The International Monetary Fund (IMF) projects significant shifts in Africa’s economic landscape, with South Africa poised to overtake Egypt as the continent’s largest economy by 2027. Currently, South Africa holds the title of Africa’s most industrialized nation, and the IMF forecasts its GDP to reach $373 billion, securing its top position until 2027.
Egypt, which claimed the top spot in 2023, is expected to fall to second place behind South Africa. This shift is primarily attributed to a series of currency devaluations, which have impacted Egypt’s economic standing.
Nigeria, once hailed as Africa’s largest economy, is set to slip to fourth place this year, also due to currency devaluations and high inflation. The downturn in economic fortunes for both Nigeria and Egypt has been exacerbated by sharp devaluations of their currencies.
Despite recent efforts at recovery, Nigeria’s currency, the naira, remains significantly weaker against the dollar, having lost 50% of its value since President Bola Tinubu took office last May.
Egypt, known as one of the emerging world’s most indebted countries, has devalued its currency by over 35%, aiming to facilitate additional loans from the International Monetary Fund. It currently stands as the IMF’s second-largest borrower after Argentina.
According to the IMF’s World Economic Outlook, Nigeria’s gross domestic product (GDP) is estimated at $253 billion based on current prices this year, trailing Algeria’s at $267 billion, Egypt’s at $348 billion, and South Africa’s at $373 billion.
GDP Rankings (Estimated for 2024):
| Country | GDP (in billion USD) |
|---|---|
| South Africa | $373 |
| Egypt | $348 |
| Algeria | $267 |
| Nigeria | $253 |
These projections indicate a significant amount shift in Africa’s economic landscape, with South Africa set to lead the continent in GDP, followed closely by Egypt and Algeria, while Nigeria falls to fourth place.
