Elie B. Smith

April 16, 2007 – Released on the 2nd of April this year, the 2007 Africa economic report like that of last year is an in-depth evaluation of 52 African economies. The only country excluded in the report is the chaotic segment of Somalia. But sadly, the much more stable and democratic Somaliland has not been taken into account because, the African Union and the United Nations are yet to recognise her ( Somaliland). Hopefully, the recognition of Somaliland will be achieved by the end of this year or early next and her economic prowess will be made known to Africa and the world. The theme of this year’s report is: “Accelerating Africa’s development through diversification.” The 2007 Africa economic report is a 200 page book that is divided into two parts with six chapters evenly shared. All facades of 52 African economies have been studied, evaluated and propositions made where necessary.

Hence the report has been able to publish the real GDPs and per capita incomes of all African economies and the results are surprising, for they do not reflect the impression that mainstream media outfits make of the continent. However, such a detail report won’t have been possible without the help of the United Nations and this year’s economic report saw the light of day under the supervision of the United Nations Economic Commission for Africa. Besides publishing the GDPs and per capita incomes of African states, the report also contains challenges facing African economies and recommendations susceptible of helping them out.

The authors of the report are of the opinion that, publishing such reports will spark and stimulate discussions and exchanges of ideas amongst African leaders and decision makers. Such debates, they hope, shall force African leaders to seek appropriate ways and means of moving their respective and continental economies forward for the benefit of the masses. Noteworthy in this year’s report are the excellent economic performances of African economies in all aspects (Agriculture, mineral and Oil and services).

Mixture of Good and Bad news

Sadly, while African economies are growing, the growth rates are not strong enough to reduce poverty and also attain the UN’s Millennium Development Goals. Africa’s 2006 economic growth was 5.7%, but it was inferior to 7.3% being the average growth rate registered by other developing economies elsewhere and also largely adrift in comparison with the 8.7 % growth registered by Asian countries. Nevertheless, with an average growth hovering between 5% and 6%, the continent’s economic growth rate is twice faster than her population growth.

This simply means that, all those like President Matthew Olusegun Obasanjo of Nigeria who are calling for population control in Nigeria and the rest of the continent may not really know what they are talking about. Another piece of good news contained in the report is that, contrary to the 80’s and 90’s, individual African revenues are on the increase. Even though the continent’s economic fortunes are improving, her economic influence in the world is still small or outright insignificant. This is so because, African economies are largely exporters of raw materials, but the only exception to the rule is the Republic of South Africa, which has a strong diversified and industrial manufacturing base.  

Top 12 largest and strongest African economies

Africa economic report won’t have its zest if it does not have who is who of African economies. Like year, the top 12 largest African economies are the same with some slide modification at the top of the chart. The Republic of South Africa remains the biggest and strongest African economy with a GDP $ 272.2 billion and the second largest and strongest African economy is Nigeria with a GDP of $ 141.3 billion the third is Algeria with a GDP of $ 137.2 billion and the fourth largest and biggest African economy is Egypt with a GDP of $ 111.8 billion. The changes noted in the classification this year are the great leap forward of Angola and war ravaged Sudan.   Angola , which is recovering from 25 years civil war, has over taken the Kingdom of Morocco as the fifth largest African economy with a GDP of $ 66.1 billion.

Morocco is now the sixth largest African economy with a GDP of $ 61.1 billion; Libya is the seventh largest African economy with a GDP of $ 56.0 billion. Sudan is the eighth largest African economy with a GDP of $ 45.7 billion, Tunisia is ninth with a GDP of $ 33.1 billion, Zimbabwe is tenth with a GDP of $ 26.4 billion, Kenya is eleventh with a GDP of $ 24.8 billion and Cameroon is twelfth with a GDP of $ 20.1 billion. Meanwhile, Ivory Coast, the erstwhile largest and strongest French-speaking black African economy is thirteenth with a GDP of $ 18.7 billion.

Surprises

But there also some extraordinary improvements noticed from unexpected countries. They are the performances of Ethiopia whose GDP stands at $ 15 billion and are ranked fourteenth largest African economy, Tanzania with a GDP of $ 14.3 billion and ranked fifteenth with a GDP of $ 13.1 billion and Ghana sixteenth with a GDP of $ 12.2 billion. The mercurial rise of Angola 5th largest African economy and Sudan 8th largest and Zimbabwe 10th largest African economy in spite the reported chaotic situations shows that, if proper democracy and free market economic principles were applied in African economies far much more great improvements would have been noticed than the current cases.

Top 12 per capita African countries & stunted growth countries

This year’s report also has Africa’s largest per capita income countries. The top 12 countries are: Libya $ 99306, Equatorial Guinea $ 8962, Seychelles $ 8256, Botswana $ 7631, Gabon $ 6877, South Africa $ 5689, Mauritius $ 5172, Angola $ 4091, Namibia $ 3355, Tunisia $ 3180 and Swaziland $ 2492. Interestingly the report also has the list of African countries that have succeeded in diversifying their economies. The countries are Egypt, Tunisia, Morocco and South Africa that has by far the largest and most advance diversified and industrial economy.

2006 best economic performers/ 2007 best economic performers

Countries that have registered the least economic growth on the continent are: the Comoros, Seychelles, Ivory Coast, Swaziland and Zimbabwe. In 2006 the African countries that registered the strongest economic growths were: Angola 17.6%, Mauritania 14.1%, Sudan 9.6%, Ethiopia 8.6%, Liberia 8.1%, Libya 8.1%, Mozambique 7.9%, Congo 7.5%, Malawi 6.9% and the Democratic Republic of Congo (DRC) 6.4%.   And this year, the top 10 countries that will register big economic growths are: Angola 31.4%, Sudan 11.3%, Mauritania 10.6%, Equatorial Guinea 9.4% Liberia 7.3%, Tanzania 7.3% DRC 7.2%, Burundi 6.6%, Sierra Leone 6.5% and Nigeria 6.4%.

Notes:

The 2007 African report can be read free of charge by logging onto the web site of the Economic Commission for Africa: www.uneca.org

Source: African Path