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Business Insider
4 days ago
- Business
- Business Insider
Top 10 African countries with the highest leap in GDP growth rate in 2025
In 2025, many African countries are experiencing slower real GDP growth compared to 2024, primarily due to global trade uncertainties and domestic fiscal challenges. Business Insider Africa presents the top 10 African countries with the highest GDP growth in 2025 compared to last year. This list is courtesy of the Africa Pulse report by the World Bank. Sudan ranks number 1 on the list. Despite these hurdles, some African countries are expected to experience stronger real GDP growth in 2025 compared to the previous year, indicating resilience and potential benefits. Despite these hurdles, some African countries are expected to experience stronger real GDP growth in 2025 compared to the previous year, indicating resilience and potential benefits. These countries' better development paths provide several benefits. First, faster economic growth indicates resilience, particularly in a global climate characterized by inflation, monetary tightening, and trade disruptions. Such success boosts investor trust and has the potential to enhance foreign direct investment. A country that continues to thrive while others stagnate attracts global investment, which can be reinvested in essential areas such as energy, education, healthcare, and transportation. Higher GDP growth may boost foreign direct investment, create more job opportunities, and provide governments with more budgetary room to invest in social services and infrastructure. Furthermore, strong economic growth can boost investor confidence and promote regional stability. For example, Uganda's anticipated 7.5% growth rate in 2025, up from 5.9% in 2024, is likely to be driven by advances in agriculture, infrastructure development, and oil exploration investments. Additionally, as economic activity increases, governments have more funds to implement social programs, pay down debt, and enhance their resilience to future economic shocks. These nations can serve as anchors of stability and economic power in their respective areas, affecting trade patterns and regional integration. In a year when many economies are stalling, African countries with strong growth are distinguishing themselves by establishing the basis for long-term benefits, increased global importance, and higher quality of life for their people. With that said, here are the African countries with the largest leap of real GDP growth this year, from last year, as per the Africa Pulse Report by the World Bank. Top 10 African countries with the highest leap in GDP growth rate in 2025 Rank Country Real GDP growth rate 2025 Real GDP growth rate 2024 1. Sudan 5.0% -13.5% 2. Zimbabwe 6.0% 2.0% 3. Zambia 6.2% 4.0% 4. São Tomé and Príncipe 3.1% 0.9% 5. Senegal 7.9% 5.8% 6. Mozambique 3.0% 1.8% 7. Guinea 6.7% 5.7% 8. Mali 4.8% 4.0% 9. Seychelles 3.1% 2.4% 10. Central Africa Republic 2.1% 1.5%
Business Insider
21-05-2025
- Business
- Business Insider
Top 10 African countries with the lowest general government debt (% of GDP)
Several African countries have resorted to borrowing in order to satisfy their financial obligations as they work toward ambitious development objectives. This could lead to an unsustainable general government debt if handled poorly, however some African countries have handled their debt load expertely. Business Insider Africa presents the top 10 African countries with the lowest general government debt (% of GDP). This list is courtesy of the Africa Pulse report by the World Bank. DRC ranks number 1 in the list. When a country's government debt is low in comparison to its GDP, it creates opportunities for a variety of economic advantages, ranging from investor confidence to long-term stability. This may seem illogical in Africa, where development finance is in high demand. Low debt, when handled properly, enables more strategic borrowing, better policy freedom, and higher long-term growth. Across Africa, many countries are under increasing pressure to fund development projects, create infrastructure, and respond to economic shocks. While borrowing can assist in satisfying these demands, keeping general government debt to a low proportion of GDP is increasingly seen as a significant benefit. Countries that can maintain their debt burdens low level are better positioned for long-term economic growth, financial stability, and development independence. General government debt is the total amount owed by all levels of government (central, regional, and local). When expressed as a proportion of a country's GDP, it clearly shows how manageable a country's debt is in comparison to the size of its economy. A low debt-to-GDP ratio shows that a government is in control of its debt levels and has the economic strength to satisfy its financial obligations without burdening future budgets or generations. Consistently low debt levels in countries such as Botswana and Eswatini have led to stable economies, making them appealing locations for investors seeking secure and trustworthy emerging markets. When a government does not have to spend a big amount of its budget repaying debts, it may devote more resources to critical services. This implies that additional public funds may be devoted to building schools, hospitals, increasing road, energy, and water availability. With that said, here are the 10 African countries with the lowest general government debt as a percentage of their GDP, according to the Africa Pulse report by the World Bank. Top 10 African countries with the lowest general government debt (% of GDP) Rank African country General goverment debt as a % of GDP 1. Democratic Republic of Congo 26.0% 2. Ethiopia 28.4% 3. Equatorial Guinea 31.5% 4. Chad 32.3% 5. Comoros 37.6% 6. Sierra Leone 37.9% 7. Cameroon 39.2% 8. Botswana 39.7% 9. Guinea 41.3% 10. São Tomé and Príncipe 40.3%
Business Insider
20-05-2025
- Business
- Business Insider
Top 10 African countries with the largest general government debt (% of GDP)
As African governments pursue ambitious development goals ranging from infrastructure renovations to expanded healthcare and education, several have turned to borrowing to meet their financial demands. Business Insider Africa presents the top 10 African countries with the largest general government debt (% of GDP). This list is courtesy of the Africa Pulse report by the World Bank. Eritrea ranks number 1 in the list. While borrowing is a normal and often necessary economic instrument, it becomes problematic when the general government's debt exceeds the size of the economy. General government debt, expressed as a proportion of GDP, is an important indication of a country's financial health. This figure has been increasing throughout Africa, raising concerns about long-term sustainability. When a country's general government debt as a percentage of GDP rises too high, it can have major consequences for economic development, stability, and the well-being of its people. One of the most obvious implications of rising government debt is less flexibility in national budgets. Countries are required to devote major percentages of their revenue to debt servicing, paying back interest and principal, rather than investing in key areas like health, education, infrastructure, and social security. For example, in Ghana and Kenya, rising debt levels have resulted in budget cuts for key services. This not only delays growth but also disproportionately impacts the most disadvantaged groups. A high debt-to-GDP ratio can lead to debt distress, which occurs when a country is unable to satisfy its debt commitments without external assistance or restructuring. This frequently results in involvement from entities such as the International Monetary Fund (IMF), which may impose policy conditions requiring austerity measures. Additionally, credit rating companies such as Moody's, Fitch, and Standard & Poor's regularly monitor countries' debt levels. A high general government debt-to-GDP ratio frequently leads to credit rating downgrades, making foreign capital market access more expensive and complicated. This reduces a country's capacity to access money for development initiatives, requiring governments to resort to more expensive and risky kinds of borrowing. With that said, here are the 10 African countries with the highest general government debt as a percentage of their GDP, according to the Africa Pulse report by the World Bank. Top 10 African countries with the largest general government debt (% of GDP) Rank African country General goverment debt as a % of GDP 1. Eritrea 202.4% 2. Sudan 142.7% 3. Cabo Verde 104.6% 4. Senegal 99.9% 5. Mozambique 96.8% 6. Congo Republic 89.6% 7. Mauritius 87.5% 8. Rwanda 84.8% 9. Malawi 81.9% 10. Guinea-Bissau 80.5%
Business Insider
15-05-2025
- Business
- Business Insider
Resource-rich African countries are less likely to fend off poverty
While economic development in Sub-Saharan Africa is improving, it is still insufficient to significantly reduce poverty levels in the area. Economic growth in Sub-Saharan Africa is projected to reach 3.5% in 2025 and 4.3% during 2026-27. Per capita income growth in the region, anticipated to accelerate to 1.8% by 2027. Poverty levels measured at $2.15 per day are expected to rise to 43.9% in 2025. Despite predictions of 3.5% economic growth in 2025 in Sub-Saharan Africa, and 4.3% in 2026-27, this rate falls short of the substantial expansion required to make a significant impact on the sub-continent's poverty reduction. The Africa Pulse report by the World Bank made this known, stating, 'The economic growth forecast of Sub-Saharan Africa by 2025-2027 will not be sufficient to reduce extreme poverty significantly, and meet people's expectations.' 'Although income per capita for the region as a whole is expected to accelerate to 1.1% in 2025, and firm up at 1.8% in 2026-27, it would be insufficient to reduce poverty significantly.' According to the World Bank, in Sub-Saharan Africa, a 1% rise in per capita GDP leads to just a 1% reduction in severe poverty. This is far lower than the global average, when a comparable GDP gain generally results in a 2.5% reduction in poverty levels. This difference suggests that the region's economic progress does not successfully convert into improved living conditions for the majority. 'The pace of economic expansion in the region remains below the growth rate of the previous decade (2000-2014) and is insufficient to have a significant effect on poverty reduction,' the global lender revealed. Additionally, structural inequities, such as those in access to education, healthcare, and financial services, impede the equitable distribution of economic benefits. This, unfortunately, denotes that the poverty rate in the region is expected to go up till 2027. 'Forecasts for 2025-27 indicate that the poverty rate measured at the $2.15 per capita per day international line in 2017 purchasing power parity will continue to rise to 43.9% in 2025 before dropping to 43.2% in 2027.' The report highlights that this extreme poverty rate is concentrated in a few countries in SSA, however, it points out a strange phenomenon in which countries expected to curb poverty are more at risk. 'Non-resource-rich countries are expected to continue reducing poverty faster than resource-rich countries. Thanks to prices of agricultural commodities, non-resource-rich countries will see higher growth overall despite fiscal pressures,' the report reads. 'Conversely, resource-rich countries are expected to grow at the same rate given decelerating oil prices,' it adds. The World Bank goes on to suggest that to effectively eradicate poverty, Sub-Saharan Africa must prioritize inclusive growth measures that address structural disparities. Improving access to financial services and markets can help people engage more fully in the economy.
Business Insider
15-05-2025
- Business
- Business Insider
Resource-rich African countries are less likely fend off poverty
While economic development in Sub-Saharan Africa is improving, it is still insufficient to significantly reduce poverty levels in the area. Economic growth in Sub-Saharan Africa is projected to reach 3.5% in 2025 and 4.3% during 2026-27. Per capita income growth in the region, anticipated to accelerate to 1.8% by 2027. Poverty levels measured at $2.15 per day are expected to rise to 43.9% in 2025. Despite predictions of 3.5% growth in 2025, and 4.3% in 2026-27, this rate falls short of the substantial expansion required to make a significant impact on poverty reduction. The Africa Pulse report by the World Bank made this known, stating, 'The economic growth forecast of Sub-Saharan Africa by 2025-2027 will not be sufficient to reduce extreme poverty significantly, and meet people's expectations.' 'Although income per capita for the region as a whole is expected to accelerate to 1.1% in 2025, and firm up at 1.8% in 2026-27, it would be insufficient to reduce poverty significantly,' the report adds. According to the World Bank, in Sub-Saharan Africa, a 1% rise in per capita GDP leads to just a 1% reduction in severe poverty. This is far lower than the worldwide norm, when a comparable GDP gain generally results in a 2.5% reduction in poverty levels. This difference suggests that the region's economic progress does not successfully convert into improved living conditions for the majority. 'The pace of economic expansion in the region remains below the growth rate of the previous decade (2000-2014) and is insufficient to have a significant effect on poverty reduction,' the global lender revealed. Additionally, structural inequities, such as those in access to education, healthcare, and financial services, impede the equitable distribution of economic benefits. This, unfortunately, denotes that the poverty rate in the region is expected to go up till 2027. 'Forecasts for 2025-27 indicate that the poverty rate measured at the $2.15 per capita per day international line in 2017 purchasing power parity will continue to rise to 43.9% in 2025 before dropping to 43.2% in 2027.' The report highlights that this extreme poverty rate is concentrated in a few countries in SSA, however, it points out a strange phenomenon in which countries expected to curb poverty are more at risk. 'Non-resource-rich countries are expected to continue reducing poverty faster than resource-rich countries. Thanks to prices of agricultural commodities, non-resource-rich countries will see higher growth overall despite fiscal pressures,' the report reads. 'Conversely, resource-rich countries are expected to grow at the same rate given decelerating oil prices,' it adds. The World Bank goes on to suggest that to effectively eradicate poverty, Sub-Saharan Africa must prioritize inclusive growth measures that address structural disparities.
