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African Countries Set to Lead Global Economic Growth in 2024: ECA Report Highlights

Several African nations are on track to become the world's fastest-growing economies in 2024, led by advancements in sectors ranging from hydrocarbons to agriculture.

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Olalekan Adigun
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African Countries Set to Lead Global Economic Growth in 2024: ECA Report Highlights

African Countries Set to Lead Global Economic Growth in 2024: ECA Report Highlights

According to the Economic Commission for Africa (ECA), several African nations are positioned to top the list of the world's fastest-growing economies in 2024. Adam Elhiraika, the Director of the Macroeconomics and Governance Division at ECA, revealed that Africa's rapid growth trajectory, second only to East and South Asia, is set to continue through 2024 and into 2025, with Niger, Senegal, Ivory Coast, DRC, and Rwanda spearheading this advancement.

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Drivers of Growth: From Hydrocarbons to Agriculture

Niger and Senegal are anticipated to witness substantial economic growth mainly due to an uptick in hydrocarbon production and exports. In Niger, a revival in agricultural production and a boost in crude oil production are expected to enhance the transportation sector, despite the challenges posed by unfavorable weather conditions and recent political instability. Meanwhile, Senegal's growth is projected to be fueled by an increase in private and infrastructure investments. Elections held across 15 African nations this year, including Senegal's recent presidential elections, could influence short-term growth and development trajectories.

Infrastructure and Diversification: Ivory Coast, DRC, and Rwanda

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The robust economic expansion in Ivory Coast, DRC, and Rwanda is attributed to increased infrastructure investment, continuous tourism development, the mining industry's good performance, and the benefits of economic diversification. The DRC's growth is expected to be driven by the extractive sector, alongside agriculture, services, and mining, in line with national strategies to enhance social and investment expenditures. Rwanda's economic surge is likely powered by private consumption and investment, whereas Ivory Coast's growth is seen as a result of pro-competitive market reforms and business environment improvements, alongside decreased inflation boosting private consumption.

Challenges and Recommendations for Sustained Growth

Despite the optimistic growth projections, Africa's economic stability remains precarious, necessitating significant policy shifts to realize the Sustainable Development Goals (SDGs) and Agenda 2063 target. The global economic resilience observed in 2023, characterized by declining energy and food prices and improved economic conditions in China and the US, still presents an uncertain outlook for Africa, with high debt, increasing borrowing costs, and geopolitical risks posing significant challenges. The ECA report emphasizes the need for revitalizing trade, mobilizing domestic resources, and implementing structural reforms to bolster economic resilience and growth across the continent.

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