In this article, we will discuss the 15 African Countries with the Potential to Develop Soon and Become a First World Nation. You can skip our detailed analysis of the African economy and see the 5 African Countries with the Potential to Develop Soon and Become a First World Nation.
Economic Outlook of Africa
Africa is an extremely diverse continent, rich in natural resources. Sub-Saharan Africa encompasses low, lower-middle, upper-middle, and high-income countries, of which 22 are affected by conflicts, and 13 are small states with limited human capital and land area. However, the region houses the largest free trade area in the world, and its market of 1.2 billion people holds the potential to pave an innovative development path by employing its resources and people.
According to the International Monetary Fund (IMF), the sub-Saharan economy is on the path to recovery after four turbulent years. The region is anticipated to undergo a growth of 3.2% in 2024, up from 3.4% in 2023. The growth rate for around two-thirds of African countries is expected to be even higher. These trends of economic recovery are expected to continue till 2025, with the growth rate reaching 4.0%. In addition, the median inflation rates in the region have also dropped to nearly half, going from 10% to 6% between November 2022 and February 2024.
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Africa’s Potential for Growth
Although around 60% of the African population is living in poverty, the region has immense potential for growth. The continent’s human resources are expected to be the primary drivers of this growth: Africa is estimated to house the biggest working-age population by 2040, and add more than 740 million people to its working class by 2050. Because of the continent’s high population growth rate, approximately 12 million young people are anticipated to add to Africa’s labor force per year in the coming decade. If the continent is able to provide new jobs at the same pace as its labor force growth, it can significantly change its economic condition.
The African continent also houses a positive opportunity for business, as around 250 million people are expected to be added to its consumer class by 2030. This significant increase is estimated to add approximately $3 trillion in consumer spending, paving way for opportunities for companies.
In addition, the tourism industry in Africa also presents a substantial opportunity to boost economic growth in the continent and expedite job creation. Data from the World Travel and Tourism Council shows that Africa’s tourism sector is estimated to grow by 6.5% every year for the entire coming decade. This growth is expected to add around 18 million jobs to the tourism sector, and contribute approximately $168 billion to regional economy. Adequate regional policy interventions can take this number as high as $350 billion.
Challenges Amid Growth Projections
Despite the positive growth outlook for the regional economy, Africa has numerous challenges to tackle. Some of these include monetary shortages, rollover risks caused by low domestic resource mobilization, turbulent political landscape, and the high cost of borrowing. The IMF suggests the implementation of policy directives by African governments to combat these challenges, some of which include diversifying financing sources, enhancing public finance, and battling price instability.
Some African countries are already implementing such directives, with Namibia being a suitable example. The country elevated its economic growth forecast for 2023 and 2024 due to improvements in its oil and mining sector. Namibia’s economy is now calculated to have grown by 5.6% in 2023, in contrast to growth projections of 3.5%. Projections for economic growth in 2024 have also improved, going from former estimates of 2.9% to newer calculations of 3.5%.
Key Players Investing in Africa’s Future
Shoprite Holdings Limited (JSE:SHP) is one of the largest retail companies in Africa that specializes in the sale of consumer goods and deals in hospitality, food retailing, pharmaceuticals, furniture, digital commerce, and furniture products. The company is one of several establishments in the region that have taken the lead in investing in Africa’s growth. It announced a collaboration with four other leading global retailers to form a collaborative venture fund named W23 Global. This fund comprises giants like Tesco, Empire Company Limited, Ahold Delhaize, and Woolworths Group in addition to Shoprite Holdings Limited, and is estimated to invest around $125 millon in innovative start-ups in the region over the next five years.
The pioneering venture will focus on scale-ups that employ technology to augment customer experiences and address the sustainability challenges in the sector. The fund is expected to advance the global grocery retail sector and accelerate innovation across the industry, with each retailer acting as an equal partner of W23 Global. Such ventures, if continued, are expected to revamp Africa’s economy and push it to the forefront on the list of first-world nations.
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Now that we have taken an overview of the African economy, let’s look at the 15 African countries with the potential to develop soon and become a first world nation. You can also look at 20 Most Underrated Cities in Africa to Visit in 2024 and 15 Most Respected Countries In Africa In 2024 for more insights.
15 African Countries with the Potential to Develop Soon and Become a First World Nation
Our Methodology
To compile a list of the 15 African countries with the potential to develop soon and become a first world nation, we employed the Human Development Index (HDI) developed by the United Nations Development Program (UNDP). The index assesses the development of a country through three dimensions: health, education, and standard living. The health dimension focuses on life expectancy, while the education dimension covers the expected years of schooling for children of school entering age and the mean of years of schooling for adults aged 25 years and more. Finally, the standard living dimension measures the gross national income per capita. These three dimensions make up the HDI Value, which is our primary metric for this list. We have also considered the 2023 GDP per capita growth as a secondary metric to solidify our methodology. We took the average of these two metrics and arranged our list according to it, which we have named the Insider Monkey Score. In addition, we included GDP per capita for 2024 as a tertiary metric to further add to our research, and sourced the values from IMF. The 15 African countries with potential to develop soon and become a first world nation is arranged in ascending order of their Insider Monkey Score.
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15 African Countries with the Potential to Develop Soon and Become a First World Nation
15. Equatorial Guinea
HDI Value: 0.650
Annual GDP per Capita Growth as of 2023: -7.90%
Insider Monkey Score: 0.2855
GDP per Capita (2024): $18,380
Equatorial Guinea takes the 15th spot on our list of the 15 African countries with the potential to develop soon and become a first world nation. The country has an HDI Value of 0.650 and an Insider Monkey Score of 0.2855.
14. Sao Tome and Principe
HDI Value: 0.613
Annual GDP per Capita Growth as of 2023: -2.40%
Insider Monkey Score: 0.2945
GDP per Capita (2024): $4,240
Located in Central Africa, Sao Tome and Principe ranks 14th on our list. This island nation is located close to the equator, and is a part of a volcanic chain with awe-inspiring coral and rock formations. With a landscape lined with beaches and rainforests, the country is full of breathtaking views.
13. The Republic of the Congo
HDI Value: 0.593
Annual GDP per Capita Growth as of 2023: -0.40%
Insider Monkey Score: 0.2945
GDP per Capita (2024): $4,740
Also known as Congo-Brazzaville, the Republic of the Congo is a central African nation fitted with rainforests reserves housing diverse wildlife. The country has an HDI Value of 0.593, ranking it 13th on our list.
12. Ghana
HDI Value: 0.602
Annual GDP per Capita Growth as of 2023: 1.00%
Insider Monkey Score: 0.306
GDP per Capita (2024): $7,160
Officially known as the Republic of Ghana, Ghana is the second most populous country in West Africa. It borders the Atlantic Ocean to the south, and lies adjacent to the Gulf of Guinea. The country had a 1.00% annual GDP per capita growth in 2023.
11. Kenya
HDI Value: 0.601
Annual GDP per Capita Growth as of 2023: 3.40%
Insider Monkey Score: 0.3175
GDP per Capita (2024): $6,980
The 11th spot on our list is held by Kenya, an East African country that shares a coastline with the Indian Ocean. With a 3.40% annual GDP per capita growth as of 2023, the country has a GDP per capita of $6,980 as of 2024.
10. Namibia
HDI Value: 0.610
Annual GDP per Capita Growth as of 2023: 2.70%
Insider Monkey Score: 1.655
GDP per Capita (2024): $12,010
With an Insider Monkey score of 1.655, Namibia ranks 10th on our list. The country is located in southwest Africa, and its western border is the Atlantic Ocean. It boasts diverse wildlife, including a substantial number of cheetahs.
9. Eswatini
HDI Value: 0.610
Annual GDP per Capita Growth as of 2023: 4.00%
Insider Monkey Score: 0.325
GDP per Capita (2024): $12,640
Located in Southern Africa, Eswatini is a landlocked country that shares a northeastern border with Mozambique and northern, western, southern, and southeastern border with South Africa. The country has a GDP per capita of $12,640 as of 2024.
8. Gabon
HDI Value: 0.693
Annual GDP per Capita Growth as of 2023: 0.30%
Insider Monkey Score: 0.3480
GDP per Capita (2024): $19,450
With an Insider Monkey Score of 0.3480, Gabon ranks eighth on our list of the African countries with the potential to develop soon and become a first world nation. As of 2023, the country’s annual per capita GDP growth was 0.30%.
7. Morocco
HDI Value: 0.698
Annual GDP per Capita Growth as of 2023: 0.20%
Insider Monkey Score: 0.350
GDP per Capita (2024): $10,950
Morocco is a North African country that shares a border with the Meditterranean Sea and the Atlantic Ocean. The country’s culture is infused with Arabian, Berber, and European influences. It ranks seventh on our list with an HDI Value of 0.698.
6. Cabo Verde
HDI Value: 0.661
Annual GDP per Capita Growth as of 2023: 4.20%
Insider Monkey Score: 0.3515
GDP per Capita (2024): $10,300
Cabo Verde’s GDP per capita is $10,300 as of 2024 and increased by 4.20% in 2023. The country ranks sixth on our list with an Insider Monkey Score of 0.3515 and a HDI Value of 0.661.
5. South Africa
HDI Value: 0.717
Annual GDP per Capita Growth as of 2023: -0.30%
Insider Monkey Score: 0.3570
GDP per Capita (2024): $16,420
As its name implies, South Africa is located on the southern-most tip of the African continent. The country has a population of 59.89 million people as of 2022, according to estimates by the World Bank. It has an Human Development Index Value of 0.717, ranking it fifth on our list.
4. Botswana
HDI Value: 0.708
Annual GDP per Capita Growth as of 2023: 1.00%
Insider Monkey Score: 0.3590
GDP per Capita (2024): $20,100
Botswana takes the fourth spot on our list of the 15 African countries with the potential to develop soon and become a first world nation. The landlocked country lies in Southern Africa, and has a GDP per capita of $20,100 as of 2024. It has an Insider Monkey Score of 0.3590.
3. Algeria
HDI Value: 0.745
Annual GDP per Capita Growth as of 2023: 2.50%
Insider Monkey Score: 0.3850
GDP per Capita (2024): $16,480
Algeria underwent a 2.50% increase in its annual GDP per capita in 2023, bringing its GDP per capita to $16,480 in 2024. Officially known as the People’s Democratic Republic of Algeria, Algeria is located in North Africa’s Maghreb region. It ranks third on our list with an Insider Monkey Score of 0.3850.
2. Seychelles
HDI Value: 0.802
Annual GDP per Capita Growth as of 2023: 3.30%
Insider Monkey Score: 0.4175
GDP per Capita (2024): $43,150
Seychelles is made up of 115 islands scattered in the Indian Ocean, off the East African coast. It is the smallest country in Africa as well as the least populated sovereign country in the continent, with a population of 100,600 as of 2022, according to World Bank estimates. The country houses numerous natural reserves, scenic beaches, and coral reefs, along with rare wildlife such as the giant Aldabra tortoises.
1. Mauritius
HDI Value: 0.796
Annual GDP per Capita Growth as of 2023: 7.10%
Insider Monkey Score: 0.4335
GDP per Capita (2024): $32,090
Mauritius ranks first on our list of the 15 African countries with the potential to develop soon and become a first world nation. This East African island nation lies in the Indian Ocean around 2,000 kilometers off the southeastern coast of the region, located east of Madagascar. Famous for its scenic lagoons, clear beaches, and reefs, the country has a mountainous landscape with waterfalls, rainforests, and hiking trails. Mauritius also houses rare wildlife, including the flying fox. It has a population of 1.263 million people as of 2022, according to estimates by the World Bank. The country is one of the most stable economies in Africa, and holds a 4.9% projected real GDP change in 2024, according to IMF. Its GDP has been on an upward trajectory since 2020 and is expected to continue increasing well until 2030. It currently stands at $16.36 billion as of 2024.
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Disclosure: None. This article was originally published at Insider Monkey.