African economies in the past few years have been blighted by geopolitical, climatic and macroeconomic shocks resulting in a tepid post pandemic recovery curtailing growth of the fastest growing countries in the region.
These shocks resulting in supply chain disruptions have led to high food and energy prices and worsened standards of living across the continent.
Elevated food and energy inflation exacerbated by currency weaknesses in many countries has pushed more people into hunger and worsened the humanitarian situation in Africa most especially in West and Central Africa where an estimated 55 million people are expected to go hungry in 2024.
However, the tide of inflation seems to be turning in 2024 compared to 2023 where average inflation in the continent stood at 17% according to the African Development Bank (AfDB). The World Bank projects that 70% of African countries are set to register lower inflation figures in 2024 compared to the past year. Although, 13 countries including Nigeria, Ethiopia and others have rising inflation.
Also, exchange rate pressures have propelled Central Banks of many countries in Africa to embark on a hawkish monetary policy stance. This was due to tighter financial conditions, a strong U.S. dollar, and foreign exchange market reforms. The Nigerian Naira led the pack of worst performing currencies in Africa in 2024 so far losing almost 50% of its value followed by the Ethiopian Birr and the Kenyan shilling losing 30% and 21% respectively.
There has been a mixed reaction to the twin threats of inflation and currency weakness in Africa- while some Central Banks have joined the global wave of easing interest rates, others have taken a more cautious approach- and continue to tighten MPR as inflation remains stubborn.
Despite these macroeconomic malaises, Africa remains the second fastest growing continent in the world- only trailing Asia. In 2023, growth in Sub-Saharan Africa stood at 2.4% and rose to 3% in 2024. The World Bank projects growth to reach 4% in 2025 and 2026. Growth in the region was largely impacted by the collapse of the Sudanese economy over the raging civil war in the country which when excluded will put the regions GDP growth at 3.5% in 2024.
In the East and Southern Africa region economic growth is expected to rise to 3.9% in 2025- 2.2% in 2024. However, South Africa and Angola seems to be dragging the regions down as the region is projected to grow by 5.3% excluding these two countries.
Rwanda, Kenya, Tanzania and Uganda contributed significantly to making East Africa the best performing region in the continent.
West and Central Africa’s biggest economy poses a lag to the region’s growth which is projected at 4.2% in 2025 mainly propelled by fast growth in Niger, Benin and Cote d’Ivoire. However, excluding Nigeria’s the region will is forecast to grow by 5.1% in 2025-2026.
The World Bank in its Africa Pulse for 2024 and Middle East and North Africa (MENA) update projected growth of African countries in 2025. This article looks at the top ten fastest growing countries by GDP in Africa in 2025.
10. Zambia
This Southern African country is projected to grow at 6.1% in 2025- a sharp spike considering the country’s 2.0% growth in 2024. Risk to the outlook stems from significantly high inflation projected to decelerate to 12.1% in 2025 from 15% this year.
The country’s currency- the Zambian Kwacha is one of the worst performing currencies in the continent losing over 30% of its value in 2024 so far after the Central Bank notified the public of moving to a market driven exchange rate system.
09. Zimbabwe
This country’s economy is projected by the World Bank to grow at 6.2% in 2025- an increase from the projection of 2.0% in 2024. The country’s inflation is projected to accelerate to 8.4% in the coming year from 6.0% in 2024. In the past few years, inflation in this country reached over 200% on the back of severe depreciation of its local currency- the Zimbabwean dollar.
Risk to the outlook include the effect of climate change induced El Nino which affects production of key staple such as maize. Also, the country has also seen natural disasters such as flooding like its other Southern African counterpart in 2024 so far.
08. Uganda
The World Bank provided the same economic growth projection for both Zimbabwe and Uganda at 6.2% in 2025. The country’s GDP growth projection for 2025 represents a 0.2 percentage points increase compared to its projection for 2024. GDP growth in Uganda is one of the highest across the East Africa region.
The country in the past 18 months has seen inflation fall to stable levels resulting in monetary policy authorities to begin the easing cycle with a 25 basis points cut in MPR. In 2023, inflation in the country stood at 8.8%- this dropped to 3.2% in 2024 and consumer prices in the coming year is projected to remain stable at 4.6%.
07. Republic of Benin
This West African nation is forecast to see 6.4% GDP growth in 2025 which has helped in no small measure to boost economic expansion in the West African region.
In the past five years, the country has posted GDP growth above 5% whilst maintaining inflation under 3% dating back to 2020.
06. Cote D’Ivoire
The World Bank projects growth in this West African country to reach 6.4% in 2025- one of the strongest performers in the West African region. This growth is underpinned by strong private consumption and capita deepening as well as exploitation of recent oil discoveries in the country.
In the past four years, the country has seen GDP growth above 6% and barring the pandemic in 2020, growth has average 7.5% dating as far as 2010.
Inflation in the country is projected to decline by 0.6 percentage points to 3% next year from 3.6% in 2024.
05. Ethiopia
with GDP growth at 6.5% in 2024 according to the World Bank projection, Ethiopia is the fifth fastest growing economy in Africa. The country has been a consistent performer in the region recording over 6% growth in the last five years including during the pandemic in 2020.
The major risk to the currency outlook is severe currency weakness- the Ethiopian Birr is among the worst performing currencies in the continent losing 30% of its value as of August 2024 and would likely have a pass-through effect on inflation.
Also, natural disasters such as droughts and floods have negatively impacted agricultural output in the past few years with crop failure in some years hovering around 50% to 90%.
04. Rwanda
this country sits joint third with Mauritania as the third fastest growing economy in the Africa with the World Bank projecting its GDP to grow by 7.8% in 2024.
The GDP growth projection for 2025 is an improvement from 7.6% recorded in 2024. Inflation in the country for 2025 is projected to decelerate to 5.0% in 2025 from the projected 6.8% this year.
03. Mauritania
the World Bank puts the country’s economic growth for 2025 at 7.8%- making her the joint third fastest growing economy on the continent. The projection represents an increase of 1.3 percentage points from the 2024 forecast of 6.5%.
Inflation in the country is forecast to decline to 2% from 2.7% in 2024.
02. Niger
despite a coup and severing of its membership of the ECOWAS in the year, Nigeria is on track to become the second fastest growing economy in the continent in 2025 with the World Bank putting GDP growth at 8.5% in 2025.
This is an improvement from the 5.7% projected GDP growth in 2024 which has strengthened economic activities in the West African region.
01.Libya
the fastest growing economy in Africa in 2025 according to the World Bank is conflict and unstable Libya projected to grow at 10.7% in 2025. The impressive GDD growth projection is underpinned by recovery from the contraction of 10.1% in 2024.
The outlook for Libya is a downgrade compared to the Bretton Wood institute projection earlier in the year.
The outlook for Libya is marred by conflict and political instability which has severely affected oil production in the country. Further distabilisation in the Middle East with the toppling of the Assad led Syrian regime and uncertainties in the conflict between Israel and Hamas could potentially upend the potential recovery.
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