Source: BUSINESS DAY
Five African countries contribute nearly half of the continent’s total Gross Domestic Product (GDP) in 2024. These nations, often referred to as the “Big Five Economies,” together account for $1.445 trillion of Africa’s economic output.
In comparison, the remaining 48 African countries have a combined GDP of $1.4 trillion. While these five countries are economically significant, their economies are driven by different factors.
Collectively, the Big Five economies represent a population of approximately 569 million people according World Bank, contributing a substantial portion of Africa’s GDP, though their economic structures differ considerably.
According to data sourced from the International Monetary Fund, here are 5 countries that contribute to half of Africa’s $1.4 tn GDP
South Africa
South Africa leads the list with a GDP of $373.23 billion. The country’s financial and manufacturing sectors are major contributors to its economy. The mining industry plays a vital role, contributing around 8% to GDP. South Africa is a significant global producer of platinum group metals, gold, and chromium, commodities that support both local industry and exports.
Egypt
Egypt, with a GDP of $347.59 billion, plays a pivotal role in global trade due to its control over the Suez Canal. This strategic waterway generates substantial revenue for the nation, with fees from ships passing between Europe and Asia. Additionally, Egypt’s tourism sector contributes significantly to the economy, driven by its wealth of historical and cultural attractions.
Algeria
Algeria’s economy, valued at $266.78 billion, is heavily reliant on its natural gas exports. The country is one of the leading exporters of natural gas globally, which forms the backbone of its economic structure. Domestic industries are also closely linked to the energy sector, with oil and gas production making up a large portion of the country’s economic output.
Nigeria
Nigeria’s GDP of $252.74 billion stems largely from its energy sector, but the country focuses on crude oil rather than natural gas. As Africa’s largest oil producer, the oil industry is a key driver of the Nigerian economy. Despite this, Nigeria’s economy is more diversified than some may assume, with sectors like agriculture and telecommunications playing increasingly important roles.
Ethiopia
Ethiopia rounds out the list with a GDP of $205.13 billion. Unlike the other Big Five economies, Ethiopia’s economic strength lies in agriculture. Coffee is a critical export product, and agricultural activities support the livelihoods of a large portion of the country’s population. Industrial development has been growing, but the agricultural sector remains central to the nation’s economy
THE AUTHOR: Chisom Michael is a data analyst (audience engagement) and writer at BusinessDay, with diverse experience in the media industry. He holds a BSc in Industrial Physics from Imo State University and an MEng in Computer Science and Technology from Liaoning Univerisity of Technology China. He specializes in listicle writing, and profiles, and leveraging his skills in audience engagement analysis and data-driven insights to create compelling content that resonates with readers.
