Fast-Growing African Economies You Can Invest In

Investing in Africa has been on the rise and many countries are not taking it lightly. In this article, Investingport will be showing you a list of fast growing African economies and how they have performed in the past years. 

5 Fast Growing African Economies You Can Invest In

Egypt

In 2019, Egypt attracted more foreign direct investment (FDI) than any other African country. The number of greenfield FDI projects in the nation reached 140 in 2019, a 52% increase from 2018. This was the greatest number recorded in the country between 2003 and 2020. Egypt has been successful in luring foreign direct investment (FDI) in recent years; prior to Covid-19, the country garnered over 10% of FDI into Africa thanks to investments in automotive, financial services, agricultural, and information and communication technology.

Botswana

Economic growth in Botswana is projected to reach 9.7 percent in 2021, making it one of Africa's fastest-growing economies. According to the official budget strategy document, the government expects GDP to expand by 4.3% in 2022. Inflation has decreased somewhat, and GDP has topped $18 billion in both 2018 and 2019.

The nation also intends to put its energy reserves to good use. By 2027, they want to have reached a point where they are really exporting power. To develop a big solar project in the two southern African countries, Botswana, Namibia, and the United States signed a statement of intent in 2021. The range of energy production from this is 3,000–5,000 megawatts. If successful, it will catapult the country to the forefront of solar power production and export.

Morocco

Prior to the arrival of Covid-19, Morocco's GDP had increased annually since 2016, hitting a peak of $119.7bn in 2019. The average rate of growth for the country is 4.5 percent each year.

The country's economy rebounded in 2021 after two years of drought due in large part to a bumper crop that year. The Minister of Agriculture in Morocco, Mohamed Sadiki, has predicted that the country's agricultural success will continue, saying, "Citrus output is forecast to grow by 14% and olive production by 21% compared with the previous season."

The Green Generation 2020-2030 plan for Moroccan agriculture was also recently put into effect. The program's main goals are to increase agricultural exports to $6.6bn by 2030, create roughly 350,000 new employment, and encourage young people to invest in one million hectares of arable land.

With 111 FDI projects registered in 2019, an all-time high was reached, representing a year-over-year growth rate of 56%. Investors will find the nation welcoming because it ranks third in Africa in the World Bank's Ease of Doing Business index for 2020, up 1.7 points from the previous year.

Ghana

Ghana's gross domestic product (GDP) has been on the rise since 2016, and it is expected to reach a peak of $72 billion in 2020. In 2019, its economy was said to be the most rapidly expanding in Africa. Compared to its peers, the country is less reliant on oil revenue, therefore it has been able to weather the current decline in oil prices.

Tanzania

The GDP of Tanzania has been on the rise since 2016, and is projected to reach $62.4bn in 2020, an increase of nearly 6% over the previous five years. Because of the stabilization of food prices, inflation dropped to 3.3% in 2020. According to the study 2020 African Economic Outlook, Tanzania's economy was one of the top ten fastest-growing economies in the world in that year.

The nation will become middle-income by the year 2020. The goal of Tanzania's Development Vision 2025 is to help the country into the middle class by that year. Tanzania's GDP is expected to expand by 4.9% in 2022 and 6.3% in 2023, according to projections from the African Development Bank.