Africa: Economic Overview

GDP

At market exchange rates, the combined GDP of the African Union ranks between France and Italy. However, GDP per head remains the lowest among the G20 members, at around USD 7,500.

Demographics

Africa’s population is projected to increase by nearly one billion over the next 25 years, according to the UN’s median forecast. Unlike most other G20 regions, the share of the working-age population (15–64 years) is expected to rise, creating a significant demographic advantage if employment opportunities can be expanded. Africa has great potential.

Inflation

Inflation remains contained on median IMF forecasts, though there is substantial variation across the continent — from low and stable rates in Morocco to near-hyperinflation in South Sudan.

Growth Prospects

Potential GDP growth of close to 4% over the next 15 years reflects Africa’s young and rapidly expanding workforce. The key question is whether this potential can be realised through sustained investment, productivity gains and improved governance.

Emissions

Africa currently records extremely low emissions per capita. Maintaining this low carbon intensity while continuing to grow would represent a major achievement, not just for Africa but for the world.

Fiscal Position

Debt levels remain elevated across many African economies. The IMF highlights the importance of broadening the revenue base — for instance, by reducing fuel subsidies — though such measures are politically and socially challenging to implement.

External Position

Current account deficits are generally sustainable, but high external debt burdens continue to pose risks to financial stability.

Money and Credit

Broad money growth has accelerated in recent months, reflecting both stronger economic activity and looser financial conditions in several economies.

Governance and Competitiveness

Governance indicators show median performance: corruption scores are average by global standards. Competitiveness, measured across South Africa, Botswana, Nigeria and Ghana, also falls around the global median, highlighting room for institutional and structural improvement.