It is widely known that Africa is the world’s poorest continent. Many reasons for this can be traced back to colonial times and the beginning of the modern era. Compounded problems have created a dynamic in which major challenges exist in Africa, giving rise to even more challenges as time has passed. Nevertheless, Africa is also extremely rich in resources and potential for wealth. Far from being a place uniformly affected by poverty, much of Africa is actually very wealthy.
So, what are the wealthiest countries in Africa?
Metrics to Determine the Wealthiest Countries
Determining which countries in Africa are the wealthiest is not a simple task. There are many variations on what one could consider wealth and how it can be applied. Here, total GDP is used, as well as GDP per capita. In both instances, the data can be adjusted to Purchasing Power Parity (PPP) which essentially takes into account the cost of living in different countries.
South Africa Is #1 for Total GDP
According to a report published by Statista on July 8, 2024, South Africa holds the top spot for nominal GDP in Africa, standing at USD 403 billion. Close behind is Egypt with USD 380 billion, followed by Algeria with USD 260 billion and Nigeria with USD 200 billion.
Much of the combined wealth in these countries is derived from the oil industry. South Africa, however, is not an oil-rich country. The economy of South Africa is diverse, with the finance and real estate sector providing the lion’s share of GDP output. Manufacturing, trade, catering and accommodation, and transport are also significant contributors, while the mining industry, previously the driving force behind the South African economy, provides a valuable supporting role.
Seychelles is #1 for GDP per Capita
Calculating GDP per capita provides a picture of what the average person in a country is able to earn. The Statista report from July 23, 2024, puts the Seychelles at the top of the list with a GDP per capita of USD 21,870, while Mauritius has a GDP per capita of USD 12,970. Behind them is Gabon at USD 9,310, Botswana at USD 7,870 and Libya at USD 6,970.
The Seychelles is an archipelago of 115 islands in the Indian Ocean and is famous for its idyllic location and beautiful vistas, making it a top tourist destination. The tourism sector accounts for around half the country’s GDP output.
Per capita, the Seychelles tops the list, followed by Mauritius, Botswana, Equatorial Guinea, and Libya.
Egypt Shines When Adjusted for PPP
When adjusted for PPP (Purchasing Power Parity), the situation looks slightly different. From data according to the International Monetary Fund, Egypt tops the list at 2.2 trillion international dollars (a hypothetical unit of currency that has the same purchasing power parity that the USD has in the United States). Nigeria is in second place with 1.4 trillion, and South Africa is in third place with 1 trillion. Behind them is Algeria at 826 billion.
Three Answers for Three Methods
Ultimately, there are three answers to this question depending on the context. In terms of nominal GDP, South Africa is the wealthiest. When adjusted for PPP, Egypt becomes the wealthiest. And when per capita income is calculated, the Seychelles tops the list.
