm oil, rubber, cotton, precious metals, spices, cash crops other goods, and integrated especially the coastal areas with the Atlantic economy.<ref>{{Cite web|url=https://www.aehnetwork.org/european-trade-colonialism-and-human-capital-accumulation-in-senegal-gambia-and-western-mali-1770-1900/|title=European Trade, Colonialism, and Human Capital Accumulation in Senegal, Gambia and Western Mali, 1770–1900 – African Economic History Network|website=www.aehnetwork.org|language=en-US|access-date=2017-08-17}}</ref>
[[File:Gold Stater of Pharaoh Nektanebo II.jpg|left|thumb|Gold stater of Nectanebo II: reverse with hieroglyphs ''nfr-nb.'' It is the first coin minted in Egypt, c. 360 BC.<ref>{{Cite web |last=Museum |first=Egypt |date=2022-07-22 |title=Gold in Ancient Egypt |url=https://egypt-museum.com/gold-in-ancient-egypt/ |access-date=2025-12-30 |website=Egypt Museum |language=en-US}})</ref>]]
A significant factor on economic development was the gain of human capital by the elite. Between the 14th and 20th centuries, it can be observed that in regions that had more violence within the elite (and hence higher chances to die at a younger age), the elite invested less education. Therefore, their numeracy (as a measure of human capital) tended to be lower than in less safe countries and vice versa. According to economic historians Joerg Baten and Kleoniki Alexopoulou, this can explain the difference in economic development between the African regions.<ref>{{Cite journal|last1=Baten|first1=Jörg|last2=Alexopoulou|first2=Kleoniki|author-link1=Jörg Baten|author-link2=Kleoniki Alexopoulou|title=Elite violence and elite numeracy in Africa from 1400 CE to 1950 CE.|journal=}}</ref>
=== Colonial period === The Berlin Conference of 1884–85 regulated European colonization and trade in Africa during the Imperialism period, and coincided with Germany's sudden emergence as an imperial power. The conference ushered in a period of heightened colonial activity by European powers, while simultaneously eliminating most existing forms of African autonomy and self-governance.{{Citation needed|date=January 2026}}
Under colonial rule, the plantation system of farming was widely introduced in order to grow large quantities of cash crops, and employing cheap (often forced) African labour for export to European countries. This marked a governmental shift toward capitalistic industrial production into Africa, severely de-centring and deteriorating traditional African markets such as salt, textiles, ironwork, and ceramics. Opposed to agricultural productions for community sustenance or local markets, large-scale monopolized production for export became the primary farming practice and colonial economic focus. This substituted seasonal biodiverse crop rotations and handling with monocultures and plantations, further eroding and depleting nutrients from large plots of fertile land. This included crops such as indigo, sugar, coffee, tea, tobacco, palm oil, and rubber. Mining for gems and precious metals such as gold was developed in a similar way by wealthy European entrepreneurs such as Cecil Rhodes. The implementation and effects of these colonial policies could be brutal, as land dispossession, physical violence, and economic constraint forced Africans into labour for the purpose of export and economic production. One extreme example of exploitation of Africans during this period is the Congo Free State, administered under a form of "company rule". The Belgians, under Leopold II of Belgium, allowed businesses to use forced labour as they saw fit. The brutal conditions, famine and disease ended in the deaths of an estimated 10 million Congolese between 1885 and 1908.{{Citation needed|date=May 2026}}
Colonial economic policies favoured open economies, focused on the immediate export of raw materials with little investment into growing domestic manufacturing.<ref>{{Cite journal |last1=Ocheni |first1=Stephen |last2=Nwankwo |first2=Basil C. |date=2012 |title=Analysis of colonialism and its impact on Africa |journal=Cross Cultural Communication |volume=8 |issue=3 |pages=51}}</ref><ref>{{Cite book |last=Green |first=Erik |title=Handbook of African Economic Development |year=2024 |chapter=Chapter 4: Pre-colonial African economies |access-date=2025-08-17 |chapter-url=https://www.elgaronline.com/edcollchap/book/9781800885806/book-part-9781800885806-11.xml}}</ref> Starting in the 1920s, colonial administrations began rapid industrialisation at the expense of local needs, disrupting traditional agrarian economies and forcing people into exploitative labour markets for sectors such as mining and large-scale farming.<ref>{{Cite book |last=Green |first=Erik |title=Handbook of African Economic Development |year=2024 |chapter=Chapter 4: Pre-colonial African economies |access-date=2025-08-17 |chapter-url=https://www.elgaronline.com/edcollchap/book/9781800885806/book-part-9781800885806-11.xml}}</ref><ref>{{Cite journal |last=Ochonu |first=Moses |date=2013 |title=African Colonial Economies: Land, Labor, and Livelihoods |url=https://onlinelibrary.wiley.com/doi/abs/10.1111/hic3.12031 |journal=History Compass |language=en |volume=11 |issue=2 |pages=91–103 |doi=10.1111/hic3.12031 |issn=1478-0542 |url-access=subscription}}</ref> These industries further affected familial policy and home economies, as mining and agriculture industries employed African workers in declared "white only" geographical areas.<ref>{{Cite journal |last=Rabe|first=Marlize|date=2017-09-01|title=Care, Family Policy and Social Citizenship in South Africa|url=https://doi.org/10.3138/jcfs.48.3.327|journal=Journal of Comparative Family Studies|volume=48|issue=3|pages=327–338|doi=10.3138/jcfs.48.3.327|issn=0047-2328|url-access=subscription}}</ref> Racial segregation allowed companies to justify paying Black workers "bachelor wages" which were not enough to support an entire family, as workers were forced to live in close proximity to their employment with restriction on their contact with those who did not work in the townships (typically mothers and children). <ref>{{Cite journal |last=Mgaya|first=Edward Simon|date=2025-06-20|title=Labour scarcity and colonial labour strategies (and the Africans' response) in German East Africa, 1885–1914|journal=Cogent Arts & Humanities|volume=12|issue=1|article-number=2522893 |doi=10.1080/23311983.2025.2522893|issn=2331-1983|doi-access=free}}</ref> This meant that Black laborers were separated from the rest of their families due to capitalistic and racially discriminatory policies, normalizing male labour migrancy in African families.[[File:African countries by GDP (PPP) per capita in 2023.png|thumb|African countries by GDP (PPP) per capita in 2023]]
=== Post-colonial period ===
{{multiple image | width = 250 | direction = vertical | image1 = EGP 1 Pound 1967 (Front).png | class1 = bg-transparent | image2 = EGP_1_Pound_1967_(Back).png | class2 = bg-transparent | footer = Obverse and reverse of the 1967 issue of E£1 banknote }}
After Africa began decolonising in 1960, post-colonial governments implemented various policies aiming to grow their economies via state-led industrialisation to correct perceived market-failures, often advised by aid donors or international bodies such as the World Bank.<ref name="Arnold-2005">{{Cite encyclopedia |title=Industrialisation and Development |encyclopedia=Encyclopedia of African History 3-Volume Set |publisher=Routledge |url=https://books.google.com/books?id=umyHqvAErOAC&q=historiography |last=Arnold |first=Guy |date=2005 |language=en |isbn=978-1-135-45670-2}}</ref> A common policy was import-substitution (the replacement of imports with domestic products via protectionist policies),<ref>{{Citation |last=Mathekga |first=Jerry Mmanoko |title=Industrialisation and Decolonisation of the Western Development Paradigm in Africa |date=2025 |work=Colonial Heritage and the Socio-Economic Development of Africa |pages=229–244 |editor-last=Yuni |editor-first=Denis Nfor |url=https://doi.org/10.1007/978-3-031-73695-7_12 |access-date=2025-08-12 |place=Cham |publisher=Springer Nature Switzerland |language=en |doi=10.1007/978-3-031-73695-7_12 |isbn=978-3-031-73695-7 |editor2-last=Iloh |editor2-first=Emeka C. |editor3-last=Ngang |editor3-first=Carol Chi |url-access=subscription}}</ref><ref>{{Cite journal |last1=Ajakaiye |first1=Olu |last2=Page |first2=John |date=2012 |title=Industrialisation and Economic Transformation in Africa: Introduction and Overview |url=https://academic.oup.com/jae/article-abstract/21/suppl_2/ii3/693930?redirectedFrom=fulltext&login=true |journal=Journal of African Economies |volume=21 |issue=2 |pages=ii3–ii18 |doi=10.1093/jae/ejr049 |url-access=subscription}}</ref> but governments focused on exporting raw materials in order to gain the capital to industrialise, and countries remained as suppliers of raw materials with little industrial development.<ref name="Arnold-2005" /> While import-substitution policies initially led to growths in manufacturing, firms struggled to compete globally without heavy protection, and exports were low which tightened the balance of payments.<ref>{{Citation |last=Mamo |first=Ayalew |title=Industrial Policy, the State, and Late Industrialisation in Africa |date=2024 |work=The Political Economy of Chinese FDI in Africa: Productive FDI and Industrialisation |pages=25–85 |editor-last=Mamo |editor-first=Ayalew |url=https://doi.org/10.1007/978-3-031-74877-6_2 |access-date=2025-08-12 |series=Palgrave Studies in African and Development Economics |place=Cham |publisher=Springer Nature Switzerland |language=en |doi=10.1007/978-3-031-74877-6_2 |isbn=978-3-031-74877-6 |url-access=subscription}}</ref>
In the 1980s, amid the neoliberalism wave of the Washington Consensus, international financial institutions such as the World Bank and International Monetary Fund (IMF) led a neo-classical 'revolution' against industrial policy,<ref>{{Citation |last=Mamo |first=Ayalew |title=Industrial Policy, the State, and Late Industrialisation in Africa |date=2024 |work=The Political Economy of Chinese FDI in Africa: Productive FDI and Industrialisation |pages=25–85 |editor-last=Mamo |editor-first=Ayalew |url=https://doi.org/10.1007/978-3-031-74877-6_2 |access-date=2025-08-12 |series=Palgrave Studies in African and Development Economics |place=Cham |publisher=Springer Nature Switzerland |language=en |doi=10.1007/978-3-031-74877-6_2 |isbn=978-3-031-74877-6 |url-access=subscription}}</ref> citing "significant government failures" and debt crises, arguing that markets better allocate resources and that trade liberalisation would lead to development.<ref>{{Citation |last=Ndhlovu |first=Emmanuel |title=Conclusion: Agriculture: Africa's Engine for Development and Prospects for Industrialisation |date=2025 |work=Agriculture, Autonomous Development, and Prospects for Industrialization in Africa |pages=303–318 |editor-last=Ndhlovu |editor-first=Emmanuel |url=https://doi.org/10.1007/978-3-031-84992-3_17 |access-date=2025-08-12 |place=Cham |publisher=Springer Nature Switzerland |language=en |doi=10.1007/978-3-031-84992-3_17 |isbn=978-3-031-84992-3 |url-access=subscription}}</ref> The 1980s and '90s saw widespread deindustrialisation,<ref>{{Cite journal |last1=Morris |first1=Mike |last2=Fessehaie |first2=Judith |date=2014-03-01 |title=The industrialisation challenge for Africa: Towards a commodities based industrialisation path |url=https://doi.org/10.1016/j.joat.2014.10.001 |journal=Journal of African Trade |language=en |volume=1 |issue=1–2 |pages=25–36 |doi=10.1016/j.joat.2014.10.001 |hdl=10419/194329 |issn=2214-8523 |hdl-access=free}}</ref><ref>{{Cite journal |last1=Gillespie |first1=Tom |last2=Schindler |first2=Seth |date=2022-10-02 |title=Africa's new urban spaces: deindustrialisation, infrastructure-led development and real estate frontiers |url=https://doi.org/10.1080/03056244.2023.2171284 |journal=Review of African Political Economy |volume=49 |issue=174 |pages=531–549 |doi=10.1080/03056244.2023.2171284 |issn=0305-6244|url-access=subscription }}</ref><ref>{{Cite journal |last=Tregenna |first=Fiona |date=2023 |title=Can Africa Run? Industrialisation and Development in Africa |url=https://www.jstor.org/stable/48739492 |journal=Africa Development |volume=48 |issue=2 |pages=1–32 |issn=0850-3907 |jstor=48739492}}</ref> and industrial production as a share of GDP declined from the 1980s onwards.<ref>{{Cite journal |last1=Ajakaiye |first1=Olu |last2=Page |first2=John |date=2012 |title=Industrialisation and Economic Transformation in Africa: Introduction and Overview |url=https://academic.oup.com/jae/article-abstract/21/suppl_2/ii3/693930?redirectedFrom=fulltext&login=true |journal=Journal of African Economies |volume=21 |issue=2 |pages=ii3–ii18 |doi=10.1093/jae/ejr049 |url-access=subscription}}</ref>
=== 21st century === The dawn of the African economic boom (which is in place since the 2000s) has been compared to the reform and opening up that had emerged in China since late 1970s,<ref>{{Cite news|url=https://www.economist.com/leaders/2011/12/03/africa-rising|title=Africa rising|date=2011-12-03|newspaper=The Economist|access-date=2017-08-17|issn=0013-0613}}</ref> though high growth rates were largely derived from high commodity prices and did little to reduce poverty.<ref>{{Cite journal |last1=Morris |first1=Mike |last2=Fessehaie |first2=Judith |date=2014-03-01 |title=The industrialisation challenge for Africa: Towards a commodities based industrialisation path |url=https://doi.org/10.1016/j.joat.2014.10.001 |journal=Journal of African Trade |language=en |volume=1 |issue=1–2 |pages=25–36 |doi=10.1016/j.joat.2014.10.001 |hdl=10419/194329 |issn=2214-8523 |hdl-access=free}}</ref> As of 2013, the Multilateral Debt Relief Initiative (MDRI) has given partial debt relief to 30 African countries.<ref>{{cite web |date=10 January 2013 |title=Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative |url=http://www.imf.org/external/np/exr/facts/hipc.htm |access-date=1 March 2013 |publisher=IMF}}</ref> In 2013, Africa was home to seven of the world's fastest-growing economies.<ref>{{Cite news|url=https://www.ft.com/content/8968cbee-7f45-11e2-89ed-00144feabdc0|title=Africa calling|website=Financial Times|date=10 March 2013 }}</ref> In the 21st century China and India have been increasingly important trade partners.<ref>{{cite web |title=Economic Report on Africa 2012 |url=http://www.uneca.org/sites/default/files/publications/era2012_eng_fin.pdf |archive-url=https://web.archive.org/web/20140314195432/http://www.uneca.org/sites/default/files/publications/era2012_eng_fin.pdf |archive-date=14 March 2014 |access-date=2 March 2013 |publisher=United Nations Economic Commission for Africa (UNECA) |page=44}}</ref>
As of 2018, Nigeria was the biggest economy in Africa by nominal GDP, followed by South Africa; in terms of PPP, Egypt was second biggest after Nigeria.<ref name="imf.org">{{cite web|url=http://www.imf.org/external/pubs/ft/weo/2015/02/weodata/weorept.aspx?pr.x=38&pr.y=9&sy=2015&ey=2019&scsm=1&ssd=1&sort=country&ds=.&br=1&c=694&s=NGDPD,NGDPDPC,PPPGDP,PPPPC&grp=0&a=|title=Report for Selected Countries and Subjects|work=IMF.org|access-date=9 April 2017}}</ref> Equatorial Guinea has Africa's highest GDP per capita. Oil-rich countries such as Algeria, Libya and Gabon, and mineral-rich Botswana have emerged among the top economies since the 21st century, while Zimbabwe and the Democratic Republic of Congo are potentially among the world's richest nations by natural resources, but have sunk into the list of the world's poorest nations due to pervasive political corruption, warfare, and emigration.<ref>{{Cite web|title=Overview|url=https://www.worldbank.org/en/country/botswana/overview|access-date=2021-07-07|website=World Bank|language=en}}</ref><ref>{{Cite web|date=2020-01-28|title=Botswana – an African economic miracle?|url=https://blogs.lse.ac.uk/internationaldevelopment/2020/01/28/botswana-an-african-economic-miracle/|access-date=2021-07-07|website=LSE International Development}}</ref> The establishment of the African Continental Free Trade Area by the African Union in 2018 intended to boost business activities between member states and within the continent, and to reduce too much reliance on importation of finished products and raw materials in to the continent.<ref>{{Cite web |title=AfCFTA |url=https://au.int/en/cfta |archive-url=https://web.archive.org/web/20201019085136/https://au.int/en/cfta |archive-date=19 October 2020 |access-date=27 May 2020}}</ref>
In response to the COVID-19 pandemic, fiscal stimulus packages in African countries through to mid-2020 amounted to roughly 1–2% of GDP, with monetary stimulus amounting to about 2% of GDP, close to the IMF's global average for low-income developing nations.<ref name="Bank-2021">{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/economic-report-finance-in-africa-green-smart-inclusive-private-sector-development |title=Finance in Africa: for green, smart and inclusive private sector development |date=2021-11-18 |publisher=European Investment Bank |isbn=978-92-861-5063-0 |language=EN}}</ref><ref>{{Cite web |title=World Economic Situation Prospects |url=https://www.un.org/development/desa/dpad/wp-content/uploads/sites/45/WESP2021_CH3.pdf |url-status=live |archive-url=https://web.archive.org/web/20210126153559/https://www.un.org/development/desa/dpad/wp-content/uploads/sites/45/WESP2021_CH3.pdf |archive-date=26 January 2021}}</ref><ref>{{Cite web |title=Policy Responses to COVID19 |url=https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 |access-date=2021-12-06 |website=IMF |language=en}}</ref> As African nations struggled to address the health and economic repercussions of the pandemic, the average fiscal deficit throughout Africa increased from 5% of GDP in 2019 to over 8% in 2020, increasing government borrowing which African countries have less capacity to absorb than other developed economies.<ref name="Bank-2021" /><ref>{{Cite news |title=The territorial impact of COVID-19: Managing the crisis and recovery across levels of government |url=https://www.oecd.org/coronavirus/policy-responses/the-territorial-impact-of-covid-19-managing-the-crisis-and-recovery-across-levels-of-government-a2c6abaf/ |access-date=2021-12-06 |website=OECD |language=en}}</ref> Despite this, African private investment was steady in 2020.<ref name="Bank-2022">{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/finance-in-africa-navigating-the-financial-landscape-in-turbulent-times |title=Finance in Africa – Navigating the financial landscape in turbulent times |date=2022-10-19 |publisher=European Investment Bank |isbn=978-92-861-5382-2 |language=EN}}</ref>
Sub-Saharan Africa was severely harmed when government revenue declined from 22% of GDP in 2011 to 17% in 2021. 15 African nations hold significant debt risk, and as of 2022 seven were in financial crisis according to the IMF. The region received IMF Special Drawing Rights of $23 billion in 2021 to assist critical public spending.<ref name="Bank-2022" /><ref>{{Cite web |last1=Selassie |first1=Abebe Aemro |last2=Department |first2=Shushanik Hakobyan IMF African |title=Six Charts Show the Challenges Faced by Sub-Saharan Africa |url=https://www.imf.org/en/News/Articles/2021/04/12/na041521-six-charts-show-the-challenges-faced-by-sub-saharan-africa |access-date=2022-11-18 |website=IMF |language=en}}</ref><ref>{{Cite web |date=21 September 2022 |title=Africa's Rapid Economic Growth Hasn't Fully Closed Income Gaps |url=https://www.imf.org/en/Blogs/Articles/2022/09/20/africas-rapid-economic-growth-hasnt-fully-closed-income-gaps |access-date=2022-11-18 |website=IMF |language=en}}</ref> In a recent report, female-led businesses were found more likely to invest in innovation, export goods and services, and provide employee training, while also having lower bankruptcy rates.<ref name="Bank-2023">{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/20230088-finance-in-africa |title=Finance in Africa: Uncertain times, resilient banks: African finance at a crossroads |date=2023-09-27 |publisher=European Investment Bank |isbn=978-92-861-5598-7 |language=EN}}</ref><ref>{{Cite news |last=Blake |first=Jessica |date=2023-04-12 |title=Comment: Africa has the highest proportion of women entrepreneurs. How can we make sure they get funded? |url=https://www.reuters.com/business/sustainable-business/comment-africa-has-highest-proportion-women-entrepreneurs-how-can-we-make-sure-2023-04-12/ |access-date=2023-10-13 |work=Reuters |language=en-UK}}</ref><ref>{{Cite web |date=2020-12-15 |title=The Business Case for Investing in African Women – Women's World Banking |url=https://www.womensworldbanking.org/insights/the-business-case-for-investing-in-african-women/ |access-date=2023-10-13 |website=www.womensworldbanking.org |language=en-US}}</ref><ref>{{Cite journal |last1=Liu |first1=Yu |last2=Wei |first2=Siqi |last3=Xu |first3=Jian |date=November 2021 |title=COVID-19 and Women-Led Businesses around the World |journal=Finance Research Letters |volume=43 |doi=10.1016/j.frl.2021.102012 |issn=1544-6123 |pmc=8596885 |pmid=34803532 |article-number=102012}}</ref><ref>{{Cite web |title=COVID-19 Impacts on Women in Emerging Economies |url=https://www.gemconsortium.org/images/media/covid-19-impacts-on-women-in-emerging-economies-1644427445.pdf}}</ref> According to a 2024 report, Africa's share of global GDP has stagnated at 3.1% over the last two decades, with slow income convergence with developed nations,<ref>{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/20240033-finance-in-africa |title=Finance in Africa: Unlocking investment in an era of digital transformation and climate transition |date=2024-11-07 |publisher=European Investment Bank |isbn=978-92-861-5767-7 |language=EN}}</ref><ref>{{Cite web |date=15 May 2023 |title=African Economic Outlook 2024 |url=https://www.afdb.org/en/knowledge/publications/african-economic-outlook}}</ref> while 90% of production exports in Africa were unprocessed goods.<ref>{{Cite journal |last1=Ongo Nkoa |first1=Bruno Emmanuel |last2=Fonguen-Kong-Ngoh |first2=Arnaud Barnabé |date=2024-10-01 |title=Industrialisation in Africa: The role of energy transition |url=https://www.sciencedirect.com/science/article/pii/S030142152400291X |journal=Energy Policy |volume=193 |doi=10.1016/j.enpol.2024.114271 |issn=0301-4215 |url-access=subscription |article-number=114271 |bibcode=2024EnPol.19314271O }}</ref>
== Economic development == The seemingly intractable nature of Africa's poverty has led to debate concerning its root causes. Endemic warfare and unrest, widespread corruption, and despotic regimes are both causes and effects of the continued economic problems. The decolonization of Africa was fraught with instability aggravated by cold war conflict. Since the mid-20th century, the Cold War and increased corruption, poor governance, disease and despotism have also contributed to Africa's poor economy.<ref>{{Cite journal|last=Hyden|first=Goran|date=2007-10-23|title=Governance and poverty reduction in Africa|journal=Proceedings of the National Academy of Sciences|volume=104|issue=43|pages=16751–16756|doi=10.1073/pnas.0700696104 |pmid=17942700 |pmc=2040419 |doi-access=free |bibcode=2007PNAS..10416751H }}</ref><ref name="Lange-2004">{{cite thesis |last1=Lange |first1=Matthew Keith |title=The British colonial lineages of despotism and development |year=2004 |id={{ProQuest|305225106}} |oclc=61140381 }}</ref><ref>{{cite journal |last1=Bhattacharyya |first1=S. |title=Root Causes of African Underdevelopment |journal=Journal of African Economies |date=1 November 2009 |volume=18 |issue=5 |pages=745–780 |doi=10.1093/jae/ejp009 }}</ref><ref>{{cite journal |last1=Awojobi |first1=Oladayo Nathaniel |title=CORRUPTION AND UNDERDEVELOPMENT IN AFRICA: A DISCOURSE APPROACH |journal=International Journal of Economics, Commerce and Management |volume=2 |issue=10 |date=October 2014 |url=https://ijecm.co.uk/wp-content/uploads/2014/10/21023.pdf }}</ref>
According to ''The Economist'', the most important factors are government corruption, political instability, socialist economics, and protectionist trade policy.<ref name="The Economist 2020">{{Cite news |date=28 March 2020 |title=Special Report: The African Century |url=https://www.economist.com/special-report/2020-03-28 |newspaper=The Economist}}</ref> Oluwatosin Adeniyi has lamented the lack of "African economics" as a distinct 'Africanised' discipline in the same vein as African history or African psychology.<ref>{{Cite journal |last=Adeniyi |first=Oluwatosin |date=2024-08-01 |title=Whither "African Economics" Imaginaries? Eleven Precepts on Its (Im)possibility |url=https://doi.org/10.1177/00020397241262795 |journal=Africa Spectrum |language=EN |volume=59 |issue=2 |pages=157–179 |doi=10.1177/00020397241262795 |issn=0002-0397}}</ref>
=== Infrastructure === [[File:Map of Trans-African Highways.PNG|thumb|350px|The Trans-African Highway network]]
According to the researchers at the Overseas Development Institute, the lack of infrastructure in many developing countries represents one of the most significant limitations to economic growth and achievement of the Millennium Development Goals (MDGs).<ref name="ODI1">{{Cite web |author=Christian K.M. Kingombe |date=2011 |url=http://www.odi.org.uk/resources/details.asp?id=5666&title=latin-america-medellin-colombia-microfinance-post-washington-consensus-microcredit-microenterprise-local-development |title=Mapping the new infrastructure financing landscape |archive-url=https://web.archive.org/web/20120918135821/http://www.odi.org.uk/resources/details.asp?id=5666&title=latin-america-medellin-colombia-microfinance-post-washington-consensus-microcredit-microenterprise-local-development |archive-date=18 September 2012}}. London: Overseas Development Institute</ref> Infrastructure investments and maintenance can be very expensive, especially in such areas as landlocked, rural and sparsely populated countries in Africa.<ref name=ODI1 />
It has been argued that infrastructure investments contributed to more than half of Africa's improved growth performance between 1990 and 2005 and increased investment is necessary to maintain growth and tackle poverty.<ref name=ODI1 /> The returns to investment in infrastructure are very significant, with on average 30–40% returns for telecommunications (ICT) investments, over 40% for electricity generation, and 80% for roads.<ref name=ODI1 />
In Africa, it is argued that to meet the MDGs by 2015, infrastructure investments would need to reach about 15% of GDP (around $93 billion a year).<ref name=ODI1 /> Currently, the source of financing varies significantly across sectors.<ref name=ODI1 /> Some sectors are dominated by state spending, others by overseas development aid (ODA) and yet others by private investors.<ref name=ODI1 /> In sub-Saharan Africa, the state spends around $9.4 billion out of a total of $24.9 billion.<ref name=ODI1 />
In irrigation, sub-Saharan African states represent almost all spending; in transport and energy a majority of investment is state spending; in Information and communication technologies and water supply and sanitation, the private sector represents the majority of capital expenditure.<ref name=ODI1 /> Overall, aid, the private sector and non-OECD financiers between them exceed state spending.<ref name=ODI1 /> The private sector spending alone equals state capital expenditure, though the majority is focused on ICT infrastructure investments.<ref name=ODI1 /> External financing increased from $7 billion (2002) to $27 billion (2009). China, in particular, has emerged as an important investor.<ref name=ODI1 />
=== Colonialism === {{Main|Colonisation of Africa}}
[[File:Map of railways in Africa 1899.jpg|thumb|350px|Railway map of Africa, including tracks proposed and under construction, ''The Statesman's Yearbook'', 1899]]
The principal aim of colonial rule in Africa by European colonial powers was to exploit natural wealth in the African continent at a low cost. Some writers, such as Walter Rodney in his book ''How Europe Underdeveloped Africa'', argue that these colonial policies are directly responsible for many of Africa's modern problems.<ref name="Lange-2004" /><ref>{{Cite web|date=2017-06-28|title=Why is Africa so poor? You asked Google – here's the answer|url=http://www.theguardian.com/commentisfree/2017/jun/28/why-africa-so-poor-google|access-date=2021-07-07|website=the Guardian|language=en}}</ref> Critics of colonialism charge colonial rule with injuring African pride, self-worth and belief in themselves. Other post-colonial scholars, most notably Frantz Fanon continuing along this line, have argued that the true effects of colonialism are psychological and that domination by a foreign power creates a lasting sense of inferiority and subjugation that creates a barrier to growth and innovation. Such arguments posit that a new generation of Africans free of colonial thought and mindset is emerging and that this is driving economic transformation.<ref>{{Cite web |author=Nick Mead |url=https://www.theguardian.com/global-development/datablog/interactive/2012/may/28/african-economic-outlook-2012 |title=African Economic Outlook 2012 |website=The Guardian |date=28 May 2012}}</ref>
Historians L. H. Gann and Peter Duignan have argued that Africa probably benefited from colonialism on balance. Although it had its faults, colonialism was probably "one of the most efficacious engines for cultural diffusion in world history".<ref>Lewis H. Gann and Peter Duignan, ''The Burden of Empire: A Reappraisal of Western Colonialism South of the Sahara''</ref> These views, however, are controversial and are rejected by some who, on balance, see colonialism as bad. The economic historian David Kenneth Fieldhouse has taken a kind of middle position, arguing that the effects of colonialism were actually limited and their main weakness wasn't in deliberate underdevelopment but in what it failed to do.<ref>D. K. Fieldhouse, ''The West and the Third World''</ref> Niall Ferguson agrees with his last point, arguing that colonialism's main weaknesses were ''sins of omission''.<ref>Niall Ferguson, Empire: How Britain Made the Modern World and Colossus: The Rise and Fall of the American Empire</ref> Analysis of the economies of African states finds that independent states such as Liberia and Ethiopia did not have better economic performance than their post-colonial counterparts. In particular the economic performance of former British colonies was better than both independent states and former French colonies.<ref>{{Cite web |title= |url=http://pure.au.dk:80/portal-asb-student/files/41656700/Alexandra_Hrituleac_thesis_1_DEC.pdf |archive-url=https://web.archive.org/web/20161213041905/http://pure.au.dk:80/portal-asb-student/files/41656700/Alexandra_Hrituleac_thesis_1_DEC.pdf |archive-date=2016-12-13 |access-date=2025-10-31 |website=pure.au.dk}}</ref>
Africa's relative poverty predates colonialism. Jared Diamond argues in ''Guns, Germs, and Steel'' that Africa has always been poor due to a number of ecological factors affecting historical development. These factors include low population density, the tsetse fly, malaria, lack of navigable rivers, and the north–south orientation of Africa's geography.<ref>1997: ''Guns, Germs, and Steel: The Fates of Human Societies''. W.W. Norton & Co. ({{ISBN|978-0-099-30278-0}}). Also published with the title ''Guns, Germs and Steel: A Short History of Everybody for the Last 13,000 Years''.</ref> However Diamond's theories have been criticized by some including James Morris Blaut as a form of environmental determinism.<ref name="Blaut2000EightEurocentricHistorians">{{cite book | last = James M. Blaut| title = Eight Eurocentric Historians |edition= 10 August 2000|page= 228 | publisher = The Guilford Press| isbn= 1-57230-591-6|year=2000|url=https://books.google.com/books?id=ktn7LmLgc6oC|access-date=2008-08-05}}</ref> Historian John K. Thornton argues that sub-Saharan Africa was relatively wealthy and technologically advanced until at least the seventeenth century.<ref>Africa and Africans in the Formation of the Atlantic World, 1400–1680 (New York and London: Cambridge University Press, 1992, second expanded edition, 1998).</ref> Some scholars who believe that Africa was generally poorer than the rest of the world throughout its history make exceptions for certain parts of Africa. Acemoglue and Robinson, for example, argue that most of Africa has always been relatively poor, but "Aksum, Ghana, Songhay, Mali, [and] Great Zimbabwe ... were probably as developed as their contemporaries anywhere in the world."<ref>Why is Africa Poor? (Economic History of Developing Regions Vol. 25: 2010)</ref> A number of people including Rodney and Joseph E. Inikori have argued that the poverty of Africa at the onset of the colonial period was principally due to the demographic loss associated with the slave trade as well as other related societal shifts.<ref>Rodney, Walter. ''How Europe Underdeveloped Africa''. London: Bogle-L'Ouverture Publications, 1972.</ref> Others such as J. D. Fage and David Eltis have rejected this view.<ref>David Eltis, ''Economic Growth and the Ending of the Transatlantic Slave Trade''</ref>
=== Language diversity === [[File:TamaleGhana2.jpg|thumb|250px|Ghana is a country with high language diversity. Asante 16%, Ewe 14%, Fante 11.6%, Boron (Brong) 4.9%, Dagomba 4.4%, Dangme 4.2%, Dagarte (Dagaba) 3.9%, Kokomba 3.5%, Akyem 3.2%, Ga 3.1%, other 31.2%.<ref>{{Cite web |title=Ghana Statistical Services. |url=https://www.statsghana.gov.gh/ghfactsheet.php?utm_source=chatgpt.com |access-date=2025-09-02 |website=www.statsghana.gov.gh}}</ref>{{AI-retrieved source|date=March 2026|checked=no}}]] thumb|right|300px|Nigeria Football Ground in 2011
African countries suffer from communication difficulties caused by language diversity. Greenberg's diversity index is the chance that two randomly selected people would have different mother tongues. Out of the most diverse 25 countries according to this index, 18 (72%) are African.<ref>{{Cite news|url=http://www.ethnologue.com/ethno_docs/distribution.asp?by=country#6|title=Summary by country|work=Ethnologue|access-date=2017-09-12}}</ref> This includes 12 countries for which Greenberg's diversity index exceeds 0.9, meaning that a pair of randomly selected people will have less than 10% chance of having the same mother tongue. In addition, the primary language of government, political debate, academic discourse, and administration is often the language of the former colonial powers, English, French, Arabic, or Portuguese, which many do not speak.{{Citation needed|date=September 2025}}
=== Trade-based theories === Dependency theory asserts that the wealth and prosperity of the superpowers and their allies in Europe, North America and East Asia is dependent upon the poverty of the rest of the world, including Africa. Economists who subscribe to this theory believe that poorer regions must break their trading ties with the developed world in order to prosper.<ref>See, for example, Frank, A. G. (1979), ''Dependent Accumulation and Underdevelopment'', New York: Monthly Review Press.; Köhler, G., and A. Tausch (2001), ''Global Keynesianism: unequal exchange and global exploitation'', Nova Publishers; Amin, S. (1976), ''Unequal Development: An Essay on the Social Formations of Peripheral Capitalism'', New York: Monthly Review Press.</ref> Modern African scholars advocate for Local economic development instead, which is the process in which business activity ''and employment'' are used to stimulate or maintain the economy, particularly through local government or community-based organizations.<ref>{{Cite journal |last1=Binns|first1=Tony|last2=Nel|first2=Etienne|date=1999|title=Beyond the development impasse: the role of local economic development and community self-reliance in rural South Africa|url=https://doi.org/10.1017/s0022278x99003067|journal=The Journal of Modern African Studies|volume=37|issue=3|pages=389–408|doi=10.1017/s0022278x99003067|issn=0022-278X|via=JSTOR}}</ref> This theory advocates for a lessened dependence on the Global North and instead on self-reliance in identifying, managing, and managing local knowledge and skills in the name of development.
Less radical theories{{By whom|date=September 2025}} suggest that economic protectionism in developed countries hampers Africa's growth. When developing countries have harvested agricultural produce at low cost, they generally do not export as much as would be expected. Abundant farm subsidies and high import tariffs in the developed world, most notably those set by Japan, the European Union's Common Agricultural Policy, and the United States Department of Agriculture, are thought to be the cause. Although these subsidies and tariffs have been gradually reduced, they remain high.{{Citation needed|date=September 2025}}
Local conditions also affect exports; state over-regulation in several African nations can prevent their own exports from becoming competitive. Research in Public Choice economics such as that of Jane Shaw suggest that protectionism operates in tandem with heavy State intervention combining to depress economic development. Farmers subject to import and export restrictions cater to localized markets, exposing them to higher market volatility and fewer opportunities. When subject to uncertain market conditions, farmers press for governmental intervention to suppress competition in their markets, resulting in competition being driven out of the market. As competition is driven out of the market, farmers innovate less and grow less food further undermining economic performance.<ref>{{cite web | url=http://www.econjournalwatch.org/pdf/Shaw%20Comment%20April%202004.pdf | title=Overlooking the Obvious in Africa | last=Shaw | first=Jane | publisher=Econ Journal Watch | date=April 2004 | access-date=2008-10-01 | archive-date=14 April 2023 | archive-url=https://web.archive.org/web/20230414170317/http://www.econjournalwatch.org/pdf/Shaw%20Comment%20April%202004.pdf }}</ref><ref>{{cite web | url=http://www.econjournalwatch.org/pdf/Pasour%20Intellectual%20Tyranny%20April%202004.pdf | title=Intellectual Tyranny of the Status Quo | last=Pasour | first=E.C. | publisher=Econ Journal Watch | date=April 2004 | access-date=2008-10-01 | archive-date=14 April 2023 | archive-url=https://web.archive.org/web/20230414170314/http://www.econjournalwatch.org/pdf/Pasour%20Intellectual%20Tyranny%20April%202004.pdf }}</ref>
=== Governance === {{Political corruption sidebar}} Although Africa and Asia had similar levels of income in the 1960s, Asia has since outpaced Africa, with the exception of a few extremely poor and war-torn countries like Afghanistan and Yemen. One school of economists argues that Asia's superior economic development lies in local investment. Corruption in Africa consists primarily of extracting economic rent and moving the resulting financial capital overseas instead of investing at home; the stereotype of African dictators with Swiss bank accounts is often accurate. University of Massachusetts Amherst researchers estimate that from 1970 to 1996, capital flight from 30 sub-Saharan countries totalled $187bn, exceeding those nations' external debts.<ref>{{cite web | url=http://www.newstatesman.com/Economy/200503140015 | title=When the money goes west | last=Wrong | first=Michela |work=New Statesman | date=2005-03-14 | access-date=2006-08-28}}</ref> Authors Leonce Ndikumana and James K. Boyce estimate that from 1970 to 2008, capital flight from 33 sub-Saharan countries totalled $700bn.<ref>{{cite news |title=Should Africa challenge its "odious debts?" |url=https://af.reuters.com/article/angolaNews/idAFL5E8ED3JD20120315 |archive-url=https://web.archive.org/web/20190508175341/https://af.reuters.com/article/angolaNews/idAFL5E8ED3JD20120315 |archive-date=8 May 2019 |work=Reuters |date=15 March 2012}}</ref>
Congolese dictator Mobutu Sese Seko became notorious for corruption, nepotism, and the embezzlement of between US$4 billion and $15 billion during his reign.<ref>{{cite magazine|last=Tharoor|first=Ishaan|title=Mobutu Sese Seko|url=http://www.time.com/time/specials/packages/article/0,28804,2097426_2097427_2097458,00.html|archive-url=https://web.archive.org/web/20111022191650/http://www.time.com/time/specials/packages/article/0,28804,2097426_2097427_2097458,00.html|archive-date=22 October 2011|series=Top 15 Toppled Dictators|magazine=Time |date=20 October 2011}}</ref><ref>{{cite news |title=How US nurtured dictators to Africa's detriment |url=https://www.iol.co.za/news/opinion/how-us-nurtured-dictators-to-africas-detriment-17744850 |work=Independent Online |date=2 November 2018}}</ref> Socialist governments influenced by Marxism, and the land reform they have enacted, have also contributed to economic stagnation in Africa. For example, the regime of Robert Mugabe in Zimbabwe, particularly the land seizures from white farmers, led to the collapse of the country's agricultural economy, which had formerly been one of Africa's strongest;<ref>{{Cite web |url=http://newzimbabwe.com/columns-40850-The+costs+of+the+Robert+Mugabe+era/columns.aspx |title=The costs of the Robert Mugabe era |access-date=6 October 2018 |archive-url=https://web.archive.org/web/20180201005250/http://www.newzimbabwe.com/columns-40850-The+costs+of+the+Robert+Mugabe+era/columns.aspx |archive-date=1 February 2018 }}</ref> Mugabe had been previously supported by the USSR and China during the Zimbabwe War of Liberation. Tanzania was left as one of the world's poorest and most aid-dependent nations, and has taken decades to recover.<ref>Skinner, Annabel (2005). Tanzania & Zanzibar. New Holland Publishers. p. 19. {{ISBN|1-86011-216-1}}.</ref> Since the abolition of the socialist one-party state in 1992 and the transition to democracy, Tanzania has experienced rapid economic growth, with growth of 6.5% in 2017.<ref>{{Cite web|title=Download entire World Economic Outlook database, October 2017|url=https://www.imf.org/external/pubs/ft/weo/2017/02/weodata/download.aspx|access-date=2021-05-27|website=www.imf.org}}</ref>
=== Foreign aid === Since 1960, Africa has received billions of dollars in aid. In the last 30 years alone, one estimate puts aid to the continent at $1.2 trillion, though distributed very unevenly across the continent. In this time, African economies have developed. Life expectancy and populations have both risen dramatically, and absolute poverty has fallen. The rise in living standards has been relatively meagre, and few African countries have achieved the rapid economic growth seen in much of Asia, in South Korea, China, Vietnam, Indonesia, India or Bangladesh, in the same period.<ref name="Nick-2022">{{Cite web |last=Nick |first=Westcott |date=2022-08-19 |title=How useful is aid to Africa? |url=https://africanarguments.org/2022/08/how-useful-is-aid-to-africa/ |access-date=2025-09-02 |website=African Arguments |language=en}}</ref>
Historically, food aid is more highly correlated with excess supply than with the needs of developing countries. Foreign aid has been an integral part of African economic development since the 1980s, according to the Economist.<ref name="economist.com" />
The aid model has been criticized for supplanting trade initiatives.<ref name="economist.com" /> Growing evidence shows that foreign aid has made the continent poorer.<ref>{{cite news| url=https://www.wsj.com/articles/SB123758895999200083 | work=The Wall Street Journal | first=Dambisa | last=Moyo | title=Why Foreign Aid Is Hurting Africa | date=21 March 2009}}</ref> One of the biggest critics of the aid development model is economist Dambisa Moyo (a Zambian economist based in the US), who introduced the Dead Aid model, which highlights how foreign aid has been a deterrent for local development.<ref>{{Cite news|url=https://www.thedailybeast.com/articles/2009/03/26/stop-aiding-africa|title=Stop Aiding Africa!|last=Moyo|first=Dambisa|date=2009-03-26|access-date=2019-05-03|language=en}}</ref>
Today, Africa faces the problem of attracting foreign aid in areas where there is potential for high income from demand. It is in need of more economic policies and active participation in the world economy. As globalization has heightened the competition for foreign aid among developing countries, Africa has been trying to improve its struggle to receive foreign aid by taking more responsibility at the regional and international level. In addition, Africa has created the Africa Action Plan in order to obtain new relationships with development partners to share responsibilities regarding discovering ways to receive aid from foreign investors.<ref>{{Cite journal|date=May 2003|title=African Action Plan|url=https://repository.uneca.org/handle/10855/38608|website=UN Economic Commission for Africa}}</ref>
Nevertheless, foreign aid to Africa also gives Africa positive effect.<ref>{{Cite web |last=Ernest |first=Blessing |date=2024-02-28 |title=Foreign Aid in Africa: Assessing Impact and Dependency - African Leadership Magazine |url=https://www.africanleadershipmagazine.co.uk/foreign-aid-in-africa-assessing-impact-and-dependency/,%20https://www.africanleadershipmagazine.co.uk/foreign-aid-in-africa-assessing-impact-and-dependency/ |access-date=2025-09-02 |language=en}}</ref> Greg Mills is director of the Brenthurst Foundation, a South African think-tank funded partly by the Oppenheimer family. Mills considers that the failure of aid to create faster development is a political failure, not an economic one.<ref name="Nick-2022" />
== Foreign trade == The African Union is the largest international economic grouping on the continent. The confederation's goals include the creation of a free trade area (established in 2018),<ref>{{Cite journal |last=Obeng-Odoom |first=Franklin |date=2020 |title=The African Continental Free Trade Area |url=https://onlinelibrary.wiley.com/doi/abs/10.1111/ajes.12317 |journal=The American Journal of Economics and Sociology |language=en |volume=79 |issue=1 |pages=167–197 |doi=10.1111/ajes.12317 |issn=1536-7150|url-access=subscription }}</ref> a customs union (African Union Passport), a single market, a central bank (African Central Bank), and a common currency (African Monetary Union), thereby establishing an economic and monetary union. The African Investment Bank is meant to stimulate development. The AU plans also include a transitional African Monetary Fund leading to an African Central Bank. Some parties support development of an even more unified United States of Africa.
International monetary and banking unions include: * Central Bank of West African States * Bank of Central African States * Common Monetary Area Major economic unions are shown in the chart below.
{{African Economic Community}}
=== Regional economic organizations === During the 1960s, Ghanaian politician Kwame Nkrumah promoted economic and political union of African countries, with the goal of independence.<ref>{{cite journal|title=2013 Guide economique du continentBourses Africaines|journal=Africa 24|year=2013|issue=8|page=60|editor1-last=Sarl}}</ref> Since then, objectives, and organizations, have multiplied. Recent decades have brought efforts at various degrees of regional economic integration. Trade between African states accounts for only 11% of Africa's total commerce as of 2012, around five times less than in Asia.<ref>{{cite journal|title=2013 Guide economique du continentBourses Africaines|journal=Africa 24 |year=2013|issue=8|page=62|editor1-last=Sarl}}</ref> Most of this intra-Africa trade originates from South Africa and most of the trade exports coming out of South Africa goes to abutting countries in Southern Africa.<ref>{{cite web|last1=Luce and Agarwal|title=Rise of the African Opportunity|date=22 June 2016 |url=http://www.slideshare.net/KimberleeLuce/rise-of-the-african-opportunity|publisher=Boston Analytics|access-date=12 July 2016}}</ref>
There are currently eight regional organizations that assist with economic development in Africa:<ref>{{cite journal|title=2013 Guide economique du continentBourses Africaines|journal=Africa 24|year=2013|issue=8|pages=64–65|editor1-last=Sarl}}</ref>
{| class="wikitable" ! Name of organization !! width=120|Date created !! Member countries !! Cumulative<br />GDP<br />(US$ millions) |- | Economic Community of West African States || 28 May 1975 || Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea-Bissau, Guinea, Ivory Coast, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo || align=right|657 |- | East African Community || 30 November 1999 || Burundi, Kenya, Uganda, Rwanda, Tanzania || align=right|232 |- | Economic Community of Central African States || 18 October 1983 || Angola, Burundi, Cameroon, Central African Republic, Congo, Democratic Republic of Congo, Gabon, Guinea, São Tomé and Príncipe, Chad || align=right|289 |- | Southern African Development Community || 17 August 1992 || Angola, Botswana, Eswatini (Swaziland), Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Democratic Republic of Congo, Seychelles, South Africa, Tanzania, Zambia, Zimbabwe || align=right|909 |- | Intergovernmental Authority on Development || 25 November 1996 || Djibouti, Ethiopia, Kenya, Uganda, Somalia, Sudan, South Sudan || align=right|326 |- | Community of Sahel-Saharan States || 4 February 1998 || Benin, Burkina Faso, Central African Republic, Comoros, Djibouti, Egypt, Eritrea, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Kenya, Liberia, Libya, Mali, Morocco, Mauritania, Niger, Nigeria, São Tomé and Príncipe, Senegal, Sierra Leone, Somalia, Sudan, Chad, Togo, Tunisia|| align=right|1,692 |- | Common Market for Eastern and Southern Africa || 5 November 1993 || Burundi, Comoros, Djibouti, Egypt, Eritrea, Eswatini (Swaziland), Ethiopia, Kenya, Liberia, Madagascar, Malawi, Mauritius, Uganda, Democratic Republic of Congo, Rwanda, Seychelles, Sudan, Zambia, Zimbabwe || align=right|1,011 |- | Arab Maghreb Union || 17 February 1989 || Algeria, Libya, Morocco, Mauritania, Tunisia || align=right|579 |}
== Economic variants == thumb|350x350px|Map of Africa by nominal GDP in billions USD (2020) {| border="0" cellspacing="0" cellpadding="0" style="width:100%;" |- |valign="top"|{{Legend|#000000|>200}} {{Legend|#002200|100–200}} {{Legend|#004400|50–100}} {{Legend|#006600|20–50}} |valign="top"| {{Legend|#008800|10–20}} {{Legend|#00AA00|5–10}} {{Legend|#00CC00|1–5}} {{Legend|#00EE00|<1}} |} After an initial rebound from the 2009 world economic crisis, Africa's economy was undermined in 2011 by the Arab uprisings. The continent's growth fell back from 5% in 2010 to 3.4% in 2011. With the recovery of North African economies and sustained improvement in other regions, growth across the continent was expected to accelerate to 4.5% in 2012 and 4.8% in 2013.{{Citation needed|date=May 2020}} Short-term problems for the world economy remained as Europe confronted its debt crisis. Commodity prices—crucial for Africa—have declined from their peak due to weaker demand and increased supply, and some could fall further. However, prices are expected to remain at levels favourable for African exporters.<ref name="African Economic Outlook-2012">{{cite web |url=http://www.africaneconomicoutlook.org/en/outlook/ |title=Economic Outlook |publisher=African Economic Outlook |date=28 May 2012 |access-date=2012-06-13 |archive-date=2 June 2012 |archive-url=https://web.archive.org/web/20120602034613/http://www.africaneconomicoutlook.org/en/outlook/ }}</ref>
=== Regions === Economic activity has rebounded across Africa. However, the pace of recovery was uneven among groups of countries and subregions. Oil-exporting countries generally expanded more strongly than oil-importing countries. West Africa and East Africa were the two best-performing subregions in 2010.<ref>{{cite web|url=http://www.oecd.org/document/16/0,3746,en_2649_33731_48794320_1_1_1_1,00.html |title=African Economic Outlook 2011 |publisher=Oecd.org |access-date=2012-06-13}}</ref>
Intra-African trade has been slowed by protectionist policies among countries and regions, and remains low at 17 percent, compared to Europe, where intra-regional trade is at 69 percent.<ref>{{Cite web|last1=Landry|first1=Zainab Usman, David|last2=Landry|first2=Zainab Usman, David|title=Economic Diversification in Africa: How and Why It Matters|url=https://carnegieendowment.org/research/2021/04/economic-diversification-in-africa-how-and-why-it-matters?lang=en|access-date=2021-07-07|website=Carnegie Endowment for International Peace|date=30 April 2021 |language=en}}</ref> Despite this, trade between countries belonging to the Common Market for Eastern and Southern Africa (COMESA), a particularly strong economic region, grew six-fold over the past decade up to 2012.<ref>{{cite web|title=Economic Report on Africa 2012|url=http://www.uneca.org/sites/default/files/publications/era2012_eng_fin.pdf|publisher=United Nations Economic Commission for Africa (UNECA)|access-date=2 March 2013|page=45|archive-date=14 March 2014|archive-url=https://web.archive.org/web/20140314195432/http://www.uneca.org/sites/default/files/publications/era2012_eng_fin.pdf}}</ref> Ghana and Kenya, for example, have developed markets within the region for construction materials, machinery, and finished products, quite different from the mining and agriculture products that make up the bulk of their international exports.<ref>{{cite web|title=Economic Report on Africa 2012|url=http://www.uneca.org/sites/default/files/publications/era2012_eng_fin.pdf|publisher=United Nations Economic Commission for Africa (UNECA)|access-date=2 March 2013|page=46|archive-date=14 March 2014|archive-url=https://web.archive.org/web/20140314195432/http://www.uneca.org/sites/default/files/publications/era2012_eng_fin.pdf}}</ref>
The African Ministers of Trade agreed in 2010 to create a Pan-Africa Free Trade Zone. This would reduce countries' tariffs on imports and increase intra-African trade, and it is hoped, the diversification of the economy overall.<ref>{{cite web|title=Economic Report on Africa 2012|url=http://www.uneca.org/sites/default/files/publications/era2012_eng_fin.pdf|publisher=United Nations Economic Commission for Africa (UNECA)|access-date=2 March 2013|page=47|archive-date=14 March 2014|archive-url=https://web.archive.org/web/20140314195432/http://www.uneca.org/sites/default/files/publications/era2012_eng_fin.pdf}}</ref>
[[File:Countries by total wealth (trillions USD), Credit Suisse.png|thumb|250px|Countries by total wealth (trillions USD), Credit Suisse]] [[File:Countries by GDP (PPP) per capita in 2020.png|thumb|right|250px|Countries by 2020 GDP (PPP) per capita<ref>Based on the IMF data. If no data was available for a country from IMF, data from the World Bank is used.</ref>]] thumb|Mean wind speed in Sub-Saharan Africa<ref name="Global Wind Atlas">{{Cite web|url=https://globalwindatlas.info/|title=Global Wind Atlas|access-date=6 December 2018}}</ref>|288x288px thumb|Global horizontal irradiation in Sub-Saharan Africa<ref name="Global Wind Atlas" />|309x309px
=== African nations === {{static row numbers}} {| class="sortable static-row-numbers static-row-header-text" style="font-size:100%;text-align: right" |- ! Country ! Total GDP (nominal) in 2019<br /> <small>(billion US$)</small><ref name="IMF">{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2020/October/select-country-group |title=World Economic Outlook Database, Octobre 2020 |publisher=IMF|access-date=2020-11-02}}</ref> ! GDP per capita in 2019<br /> <small>(US$, PPP)</small><ref name="IMF" /> ! Average annual<br />real GDP growth <br />2010–2019 (%)<ref name="IMF" /> ! HDI 2019<ref>[http://hdr.undp.org/en/media/hdr_20072008_en_complete.pdf Source] {{webarchive|url=https://web.archive.org/web/20110429033726/http://hdr.undp.org/en/media/HDR_20072008_EN_Complete.pdf |date=29 April 2011 }}, 2005</ref> |- | style="text-align:left;" | {{flagcountry|Algeria}} | {{nts|169.3}} | {{nts|11,729}} | {{nts|2.6}} | 0.748 |- | style="text-align:left;" | {{flagcountry|Angola}} | {{nts|89.4}} | {{nts|7,384}} | {{nts|1.9}} | 0.581 |- | style="text-align:left;" | {{flagcountry|Benin}} | {{nts|14.4}} | {{nts|3,423}} | {{nts|5.1}} | 0.545 |- | style="text-align:left;" | {{flagcountry|Botswana}} | {{nts|18.5}} | {{nts|17,949}} | {{nts|4.3}} | 0.735 |- | style="text-align:left;" | {{flagcountry|Burkina Faso}} | {{nts|15.7}} | {{nts|2,282}} | {{nts|5.7}} | 0.452 |- | style="text-align:left;" | {{flagcountry|Burundi}} | {{nts|3.1}} | {{nts|821}} | {{nts|2.0}} | 0.433 |- | style="text-align:left;" | {{flagcountry|Cameroon}} | {{nts|38.9}} | {{nts|3,856}} | {{nts|4.6}} | 0.563 |- | style="text-align:left;" | {{flagcountry|Cape Verde}} | {{nts|2.0}} | {{nts|7,471}} | {{nts|2.9}} | 0.665 |- | style="text-align:left;" | {{flagcountry|Central African Republic}} | {{nts|2.3}} | {{nts|985}} | {{nts|-1.8}} | 0.397 |- | style="text-align:left;" | {{flagcountry|Chad}} | {{nts|10.9}} | {{nts|1,654}} | {{nts|2.2}} | 0.398 |- | style="text-align:left;" | {{flagcountry|Comoros}} | {{nts|1.2}} | {{nts|3,108}} | {{nts|3.1}} | 0.554 |- | style="text-align:left;" | {{flagcountry|Democratic Republic of the Congo}} | {{nts|49.8}} | {{nts|1,015}} | {{nts|6.1}} | 0.480 |- | style="text-align:left;" | {{flagcountry|Republic of the Congo}} | {{nts|12.5}} | {{nts|4,600}} | {{nts|-1.0}} | 0.574 |- | style="text-align:left;" | {{flagcountry|Djibouti}} | {{nts|3.3}} | {{nts|5,195}} | {{nts|6.6}} | 0.524 |- | style="text-align:left;" | {{flagcountry|Egypt}} | {{nts|302.3}} | {{nts|12,391}} | {{nts|3.8}} | 0.707 |- | style="text-align:left;" | {{flagcountry|Equatorial Guinea}} | {{nts|11.8}} | {{nts|19,291}} | {{nts|-2.9}} | 0.592 |- | style="text-align:left;" | {{flagcountry|Eritrea}} | {{nts|2.0}} | {{nts|1,836}} | {{nts|3.4}} | 0.459 |- | style="text-align:left;" | {{flagcountry|Eswatini|name=Eswatini (Swaziland)}} | {{nts|4.6}} | {{nts|9,245}} | {{nts|2.4}} | 0.611 |- | style="text-align:left;" | {{flagcountry|Ethiopia}} | {{nts|92.8}} | {{nts|2,724}} | {{nts|9.5}} | 0.485 |- | style="text-align:left;" | {{flagcountry|Gabon}} | {{nts|16.9}} | {{nts|16,273}} | {{nts|3.7}} | 0.703 |- | style="text-align:left;" | {{flagcountry|Gambia}} | {{nts|1.8}} | {{nts|2,316}} | {{nts|2.4}} | 0.496 |- | style="text-align:left;" | {{flagcountry|Ghana}} | {{nts|67.0}} | {{nts|5,688}} | {{nts|6.5}} | 0.611 |- | style="text-align:left;" | {{flagcountry|Guinea}} | {{nts|13.8}} | {{nts|2,506}} | {{nts|6.2}} | 0.477 |- | style="text-align:left;" | {{flagcountry|Guinea-Bissau}} | {{nts|1.4}} | {{nts|2,429}} | {{nts|3.8}} | 0.480 |- | style="text-align:left;" | {{flagcountry|Ivory Coast}} | {{nts|58.6}} | {{nts|5,327}} | {{nts|6.7}} | 0.538 |- | style="text-align:left;" | {{flagcountry|Kenya}} | {{nts|95.4}} | {{nts|4,985}} | {{nts|5.6}} | 0.601 |- | style="text-align:left;" | {{flagcountry|Lesotho}} | {{nts|2.4}} | {{nts|3,010}} | {{nts|2.8}} | 0.527 |- | style="text-align:left;" | {{flagcountry|Liberia}} | {{nts|3.2}} | {{nts|1,601}} | {{nts|2.7}} | 0.480 |- | style="text-align:left;" | {{flagcountry|Libya}} | {{nts|39.8}} | {{nts|14,174}} | {{nts|-10.2}} | 0.724 |- | style="text-align:left;" | {{flagcountry|Madagascar}} | {{nts|14.1}} | {{nts|1,720}} | {{nts|3.4}} | 0.528 |- | style="text-align:left;" | {{flagcountry|Malawi}} | {{nts|7.7}} | {{nts|1,004}} | {{nts|3.8}} | 0.483 |- | style="text-align:left;" | {{flagcountry|Mali}} | {{nts|17.3}} | {{nts|2,508}} | {{nts|4.3}} | 0.434 |- | style="text-align:left;" | {{flagcountry|Mauritania}} | {{nts|7.6}} | {{nts|6,036}} | {{nts|3.9}} | 0.546 |- | style="text-align:left;" | {{flagcountry|Mauritius}} | {{nts|14.0}} | {{nts|23,819}} | {{nts|3.6}} | 0.804 |- | style="text-align:left;" | {{flagcountry|Mayotte}} (France) | {{nts|3.1}} (2018)<ref name="Mayotte">{{cite web|url=https://ec.europa.eu/eurostat/databrowser/view/NAMA_10R_2GDP__custom_148814/default/table |title=Gross domestic product (GDP) at current market prices by NUTS 2 regions |author=Eurostat|access-date=2020-11-02}}</ref> | {{nts|11,815}} (nominal, 2018)<ref name=Mayotte /> | (N/A) | (N/A) |- | style="text-align:left;" | {{flagcountry|Morocco}} | {{nts|118.6}} | {{nts|8,148}} | {{nts|3.4}} | 0.686 |- | style="text-align:left;" | {{flagcountry|Mozambique}} | {{nts|15.2}} | {{nts|1,302}} | {{nts|5.4}} | 0.456 |- | style="text-align:left;" | {{flagcountry|Namibia}} | {{nts|12.5}} | {{nts|10,279}} | {{nts|2.8}} | 0.646 |- | style="text-align:left;" | {{flagcountry|Niger}} | {{nts|12.9}} | {{nts|1,276}} | {{nts|5.9}} | 0.394 |- | style="text-align:left;" | {{flagcountry|Nigeria}} | {{nts|448.1}} | {{nts|5,353}} | {{nts|3.0}} | 0.539 |- | style="text-align:left;" | {{flagcountry|Réunion}} (France) | {{nts|22.0}}<ref name="Reunion">{{cite web|url=https://www.cerom-outremer.fr/IMG/pdf/cerom_comptes_2019_vdef3.pdf |title=Comptes économiques rapides de La Réunion en 2019 |author=CEROM|access-date=2020-11-02|language=fr}}</ref> | {{nts|25,639}} (nominal)<ref name=Reunion /> | {{nts|2.1}}<ref>{{cite web|url=https://www.insee.fr/fr/statistiques/4510571?sommaire=4476042#tableau-figure1 |title=Figure 1 – Le PIB progresse de 2,2 % en volume en 2019 |author=INSEE|access-date=2020-11-02|language=fr}}</ref> | {{nts|0.850}} (2003)<ref>{{cite web|url=http://www.temoignages.re/article.php3?id_article=18997|title=... dévoile ses propositions locales. "Enfin !"|date=1 December 2006}}</ref> |- | style="text-align:left;" | {{flagcountry|Rwanda}} | {{nts|10.1}} | {{nts|2,363}} | {{nts|7.6}} | 0.543 |- | style="text-align:left;" | {{flagcountry|Sao Tome and Principe}} | {{nts|0.4}} | {{nts|4,141}} | {{nts|3.9}} | 0.625 |- | style="text-align:left;" | {{flagcountry|Senegal}} | {{nts|23.6}} | {{nts|3,536}} | {{nts|5.3}} | 0.512 |- | style="text-align:left;" | {{flagcountry|Seychelles}} | {{nts|1.7}} | {{nts|30,430}} | {{nts|4.6}} | 0.796 |- | style="text-align:left;" | {{flagcountry|Sierra Leone}} | {{nts|4.2}} | {{nts|1,778}} | {{nts|4.4}} | 0.452 |- | style="text-align:left;" | {{flagcountry|Somalia}} | {{nts|18.2}} | {{nts|888.00}} | (N/A) | {{nts|0.364}} (2008)<ref>{{Cite web |last=Hastings |first=David |title=FILLING GAPS IN THE HUMAN DEVELOPMENT INDEX: FINDINGS FOR ASIA AND THE PACIFIC |url=https://www.unescap.org/sites/default/files/wp-09-02.pdf |access-date=31 Oct 2025 |website=unescap.org}}</ref> |- | style="text-align:left;" | {{flagcountry|South Africa}} | {{nts|351.4}} | {{nts|12,962}} | {{nts|1.5}} | 0.709 |- | style="text-align:left;" | {{flagcountry|South Sudan}} | {{nts|4.9}} | {{nts|862}} | (N/A) | 0.433 |- | style="text-align:left;" | {{flagcountry|Sudan}} | {{nts|33.4}} | {{nts|4,140}} | {{nts|-1.6}} | 0.510 |- | style="text-align:left;" | {{flagcountry|Tanzania}} | {{nts|60.8}} | {{nts|2,841}} | {{nts|6.7}} | 0.529 |- | style="text-align:left;" | {{flagcountry|Togo}} | {{nts|5.5}} | {{nts|1,657}} | {{nts|5.6}} | 0.515 |- | style="text-align:left;" | {{flagcountry|Tunisia}} | {{nts|38.8}} | {{nts|11,125}} | {{nts|1.8}} | 0.740 |- | style="text-align:left;" | {{flagcountry|Uganda}} | {{nts|36.5}} | {{nts|2,646}} | {{nts|5.2}} | 0.544 |- | style="text-align:left;" | {{flagcountry|Zambia}} | {{nts|24.2}} | {{nts|3,526}} | {{nts|4.3}} | 0.584 |- | style="text-align:left;" | {{flagcountry|Zimbabwe}} | {{nts|18.7}} | {{nts|2,896}} | {{nts|4.2}} | 0.571
|} == Economic sectors and industries == Because Africa's export portfolio remains predominantly based on raw material, its export earnings are contingent on commodity price fluctuations. This exacerbates the continent's susceptibility to external shocks and bolsters the need for export diversification. Trade in services, mainly travel and tourism, continued to rise in year 2012, underscoring the continent's strong potential in this sphere.<ref name="African Economic Outlook-2012" /><ref name=Monthly-Review-51-03-Saul-Leys>John J. Saul and Colin Leys, [http://monthlyreview.org/1999/07/01/sub-saharan-africa-in-global-capitalism Sub-Saharan Africa in Global Capitalism], ''Monthly Review'', 1999, Volume 51, Issue 03 (July–August)</ref><ref name=Monthly-Review-Magdoff-65-06>Fred Magdoff, [http://monthlyreview.org/2013/11/01/twenty-first-century-land-grabs Twenty-First-Century Land Grabs: Accumulation by Agricultural Dispossession], ''Monthly Review'', 2013, Volume 65, Issue 06 (November)</ref>
=== Agriculture === {{See also|Women and agriculture in Sub-Saharan Africa}} [[File:2DU Kenya 86 (5367322642).jpg|thumb|left|A Mount Kenya region farmer, 2010|255x255px]] thumb|Aerial view of agricultural fields in Ethiopia in 2025 48% of working people in Africa work in agriculture, the highest in the world.<ref>{{Cite book |title=World Food and Agriculture – Statistical Yearbook 2023 {{!}} FAO {{!}} Food and Agriculture Organization of the United Nations |url=https://www.fao.org/documents/card/en?details=cc8166en |access-date=2023-12-13 |website=FAODocuments | date=2023 |language=en |doi=10.4060/cc8166en| isbn=978-92-5-138262-2 }}</ref> The situation whereby African nations export crops to the West while millions on the continent starve has been blamed on the economic policies of the developed countries. These advanced nations protect their own agricultural sectors with high import tariffs and offer government subsidies to their farmers.<ref>{{cite book|last=Caplan|first=Gerald|title=The Betrayal of Africa|year=2008|publisher=Groundwood Books|isbn=978-0-88899-825-5|page=[https://archive.org/details/betrayalofafrica00capl_0/page/93 93]|url-access=registration|url=https://archive.org/details/betrayalofafrica00capl_0/page/93}}</ref> which many contend leads the overproduction of such commodities as grain, cotton and milk. The impact of agricultural subsidies in developed countries upon developing-country farmers and international development is well documented. Agricultural subsidies can help drive prices down to benefit consumers, but also mean that unsubsidised developing-country farmers have a more difficult time competing in the world market;<ref>{{cite book|last=Patel|first=Raj|title=Stuffed and Starved|date=2007|publisher=Portobello Books|location=UK|page=57}}</ref> and the effects on poverty are particularly negative when subsidies are provided for crops that are also grown in developing countries since developing-country farmers must then compete directly with subsidised developed-country farmers, for example in cotton and sugar.<ref name="boxes">[http://ictsd.org/downloads/2009/10/green-box-web-1.pdf Agricultural Subsidies in the WTO Green Box] {{webarchive |url=https://web.archive.org/web/20111112002442/http://ictsd.org/downloads/2009/10/green-box-web-1.pdf |date=12 November 2011 }}, ICTSD, September 2009.</ref><ref>{{cite web | title = Agricultural Subsidies, Poverty and the Environment | publisher = World Resources Institute | date = January 2007 | url =http://pdf.wri.org/aspe_domestic_reform.pdf | access-date =25 February 2011}}</ref> The IFPRI has estimated in 2003 that the impact of subsidies costs developing countries $24 billion in lost incomes going to agricultural and agro-industrial production; and more than $40Bn is displaced from net agricultural exports.<ref>{{cite web|title=How much does it hurt? The Impact of Agricultural Trade Policies on Developing Countries |publisher=IFPRI |year=2010 |url=http://www.ifpri.org/sites/default/files/pubs/media/trade/trade.pdf |access-date=25 February 2011 |archive-url=https://web.archive.org/web/20110726172604/http://www.ifpri.org/sites/default/files/pubs/media/trade/trade.pdf |archive-date=26 July 2011 }}</ref> The result of this is that the global price of such products is continually reduced until Africans are unable to compete, except for cash crops that do not grow easily in a northern climate.<ref name=Monthly-Review-51-03-Saul-Leys /><ref name=Monthly-Review-Magdoff-65-06 /><ref>{{Cite web|url=http://www.ncpa.org/pub/ba547|title=Farm Subsidies: Devastating the World's Poor and the Environment|website=www.ncpa.org|access-date=2017-09-12|archive-date=9 January 2018|archive-url=https://web.archive.org/web/20180109013829/http://www.ncpa.org/pub/ba547}}</ref>
In recent years countries such as Brazil, which has experienced progress in agricultural production, have agreed to share technology with Africa to increase agricultural production in the continent to make it a more viable trade partner.<ref>{{Cite web|url=http://ipsnews.net/news.asp?idnews=42069|title=Inter Press Service {{!}} News and Views from the Global South|website=ipsnews.net|access-date=2017-09-12}}</ref> Increased investment in African agricultural technology in general has the potential to reduce poverty in Africa.<ref name=Monthly-Review-51-03-Saul-Leys /><ref name=Monthly-Review-Magdoff-65-06 /><ref>{{Cite news|url=http://www.huliq.com/11/73879/targeted-agricultural-investments-will-slash-poverty-africa|title=Targeted agricultural investments will slash poverty in Africa|last=Hareyan|first=Armine|date=2008-12-01|work=HULIQ|access-date=2017-09-12|language=en}}</ref> The demand market for African cocoa has experienced a price boom in 2008.<ref>{{Cite web|url=http://africanagriculture.blogspot.com/2009/01/african-cocoa-enjoying-price-boom.html|title=Redirecting|website=africanagriculture.blogspot.com|access-date=2017-09-12|archive-date=14 March 2014|archive-url=https://web.archive.org/web/20140314200237/http://africanagriculture.blogspot.com/2009/01/african-cocoa-enjoying-price-boom.html}}</ref> The Nigerian,<ref>{{Cite news | url=http://www.premiumtimesng.com/news/154296-private-sector-invests-n1-7-trillion-nigerias-agricultural-sector-jonathan.html | title=Private sector invests N1.7 trillion in Nigeria's agricultural sector – Jonathan |location=Nigeria | date=30 January 2014 | access-date=14 March 2014 | author=Usman, Talatu|newspaper=Premium Times}}</ref> South African<ref>{{Cite web|url=http://www.allbusiness.com/specialty-businesses/minority-owned-businesses/4072455-1.html|title=South Africa: Commodities lead boom}}</ref> and Ugandan governments have targeted policies to take advantage of the increased demand for certain agricultural products<ref>{{cite news|url=https://www.reuters.com/article/grohow/yaras-grohow-sees-2008-profit-stable-idUSL2219761720080222|title=Yara's GroHow sees 2008 profit stable|date=22 February 2008|newspaper=Reuters}}</ref> and plan to stimulate agricultural sectors.<ref>{{cite web|url=http://www.monitor.co.ug/artman/publish/news/Govt_targets_agricultural_boom.shtml|title=Govt targets agricultural boom – Daily Monitor|access-date=17 March 2009|archive-date=20 June 2008|archive-url=https://web.archive.org/web/20080620100732/http://www.monitor.co.ug/artman/publish/news/Govt_targets_agricultural_boom.shtml}}</ref> The African Union has plans to heavily invest in African agriculture<ref>{{Cite news|url=http://www.scidev.net/en/agriculture-and-environment/agri-biotech-in-africa/opinions/african-union-support-crucial-for-agricultural-pro.html|title=African Union support crucial for agricultural progress|last=SciDev.Net|work=SciDev.Net|access-date=2017-09-12|language=en}}</ref> and the situation is closely monitored by the UN.<ref>{{Cite web|url=https://www.un.org/apps/news/story.asp?NewsID=26624&Cr=africa&Cr1=agriculture|title=Though making 'very good progress,' Africa still faces challenges, says UN official|last=Section|first=United Nations News Service|date=2008-05-09|website=UN News Service Section|language=en|access-date=2017-09-12}}</ref>
Ticks are a constant pressure on the continent's livestock.<ref name="Agaba-2022">{{cite web | last=Agaba | first=John | title=African researchers: Tick vaccines can stop use of dangerous pesticides | website=Alliance for Science | date=2022-05-02 | url=https://allianceforscience.cornell.edu/blog/2022/05/african-researchers-tick-vaccines-can-stop-use-of-dangerous-pesticides/ | access-date=2022-05-03 | archive-date=14 August 2022 | archive-url=https://web.archive.org/web/20220814154043/https://allianceforscience.cornell.edu/blog/2022/05/african-researchers-tick-vaccines-can-stop-use-of-dangerous-pesticides/ }}</ref> Although acaricides have been commonly used by farmers here, they are becoming less effective.<ref name="Agaba-2022" /> Tick vaccines are under development and may fill this void.<ref name="Agaba-2022" />
=== Energy === {{Further|Energy in Africa|Renewable energy in Africa}} [[File:Greater Cape Town 12.02.2007 16-41-31.2007 16-41-33.JPG|thumb|The Athlone Power Station in Cape Town, South Africa in 2007]]
Africa has significant resources for generating energy in several forms (hydroelectric, reserves of petroleum and gas, coal production, uranium production, renewable energy such as solar, wind and geothermal). The lack of development and infrastructure means that little of this potential is actually in use today.<ref name="Monthly-Review-51-03-Saul-Leys" /><ref name="Monthly-Review-Magdoff-65-06" /> The largest consumers of electric power in Africa are South Africa, Libya, Namibia, Egypt, Tunisia, and Zimbabwe, which each consume between 1000 and 5000 KWh/m<sup>2</sup> per person, in contrast with African states such as Ethiopia, Eritrea, and Tanzania, where electricity consumption per person is negligible.<ref>{{cite journal|title=2013 Guide economique du continent Bourses Africaines|journal=Africa 24 Magazine |year=2013|issue=8|pages=12–13|editor1-first=Etnium|editor1-last=Sarl|issn=2114-2610}}</ref>
Petroleum and petroleum products are the main export of 14 African countries. Petroleum and petroleum products accounted for a 46.6% share of Africa's total exports in 2010; the second largest export of Africa as a whole is natural gas, in its gaseous state and as liquified natural gas, accounting for a 6.3% share of Africa's exports.<ref>{{cite web|title=Table 7 – Exports, 2010|url=http://www.africaneconomicoutlook.org/en/data-statistics/table-7-exports-2010/|publisher=African Economic Outlook|access-date=2 March 2013|archive-url=https://web.archive.org/web/20130212030740/http://www.africaneconomicoutlook.org/en/data-statistics/table-7-exports-2010/|archive-date=12 February 2013}}</ref> Only South Africa is using nuclear power commercially.<ref>{{Cite web|date=2020-04-10|title=As Africa looks for clean power, interest in nuclear grows|url=https://www.japantimes.co.jp/news/2020/04/10/business/africa-clean-power-nuclear/|access-date=2021-07-07|website=The Japan Times|language=en-US}}</ref>
=== Infrastructure === [[File:Lagos Island.jpg|thumb|left|Lagos, Nigeria, Africa's largest city, 2007|274x274px]]
Lack of infrastructure creates barriers for African businesses.<ref name=Monthly-Review-51-03-Saul-Leys /><ref name=Monthly-Review-Magdoff-65-06 /> Although it has many ports, a lack of supporting transportation infrastructure adds 30–40% to costs, in contrast to Asian ports.<ref name="SarlEtnium">{{cite journal|title=2013 Guide economique du continent Bourses Africaines|journal=Africa 24 |year=2013|issue=8|pages=20–21|editor1-last=Sarl}}</ref>
Railway projects were important in mining districts from the late 19th century. Large railway and road projects characterize the late 19th century. Railroads were emphasized in the colonial era, and roads in 'post-colonial' times. Jedwab & Storeygard find that in 1960–2015 there were strong correlations between transportation investments and economic development. Influential political include pre-colonial centralization, ethnic fractionalization, European settlement, natural resource dependence, and democracy.<ref>{{cite journal |last1=Jedwab |first1=Remi |last2=Storeygard |first2=Adam |title=Economic and Political Factors in Infrastructure Investment: Evidence from Railroads and Roads in Africa 1960–2015 |journal=Economic History of Developing Regions |date=4 May 2019 |volume=34 |issue=2 |pages=156–208 |doi=10.1080/20780389.2019.1627190 |s2cid=199535355 }}</ref>
Many large infrastructure projects are underway across Africa. By far, most of these projects are in the production and transportation of electric power. Many other projects include paved highways, railways, airports, and other construction.<ref name="SarlEtnium" />
Telecommunications infrastructure is also a growth area in Africa. Although Internet penetration lags other continents, it has still reached 9%. As of 2011, it was estimated that 500,000,000 mobile phones of all types were in use in Africa, including 15,000,000 "smart phones".<ref>{{cite journal|title=2013 Guide economique du continent Bourses Africaines|journal=Africa 24 |year=2013|issue=8|page=24|editor1-last=Sarl}}</ref>
=== Mining and drilling === {{Main|Mineral industry of Africa}}
thumb|right|400px|Tanzania and Uganda Pipeline, $5 billion project thumb|right|400px|Somaliland crude oil Genel Energy concession schematic. Somaliland estimates crude at 30Bn barrels targets of exploration and production in 2024-2025.
The mineral industry of Africa is one of the largest mineral industries in the world. Africa is the second biggest continent, with 30 million km<sup>2</sup> of land, which implies large quantities of resources.<ref name=Monthly-Review-51-03-Saul-Leys /><ref name=Monthly-Review-Magdoff-65-06 /> For many African countries, mineral exploration and production constitute significant parts of their economies and remain keys to future economic growth. Africa is richly endowed with mineral reserves and ranks first or second in quantity of world reserves of bauxite, cobalt, industrial diamond, phosphate rock, platinum-group metals (PGM), vermiculite, and zirconium.
African mineral reserves rank first or second for bauxite, cobalt, diamonds, phosphate rocks, platinum-group metals (PGM), vermiculite, and zirconium. Many other minerals are also present in quantity. The 2005 share of world production from African soil is the following: bauxite 9%; aluminium 5%; chromite 44%; cobalt 57%; copper 5%; gold 21%; iron ore 4%; steel 2%; lead (Pb) 3%; manganese 39%; zinc 2%; cement 4%; natural diamond 46%; graphite 2%; phosphate rock 31%; coal 5%; mineral fuels (including coal) & petroleum 13%; uranium 16%.{{Citation needed|date=May 2020}}
Since Africa is home to large reserves of the minerals needed for the ongoing energy transition, i.e. the transition to renewable energy technologies, the predicted increase in global demand for these critical minerals could become a driver of sustainable economic development on the continent, not least for the mineral-rich countries of Africa.<ref name="nai.uu.se">{{Cite web |title=Yesterday mineral supplier, tomorrow battery producer - The Nordic Africa Institute |url=https://nai.uu.se/news-and-events/news/2024-06-10-yesterday-mineral-supplier-tomorrow-battery-producer.html |access-date=2024-06-11 |website=nai.uu.se |language=en}}</ref> The African Union has outlined a policy framework, the Africa Mining Vision, to leverage the continent's mineral reserves in pursuit of sustainable development and socio-economic transformation.<ref>{{Cite web |last=African Mining Vision (AMV) |title=The African Union (AU) |url=https://au.int/en/ti/amv/about}}</ref> A key ambition in this vision is to transform Africa's economies from today's high levels of commodity export to a larger share of industrial manufacturing of higher value-added products, an ambition that will require investments in capacity building, research and development.<ref name="nai.uu.se"/>
=== Manufacturing === {{Main|Industrialisation in Africa}}
[[File:Soucreye Sidi Bennour.jpg|thumb|left|The Soucreye sugar factory in Sidi Bennour (Doukkala), Morocco]]
Both the African Union and the United Nations have outlined plans in modern years on how Africa can help itself industrialize and develop significant manufacturing sectors to levels proportional to the African economy in the 1960s with 21st-century technology.<ref>{{cite web|url=https://www.un.org/ecosocdev/geninfo/afrec/vol18no3/183industries.htm|title=Africa strives to rebuild its domestic industries}}</ref> This focus on growth and diversification of manufacturing and industrial production, as well as diversification of agricultural production, has fueled hopes that the 21st century will prove to be a century of economic and technological growth for Africa. This hope, coupled with the rise of new leaders in Africa in the future, inspired the term "the African Century", referring to the 21st century potentially being the century when Africa's vast untapped labor, capital, and resource potentials might become a world player. This hope in manufacturing and industry is helped by the boom in communications technology<ref>{{Cite news|url=http://www.ioltechnology.co.za/article_page.php?iSectionId=2884&iArticleId=3470314|title=technology {{!}} IOL Business Report|access-date=2017-09-12|language=en|archive-date=13 August 2022|archive-url=https://web.archive.org/web/20220813065410/https://www.ioltechnology.co.za/article_page.php?iSectionId=2884&iArticleId=3470314}}</ref> and local mining industry<ref>{{Cite web|url=http://www.mining-technology.com/contractors/project/murray_roberts/press17.html|title=Resources Boom Represents Development Potential in Africa – Mining Technology|website=www.mining-technology.com|access-date=2017-09-12|archive-date=12 September 2017|archive-url=https://web.archive.org/web/20170912191345/http://www.mining-technology.com/contractors/project/murray_roberts/press17.html}}</ref> in much of sub-Saharan Africa. Namibia has attracted industrial investments in recent years<ref>{{Cite news|url=http://allafrica.com/stories/200810160840.html|title=Namibia: Congo Copper Giant to Invest in Country|last=Grobler|first=John|date=2008-10-16|work=The Namibian (Windhoek)|access-date=2017-09-12}}</ref> and South Africa has begun offering tax incentives to attract foreign direct investment projects in manufacturing.<ref>{{cite web|url=http://www.southafrica.info/business/investing/incentives/industrial-110309.htm|title=Tax breaks for big investment projects|website=southafrica.info}}</ref>
Countries such as Mauritius have plans for developing new "green technology" for manufacturing.<ref>{{cite web|url=http://www.ipsnews.org/africa/nota.asp?idnews=44541|title=ECONOMY-MAURITIUS: Textile Manufacturing Goes Green and Clean|access-date=17 March 2009|archive-date=22 February 2012|archive-url=https://web.archive.org/web/20120222232312/http://www.ipsnews.org/africa/nota.asp?idnews=44541}}</ref> Developments such as this have huge potential to open new markets for African countries as the demand for alternative "green" and clean technology is predicted to soar in the future as global oil reserves dry up and fossil fuel-based technology becomes less economically viable.<ref>{{cite web|url=http://www.afrol.com/Categories/Economy_Develop/dev026_renewable_energy.htm|title=Market for renewable energy expected to boom in Africa|access-date=17 March 2009|archive-date=14 March 2012|archive-url=https://web.archive.org/web/20120314084127/http://www.afrol.com/Categories/Economy_Develop/dev026_renewable_energy.htm}}</ref><ref>{{Cite web|url=http://ae-africa.com/read_article.php?NID=452|title=Alternative Energy Africa|website=ae-africa.com|access-date=2017-09-12|archive-date=8 March 2016|archive-url=https://web.archive.org/web/20160308103804/http://ae-africa.com/read_article.php?nid=452}}</ref>
Nigeria in recent years has been embracing industrialization, It currently has an indigenous vehicle manufacturing company, Innoson Vehicle Manufacturing (IVM), which manufactures rapid transit buses, trucks and SUVs, with an upcoming introduction of cars.<ref name="AbujaInquirer">{{cite web | url=http://theabujainquirer.com/index.php?option=com_content&view=article&id=130:innoson-cars-will-sell-for-n1-million-in-2014-chukwuma&catid=88&Itemid=702 | title=Innoson cars will sell for N1 million in 2014 – Chukwuma | work=The Abuja Inquirer | access-date=14 March 2014}}</ref> Their various brands of vehicle are currently available in Nigeria, Ghana and other West African Nations.<ref>{{Cite news | url=http://www.vanguardngr.com/2013/10/local-vehicles-manufacturing-innosonfg-pact-commendable/ |location=Lagos, Nigeria| title=Local vehicles manufacturing – INNOSON/FG pact commendable | date=19 October 2013 | access-date=23 April 2014|newspaper=Vanguard}}</ref><ref>{{cite web | url=http://www.thenigerianvoice.com/nvnews/83629/1/chukwuma-businessman-who-defied-the-limits.html | title=CHUKWUMA: BUSINESSMAN WHO DEFIED THE LIMITS | work=The Nigerian Voice | publisher=NBF News | date=25 February 2012 | access-date=23 April 2014}}</ref><ref>{{cite web | url=http://www.elombah.com/index.php/reports/19499-innoson-vehicle-manufacturing-granted-license-to-export-its-vehicles | archive-url=https://archive.today/20140423143159/http://www.elombah.com/index.php/reports/19499-innoson-vehicle-manufacturing-granted-license-to-export-its-vehicles | archive-date=23 April 2014 | title=Innoson Vehicle Manufacturing granted license to export its vehicles | publisher=Elombah.com | work=Elombah | date=12 December 2013 | access-date=23 April 2014 | author=Obaze, Oseloka H. }}</ref><ref>{{Cite news | url=http://www.thisdaylive.com/articles/i-couldnt-meet-cut-off-mark-to-study-engineering-innoson/172674/ | title=I Couldn't Meet Cut-off Mark to Study Engineering – Innoson | date=1 March 2014 | access-date=23 April 2014 | archive-date=12 October 2014 | archive-url=https://web.archive.org/web/20141012221155/http://www.thisdaylive.com/articles/i-couldnt-meet-cut-off-mark-to-study-engineering-innoson/172674/ |newspaper=This Day}}</ref> Nigeria also has few electronic manufacturers like Zinox, the first branded Nigerian computer, and electronic gadgets (like tablet PCs) manufacturers.<ref>{{Cite news|url=http://www.thisdaylive.com/articles/zinox-introduces-tablet-range-of-computers-plans-commercial-launch/162517/ |title=Zinox Introduces Tablet Range of Computers, Plans Commercial Launch |date=24 October 2013 |access-date=14 March 2014 |author=Okonji, Emma |archive-url=https://web.archive.org/web/20131027075729/http://www.thisdaylive.com/articles/zinox-introduces-tablet-range-of-computers-plans-commercial-launch/162517 |archive-date=27 October 2013|newspaper=This Day}}</ref> In 2013, Nigeria introduced a policy regarding import duty on vehicles to encourage local manufacturing companies in the country.<ref>{{Cite news|url=http://www.punchng.com/business/business-economy/fg-raises-tariff-on-imported-cars/ |title=FG raises tariff on imported cars |date=4 October 2014 |access-date=14 March 2014 |author=Onuba, Ifeanyi |archive-url=https://web.archive.org/web/20131127165800/http://www.punchng.com/business/business-economy/fg-raises-tariff-on-imported-cars/ |archive-date=27 November 2013|newspaper=The Punch}}</ref><ref>{{Cite news | url=http://www.vanguardngr.com/2014/01/will-new-automotive-policy-give-us-affordable-made-nigeria-car/ |location=Lagos, Nigeria| title=Will the new automotive policy give us affordable made-in-Nigeria car? | date=19 January 2014 | access-date=14 March 2014 | author=Clement, Udeme|newspaper=Vanguard}}</ref> In this regard, some foreign vehicle manufacturing companies like Nissan have made known their plans to have manufacturing plants in Nigeria.<ref>{{Cite news | url=http://www.vanguardngr.com/2014/01/nissan-role-1st-made-nigeria-cars-april/ |location=Lagos, Nigeria| title=Nissan to role out 1st made in Nigeria cars in April | date=24 January 2014 | access-date=14 March 2014 | author=Agande, Ben|newspaper=Vanguard}}</ref> Apart from electronics and vehicles, most consumer, pharmaceutical and cosmetic products, building materials, textiles, home tools, plastics and so on are also manufactured in the country and exported to other west African and African countries.<ref>{{cite web | url=http://www.tradeinvestnigeria.com/feature_articles/357260.htm | title=Consumer goods businesses to do well in Nigeria | publisher=Trade Invest Nigeria | work=Trade Invest | date=5 June 2010 | access-date=23 April 2014 |author1=Awe, Olumide |author2=Sholotan, Olugbenga |author3=Asaolu, Olubunmi }}</ref><ref>{{cite web | url=http://sundaytrust.com.ng/index.php/business/15455-revamping-nigeria-s-manufacturing-sector | title='Revamping Nigeria's manufacturing sector' | work=Sunday Trust | date=29 December 2013 | access-date=23 April 2014 | author=Orya Roberts}}</ref><ref>{{cite web | url=http://nigeriapharmaexpo.com/ | title=Welcome to Nigeria Pharma Manufactures Expo 2013..! | publisher=Nigeria Pharma Manufacturer Expo 2013 | work=Nigeria Pharmaceutical Manufacturers | date=19 October 2013 | access-date=23 April 2014}}</ref> Nigeria is currently the largest manufacturer of cement in Sub-saharan Africa.<ref>{{cite web | url=http://businessdayonline.com/2013/11/nigeria-overtakes-south-africa-as-biggest-cement-manufacturer-in-ssa/#.U1fKT1c9RdI | title=Nigeria overtakes South Africa as biggest cement manufacturer in SSA | work=Business Day | date=27 November 2013 | access-date=23 April 2014 | author=Anudu, Odinaka}}</ref> and Dangote Cement Factory, Obajana is the largest cement factory in sub-saharan Africa.<ref>{{cite web | url=http://www.elombah.com/index.php/latest-news/11412-aliko-dangote-launches-nigeria-s-biggest-cement-plant | archive-url=https://archive.today/20140423143329/http://www.elombah.com/index.php/latest-news/11412-aliko-dangote-launches-nigeria-s-biggest-cement-plant | archive-date=23 April 2014 | title=Aliko Dangote Launches Nigeria's biggest cement plant | publisher=Elombah.com | work=Elombah | date=11 June 2012 | access-date=23 April 2014 }}</ref> Ogun is considered to be Nigeria's industrial hub (as most factories are located in Ogun and even more companies are moving there), followed by Lagos.<ref>{{Cite news | url=http://www.vanguardngr.com/2013/06/why-more-companies-are-moving-to-ogun/ |location=Lagos, Nigeria| title=Industrial hub: Why more companies are moving to Ogun | date=19 June 2013 | access-date=14 March 2014|newspaper=Vanguard}}</ref><ref>{{cite web|url=http://www.mydailynewswatchng.com/2013/05/05/ogun-states-rising-investment-profile/ |archive-url=https://archive.today/20140314202910/http://www.mydailynewswatchng.com/2013/05/05/ogun-states-rising-investment-profile/ |archive-date=14 March 2014 |title=Ogun State's rising investment profile |publisher=Daily NewsWatch |date=5 May 2013 |access-date=14 March 2014 }}</ref><ref>{{cite web | url=http://news2.onlinenigeria.com/news/top-stories/219914-ogun-state-nigeria%E2%80%99s-new-industrial-hub.html | title=Ogun State: Nigeria's new Industrial hub | publisher=Online Nigeria News | date=27 November 2012 | access-date=14 March 2014 | archive-date=29 November 2013 | archive-url=https://web.archive.org/web/20131129151508/http://news2.onlinenigeria.com/news/top-stories/219914-ogun-state-nigeria%E2%80%99s-new-industrial-hub.html }}</ref>
The manufacturing sector is small but growing in East Africa.<ref name="African Development Bank-2014">{{Cite book|title=Eastern Africa' manufacturing sector: Promoting technology, innovation, productivity and linkages|author=African Development Bank|year=2014|url=http://observatoire-europe-afrique-2020.org/wp-content/uploads/2016/03/Eastern-Africa_Manuf....78.pdf}}</ref> The main industries are textile and clothing, leather processing, agribusiness, chemical products, electronics and vehicles.<ref name="African Development Bank-2014" /> East African countries like Uganda also produce motorcycles for the domestic market.<ref>{{Cite web|url=https://www.odi.org/comment/10497-how-manufacturing-motorcycles-can-boost-ugandas-economy|title=How manufacturing motorcycles can boost Uganda's economy|last=Calabrese|first=Linda|date=March 2017|website=ODI|access-date=1 September 2017|archive-date=25 April 2019|archive-url=https://web.archive.org/web/20190425060033/https://www.odi.org/comment/10497-how-manufacturing-motorcycles-can-boost-ugandas-economy}}</ref>
=== Investment and banking === {{See also|Central banks and currencies of Africa|List of African stock exchanges}} [[File:South Africa-Johannesburg-Skyline02.jpg|thumb|Many financial firms have offices in downtown Johannesburg, South Africa.]]
China and India<ref>{{Cite web|url=http://www.voanews.com/english/archive/2008-04/2008-04-08-voa17.cfm?CFID=140257974&CFTOKEN=17381871&jsessionid=0030b32f930929dbd81e304135b787e2c1b7|title=India to Step Up Trade and Investment in Africa}}</ref> have shown increasing interest in emerging African economies in the 21st century. Reciprocal investment between Africa and China increased dramatically in recent years<ref>{{Cite news|url=https://news.bbc.co.uk/2/hi/africa/7086777.stm|title=China in Africa: Friend or foe?|date=2007-11-26|access-date=2017-09-12|language=en-GB}}</ref><ref>{{Cite news|url=http://worldfocus.org/blog/2008/10/13/chinese-investment-in-africa-soars/1555/|title=Chinese investment in Africa soars |date=2008-10-13|work=Worldfocus|access-date=2017-09-12|language=en-US}}</ref> amidst the current world financial crisis.<ref>{{cite web|url=http://news.xinhuanet.com/english/2009-02/06/content_10775317.htm|archive-url=https://web.archive.org/web/20090210131527/http://news.xinhuanet.com/english/2009-02/06/content_10775317.htm|archive-date=10 February 2009|title=China to maintain aid, investment in Africa 'regardless of financial crisis' |work=Xinhuanet}}</ref>
The increased investment in Africa by China has attracted the attention of the European Union and has provoked talks of competitive investment by the EU.<ref>{{Cite web|url=http://www.atimes.com/atimes/China/IL13Ad01.html|archive-url=https://web.archive.org/web/20080514000346/http://www.atimes.com/atimes/China/IL13Ad01.html|url-status=unfit|archive-date=2008-05-14|title=China outwits the EU in Africa |website=Asia Time |access-date=2017-09-12}}</ref> Members of the African diaspora abroad, especially in the EU and the United States, have increased efforts to use their businesses to invest in Africa and encourage African investment abroad in the European economy.<ref>{{Cite web|url=http://ipsnews.net/news.asp?idnews=37978|title=Inter Press Service {{!}} News and Views from the Global South|website=ipsnews.net|access-date=2017-09-12}}</ref>
Remittances from the African diaspora and rising interest in investment from the West will be especially helpful for Africa's least developed and most devastated economies, such as Burundi, Togo and Comoros.<ref>{{Cite web|url=http://findarticles.com/p/articles/mi_qa5327/is_338/ai_n29402630|archive-url=https://archive.today/20120713021316/http://findarticles.com/p/articles/mi_qa5327/is_338/ai_n29402630|archive-date=2012-07-13|title=FindArticles.com {{!}} CBSi|website=findarticles.com|access-date=2017-09-12}}</ref> However, experts lament the high fees involved in sending remittances to Africa due to a duopoly of Western Union and MoneyGram that is controlling Africa's remittance market, making Africa is the most expensive cash transfer market in the world.<ref>{{Cite news|url=https://qz.com/1008951/western-union-moneygram-ria-and-others-remittance-fees-to-africa-are-still-higher-than-global-average/|title=Sending money home to Africa is cheaper than it was, but still higher than anywhere else|last=Kazeem|first=Yomi|work=Quartz|access-date=2017-08-17|language=en-US}}</ref> According to some experts, the high processing fees involved in sending money to Africa are hampering African countries' development.<ref>{{Cite web|url=https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/8901.pdf|title=Lost in Intermediation|website=Overseas Development Institute|access-date=17 August 2017|archive-date=25 October 2020|archive-url=https://web.archive.org/web/20201025213554/https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/8901.pdf}}</ref>
Remittances continue to be the most important source of external financial flows to Africa, accounting for 3.8% of GDP in 2021. However, only approximately 30% of it is dedicated to economic activities, the majority of which are in the informal sector, limiting its potential for productive transformation.<ref name="Bank-2023" /><ref>{{Cite web |title=Reducing Remittance Costs to Africa: A Path to Resilient Financing for Development {{!}} Office of the Special Adviser on Africa |url=https://www.un.org/osaa/news/reducing-remittance-costs-africa-path-resilient-financing-development |access-date=2023-10-31 |website=www.un.org}}</ref><ref>{{Cite web |title=Keep remittances flowing to Africa |url=https://www.brookings.edu/articles/keep-remittances-flowing-to-africa/ |access-date=2023-10-31 |website=Brookings |language=en-US}}</ref>
Angola has announced interests in investing in the EU, Portugal in particular.<ref name="afp.google.com">{{cite web|url=http://afp.google.com/article/ALeqM5gL-BXu6TEyHc0oZgQflAY3EiJaeQ|title=Angola oil tiger plans investment in Europe|work=Google News |access-date=17 March 2009|archive-date=4 October 2012|archive-url=https://web.archive.org/web/20121004205447/http://afp.google.com/article/ALeqM5gL-BXu6TEyHc0oZgQflAY3EiJaeQ}}</ref> South Africa has attracted increasing attention from the United States as a new frontier of investment in manufacture, financial markets and small business,<ref>{{Cite web|url=http://business.africanpath.com/article.cfm?articleID=68207|title=Minnesota: Investment opportunities abound in South Africa}}</ref> as has Liberia in recent years under their new leadership.<ref>{{cite web|url=http://www.voanews.com/english/archive/2007-03/Liberian-Leaders-Predict-Boom-for-Poor-West-African-Country.cfm|archive-url=https://web.archive.org/web/20070411153658/http://voanews.com/english/archive/2007-03/Liberian-Leaders-Predict-Boom-for-Poor-West-African-Country.cfm|archive-date=11 April 2007|title=Liberian Leaders Predict Boom for Poor West African Country}}</ref>
There are two African currency unions: the West African Banque Centrale des États de l'Afrique de l'Ouest (BCEAO) and the Central African Banque des États de l'Afrique Centrale (BEAC). Both use the CFA franc as their legal tender. The idea of a single currency union across Africa has been floated, and plans exist to have it established by 2020, though many issues, such as bringing continental inflation rates below 5 percent, remain hurdles in its finalization.<ref>{{Cite web|url=http://www.cnn.com/2017/08/08/africa/single-currency-west-africa/index.html|title=Could West Africa launch a single currency?|last=Liedong|first=Tahiru Azaaviele|date=8 August 2017 |publisher=CNN|access-date=2017-08-17}}</ref> In February 2024, following a large-scale trafficking of currency devices, the West African Monetary Union (UEMOA) and the Economic and Monetary Community of Central Africa (CEMAC), responsible for the monetary management of the CFA franc zone, and the Bank of France, which produces CFA franc coins, these central banks want to equip the CFA franc coins with a new alloy guaranteeing the security of the monetary circuit of the CFA franc zone, according to the International Copper Study Group (ICSG), the metal used to manufacture CFA franc coins, is prized because of its market value, The Economic and Monetary Community of Central Africa opened the first investigations in 2019, after noting the disappearance of the first CFA franc currency devices within the organization.<ref>{{Cite web|url=https://www.bfmtv.com/economie/international/un-trafic-de-monnaie-destabilise-l-economie-de-l-afrique-centrale_AV-202402040124.html|title=Un trafic de monnaie déstabilise l'économie de l'Afrique centrale|last=|first=|date=4 February 2024|website=bfmtv.com|access-date=2025-03-16}}</ref>
==== Stock exchanges ==== [[File:Bvmt headquarters.JPG|thumb|right|The Bourse de Tunis headquarters in Tunis, Tunisia]]
As of 2012, Africa has 23 stock exchanges, twice as many as it had 20 years earlier. Nonetheless, African stock exchanges still account for less than 1% of the world's stock exchange activity.<ref>{{cite journal|title=2013 Guide economique du continentBourses Africaines|journal=Africa 24 |year=2013|issue=8|page=127|editor1-last=Sarl}}</ref> The top ten stock exchanges in Africa by stock capital are (amounts are given in billions of United States dollars):<ref>{{cite journal|title=2013 Guide economique du continentBourses Africaines|journal=Africa 24 |year=2013|issue=8|page=128|editor1-last=Sarl}}</ref> but nowadays there are around 29 stock exchanges in Africa:
* South Africa (82.88)(2014)<ref>{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/south-africa/|archive-url=https://web.archive.org/web/20210105051416/https://www.cia.gov/the-world-factbook/countries/south-africa|url-status=dead|archive-date=5 January 2021|title=The World Factbook – Central Intelligence Agency|website=www.cia.gov|language=en|access-date=2017-09-12}}</ref> * Egypt ($73.04 billion (30 November 2014 est.))<ref>{{Cite web|url=https://www.cia.gov/library/publications/the-world-factbook/rankorder/2200rank.html#eg|archive-url=https://web.archive.org/web/20071211211610/https://www.cia.gov/library/publications/the-world-factbook/rankorder/2200rank.html#eg|archive-date=11 December 2007|title=The World Factbook – Central Intelligence Agency|website=www.cia.gov|language=en|access-date=2017-09-12}}</ref> * Morocco (5.18) * Nigeria (5.11) (actually has a market capitalisation value of $39.27 Bn)<ref>{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/nigeria/|archive-url=https://web.archive.org/web/20210109223449/https://www.cia.gov/the-world-factbook/countries/nigeria|url-status=dead|archive-date=9 January 2021|title=The World Factbook – Central Intelligence Agency|website=www.cia.gov|language=en|access-date=2017-09-12}}</ref> * Kenya (1.33) * Tunisia (0.88) * BRVM (regional stock exchange whose members include Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo: 6.6) * Mauritius (0.55) * Botswana (0.43) * Ghana (.38)
{| class=wikitable |+ African stock exchanges ! Stock exchange name ! City ! Country ! Year founded ! Currency ! Value in USD |- ! Angola Debt and Stock Exchange | Luanda || {{flagcountry|Angola}} || 1995 || Angolan kwanza || |- ! Botswana Stock Exchange | Gaborone || {{flagcountry|Botswana}} || 1995 || Botswana pula || |- ! Cape Town Stock Exchange | Cape Town || {{flagcountry|South Africa}} || 2016 || South Africa rand || |- ! Eswatini Stock Exchange | Mbabane || {{flagcountry|Eswatini}} || 1990 || Eswatini lilangeni || |- !Ethiopian Securities Exchange |Addis Ababa |{{ETH}} |2025 |Ethiopian birr | |- ! Johannesburg Stock Exchange Limited | Johannesburg || {{flagcountry|South Africa}} || 1887 || South Africa rand || |- ! Lusaka Stock Exchange | Lusaka || {{flagcountry|Zambia}} || 1994 || Zambian kwacha || |- ! Malawi Stock Exchange | Blantyre || {{flagcountry|Malawi}} || 1996 || Malawi kwacha || |- ! Namibian Stock Exchange | Windhoek || {{flagcountry|Namibia}} || 1904 || Namibian dollar || |- !Rwanda Stock Exchange |Kigali |{{RWA}} |2011 |Rwandan franc | |- ! Victoria Falls Stock Exchange | Victoria Falls || {{flagcountry|Zimbabwe}} || 2020 || United States dollar || |- ! Zimbabwe Stock Exchange | Harare || {{flagcountry|Zimbabwe}} || 1896 || Zimbabwe dollar || |}
Between 2009 and 2012, a total of 72 companies were launched on the stock exchanges of 13 African countries.<ref>{{cite journal|title=2013 Guide economique du continent Bourses Africaines|journal=Africa 24 |year=2013|issue=8|page=130|editor1-last=Sarl}}</ref>
== See also == {{Portal|Africa|Business and economics}} {{div col|colwidth=25em}} * United Nations Economic Commission for Africa * Africa–China economic relations * African Economic Community * African Economic Outlook * Demographics of Africa * Economic history of Africa * Economy of East Africa * List of largest companies in Africa by revenue * Land grabbing * Languages of Africa * List of countries by percentage of population living in poverty * List of countries by Human Development Index * Central banks and currencies of Africa * List of countries by credit rating * List of countries by future gross government debt * List of countries by public debt * List of countries by leading trade partners * List of countries by industrial production growth rate * List of countries by GDP (nominal) * List of countries by GDP (nominal) per capita * List of countries by GDP (PPP) * List of countries by GDP (PPP) per capita * List of countries by GNI (nominal) per capita * List of countries by tax revenue as percentage of GDP * List of countries by GDP growth {{div col end}}
== References == {{Reflist|30em}}
== Further reading == {{refbegin}} * {{Cite book |last=European Investment Bank |url=https://www.eib.org/en/publications/sustainability-report-2021 |title=EIB Group Sustainability Report 2021 |date=6 July 2022c |publisher=European Investment Bank |isbn=978-92-861-5237-5 |language=EN}} * Fage, J. D. ''A History of Africa'' (Routledge, 4th edition, 2001 {{ISBN|0-415-25247-4}}) (Hutchinson, 1978, {{ISBN|0-09-132851-9}}) (Knopf 1st American edition, 1978, {{ISBN|0-394-32277-0}}) * {{cite journal |last1=Goldsmith |first1=Arthur A. |title=Foreign Aid and Statehood in Africa |journal=International Organization |date=2001 |volume=55 |issue=1 |pages=123–148 |doi=10.1162/002081801551432 |jstor=3078599 |s2cid=154839545 }} * Kayizzi-Mugerwa, Steve ''[https://books.google.com/books?id=YiLaMsvQMBQC The African Economy: Policy, Institutions and the Future]'' (Routledge, 1999, {{ISBN|0-415-18323-5}}) * Laouisset, Djamel (2009). A Retrospective Study of the Algerian Iron and Steel Industry. New York City: Nova Publishers. {{ISBN|978-1-61761-190-2}} * Moshomba, Richard E. ''[https://archive.org/details/africainglobalec0000msho <!-- quote=ISBN1555877184. --> Africa in the Global Economy]'' (Lynne Rienner, 2000, {{ISBN|1-55587-718-4}}) * OECD. ''[http://www.oecd.org/bookshop?9789264033139 African Economic Outlook 2006/2007]'' (OECD, 2007, {{ISBN|978-92-64-03313-9}}) * Rodney, Walter. ''How Europe Underdeveloped Africa''. (Washington: Howard UP, 1982, {{ISBN|0-88258-096-5}}) * Sahn, David E., Paul A. Dorosh, Stephen D. Younger, ''Structural Adjustment Reconsidered: Economic Policy and Poverty in Africa'' (Cambridge University Press, 1997, {{ISBN|0-521-58451-5}}) {{refend}}
== External links == {{Commons category}} {{Spoken Wikipedia|Economy of africa part 1.ogg|date=2009-11-27}} {{Africa in topic|Economy of}} {{Africa topic|Poverty in}} {{Africa topics}}
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