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The fastest growing African Economies

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The Economist Corporate Network (ECN) says that for the past twenty years, the center of the global economy has been shifting from the developed to the developing world. Today, growth rates in developing economies are many times higher than in developed economies. Sub-Saharan Africa, in particular, is one notable case in point. In 2015 Sub-Saharan Africa’s GDP is expected to grow at 4.5%, making it the fastest-growing economic zone in the world, outpacing Asia’s regional average of 4.3% annual growth.

The African Exponent has compiled a list of 7 countries with the highest projected compounded annual growth rate (CAGR) from 2014 through 2017 based on the forecasts from the World Bank’s Global Economic Prospects.

These countries are certainly not the most developed ones, but their economic progress is praiseworthy.

6. Rwanda

2015 GDP: +7.00%

2016 GDP: +7.00%

2017 GDP: +7.50%

2014-2017 GDP CAGR: +7.12%

Economy: 90% of the population works in subsistence agriculture, while tourism, minerals, coffee, and tea round out Rwanda’s economy. Though the country has taken significant steps forward since the 1994 genocide, 45% of the population still lives below the poverty line.

Source: World Bank, CIA World Factbook

5. Tanzania

2015 GDP: +7.20%

2016 GDP: +7.10%

2017 GDP: +7.10%

2014-2017 GDP CAGR: +7.15%

Economy: Tanzania has recently seen high growth rates because of gold production and tourism. The economy also runs on telecommunications, banking, energy, and mining, as well as agriculture. In terms of per capita income, however, the country is one of the poorest in the world.

Source: World Bank, CIA World Factbook

4. Mozambique

2015 GDP: +7.20%

2016 GDP: +7.30%

2017 GDP: +7.30%

2014-2017 GDP CAGR: +7.30%

Economy: Mozambique has attracted large investment projects in natural resources, which means the country’s high growth rates should continue. Some analysts believe that Mozambique might be able to generate revenues from natural gas, coal, and hydroelectric capacity greater than its donor assistance within five years.

But the vast majority of the country works in subsistence agriculture, and over half the population remains below the poverty line.

Source: World Bank, CIA World Factbook

3. Cote d’Ivoire

2015 GDP: +8.00%

2016 GDP: +7.70%

2017 GDP: +7.50%

2014-2017 GDP CAGR: +7.80

Economy: About two-thirds of the population works in agriculture-related industries. The country is the world’s largest producer and exporter of cocoa beans and is also a major player in the coffee and palm-oil industries.

Source: World Bank, CIA World Factbook

2. Democratic Republic of the Congo

2015 GDP: +8.00%

2016 GDP: +8.50%

2017 GDP: +9.00%

2014-2017 GDP CAGR: +8.62%

Economy: The Democratic Republic of Congo has huge natural-resource wealth, which it hasn’t been able to efficiently monetize because of systemic corruption, conflict, and political instability. That said, its economy is slowly recovering since the tumultuous 1990s.

Source: World Bank, CIA World Factbook

1. Ethiopia

2015 GDP: +9.50%

2016 GDP: +10.50%

2017 GDP: +8.50%

2014-2017 GDP CAGR: +9.70%

Economy: Ethiopia’s economy is mostly agriculture-based, but the government has made a push to diversify into manufacturing, textiles, and energy generation. But while the country has seen and (per the World Bank) will continue to see high GDP growth, per capita income remains ones of the lowest in the world.

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