In this article, we will talk about the 15 most respected countries in Africa. You can skip our detailed analysis and head straight to the 5 Most Respected Countries In Africa.
Africa’s Potential for Growth
In this decade, Africa has yet to make any notable economic strides. According to a report by McKinsey, from 2010 to 2019, the overall GDP in Africa fell 35% with almost 60% of its population living in poverty today. The pandemic and the Russian invasion of Ukraine have impacted the entire world. The already struggling African countries were not immune to this distress. The macroeconomic factors have also contributed to the stunted growth.
The economic situation in Africa presents a dark image at first glance. However, the continent is full of potential and presents multifarious opportunities for growth. Africa has a large human capital and rich natural resources. According to the World Bank, Africa is the world’s largest free trade area and has a total market of 1.2 billion people. The World Bank has estimated that economic growth in the continent will increase to 3.9% by 2050.
The African population has been estimated to increase to 2.5 billion by 2050, adding 796 million people to the global workforce. With a massive young population and an average age of 18, Africa has tremendous growth potential. By properly employing its natural and human resources, it could completely transform its future economic outlook. The large population offers excellent opportunities for businesses. The enormous population means the availability of considerable human resources and a huge market. According to McKinsey, Africa will see a $3 trillion increase in consumer spending by 2030. Similarly, the continent is rich in natural resources.
The Mining Sector in Africa: A Major Driver
The African economy relies heavily on the mining sector. According to a report by Verified Market Research, the African mining market was valued at $476.86 billion in 2022 and is projected to grow to $799.66 billion by 2030, recording a compound annual growth rate of 6.60%.
South Africa and Ghana are among the top gold producers in Africa. Notable mining companies working in Africa include AngloGold Ashanti Limited (NYSE:AU) and DRDGOLD Limited (NYSE:DROOY).
Economies in Africa including Tanzania and Zambia depend on the mining sector and export large quantities of gold and other precious metals annually. By properly developing the mining sector, the continent could propel its future economic growth.
Connectivity Nurtures Respect
The global economy is interconnected, and the presence of a country in the international world of business holds immense importance. Recent research studying the impact of a country’s reputation on the economic development of the nation found that the enterprises impact the reputation of the country of origin internationally. Similarly, the presence of international enterprises in a country also contributes positively to its perception by others. The presence of a country in the global trade arena helps build respect and attracts further investments. Proper communication and interconnectedness enable innovation and ideas to flow efficiently to and from the country.
According to the report by McKinsey, almost 345 companies in Africa have an annual revenue of more than $1 billion, and their combined total revenue amounts to more than $1 trillion. Africa offers great growth opportunities, especially for larger companies. In Africa, according to McKinsey’s estimates, large companies could increase their collective revenue by more than $550 million by 2030 by properly tapping into the region’s growth potential. The telecommunication industry has been one of the driving factors in improving connectivity and business in the continent. Advancing the telecommunication sector would reduce the infrastructure gaps that exist in the continent. Thus, telecommunication is one of the most significant industries in Africa.
Telecommunication enables the flow of information between distant regions. It facilitates interconnectedness and provides a foundation for countries to nurture a better reputation and respect. According to a report by Grandview Research, the global telecommunication market was valued at $1.8 trillion in 2022 and is forecasted to reach $2.87 trillion in revenue by 2030. The global telecommunication industry is growing rapidly, especially with the recent rise in the use of 5G.
According to a report by Mordor Intelligence, the African telecom tower, and the allied market is projected to grow from 199 thousand units in 2023 to 249.65 thousand units by 2028. With the expansion of telecommunication, connectivity increases. Heightened connectivity introduces new growth opportunities and promotes development. Some of the most noteworthy telecommunication companies working in Africa include Airtel Africa Plc (LON:AAF), MTN Group Ltd (OTC:MTNOY), and IHS Holding Limited (NYSE:IHS).
Airtel Africa Plc (LON:AAF) is a UK-based telecommunications company that provides telecommunication services and mobile payment services in Africa. IHS Holding Limited (NYSE:IHS) is another UK-based telecommunications infrastructure provider working in Africa. It is the fourth biggest independent tower company in the world and also one of the best African stocks to buy.
MTN Group Ltd (OTCMKTS:MTNOY) is the biggest wireless carrier in Africa. The company is also working to boost business opportunities in the continent. On August 14, Bloomberg reported that Mastercard Incorporated (NYSE:MA) has agreed to take a minority stake in the fintech business of MTN Group Ltd (OTCMKTS:MTNOY); however, the size of the stake has not been disclosed yet. The large young population offers a great opportunity for bigger companies like Mastercard Incorporated (NYSE:MA) to explore. Africa has a massive underbanked population consequently a great opportunity for fintechs. Mastercard Incorporated (NYSE:MA) is working with many fintech startups to maximize benefits from the African market.
By over-generalizing the African region, the actual opportunities get overlooked. Despite the overall slow economic development, many countries in the region have been persistently growing, including Ghana, the Democratic Republic of Congo, and Tanzania. We have made a list of the most respected countries in Africa.
Sarine Arslanian/Shutterstock.com
Our Methodology
To make our list of the most respectful countries, we initially made a list of all African countries and separated the top 30 biggest economies based on total GDP in 2022. We extracted the data for total GDP from the World Bank. A stronger economy corresponds to better services, infrastructure, and political environment. We then sifted through our list and separated the countries with higher exports.
We have considered higher exports as an indicator for “respected countries”. The filtering was done based on the hypothesis that more respected countries have better trade relations with other countries and, consequently, higher exports. The export data has also been extracted from the World Bank for either 2022 or 2021, depending on the latest available year. We have ranked countries in ascending order.
15 Most Respected Countries In Africa
15. The Republic of Cameroon
Total GDP in 2022: $44.341 Billion
Exports of Goods and Services in 2022: $8.607 Billion
The Republic of Cameroon is located in central Africa. Cameroon is a middle-income country with diverse wildlife. The country primarily exports cocoa beans, crude petroleum, and petroleum gas. The economy of Cameroon is expected to flourish in the coming years.
14. The Federal Democratic Republic of Ethiopia
Total GDP in 2022: $126.783 Billion
Exports of Goods and Services in 2022: $10.453 Billion
Ethiopia is one of the most populous countries in Africa. It is one of the fastest-growing economies in Africa. The country has a long history of resilience and has persisted through turbulent situations. Based on its economy, Ethiopia has been ranked 59th in the world by the IMF. On July 8, the start of Ethiopia’s new fiscal year, Reuters reported that the country expects higher spending and growth in the coming year.
13. The Republic of Zambia
Total GDP in 2022: $29.784 Billion
Exports of Goods and Services in 2022: $11.446 Billion
Zambia is located in Southern Africa. The economy of the country is heavily reliant on the mining industry. It primarily exports copper, gold, and precious stones. The country’s economy is projected to grow further with continued investment in the mining sector.
AngloGold Ashanti Limited (NYSE:AU) and DRDGOLD Limited (NYSE:DROOY) are among the top mining companies in Africa. Other top African companies that are driving the region’s economy include Airtel Africa Plc (LON:AAF), MTN Group Ltd (OTC:MTNOY), and IHS Holding Limited (NYSE:IHS).
12. The United Republic of Tanzania
Total GDP in 2022: $75.709 Billion
Exports of Goods and Services in 2022: $11.675 Billion
Tanzania has many exports compared to other countries in the region. The country relies heavily on gold mining. The country has considerable growth potential. It is one of the most respected countries in Africa.
11. The Republic of Kenya
Total GDP in 2022: $113.420 Billion
Exports of Goods and Services in 2022: $13.854 Billion
Kenya is a fast-growing economy and one of the most respected countries in Africa. Kenya is located in east Africa with a coastline on the Indian Ocean. According to the World Bank, in 2022, real GDP increased by 6% year over year.
10. The Republic of Côte d’Ivoire
Total GDP in 2022: $70.018 Billion
Exports of Goods and Services in 2022: $17.395 Billion
Côte d’Ivoire is located in West Africa. The country mainly exports gold, petroleum, and cocoa beans. It is one of the most advanced countries in Africa. The country also has a higher income level than other countries in the region.
9. The Republic of Ghana
Total GDP in 2022: $72.838 Billion
Exports of Goods and Services in 2022: $20.049 Billion
Ghana is located in Western Africa. The country exports many products, including crude oil and cocoa beans. The manufacturing sector in the country is also developing rapidly. Ghana manufactures many electronics and electric cars. It is one of the most respected countries in Africa.
8. The Tunisian Republic
Total GDP in 2022: $46.664 Billion
Exports of Goods and Services in 2022: $22.487 Billion
Tunisia is located in Northern Africa. The country has a flourishing export sector. Textile and clothing are Tunisia’s most prominent exports. The phosphate and mining sector significantly add to the overall GDP of the country.
7. Democratic Republic of Congo
Total GDP in 2022: $58.065 Billion
Exports of Goods and Services in 2022: $27.884 Billion
Democratic Republic of Congo is one of the most respected countries in the region. The country has a fast-growing economy. The mining and services sectors of the country contribute significantly to the overall economy.
For investors looking to increase their exposure to the African market, some stocks to consider include AngloGold Ashanti Limited (NYSE:AU), DRDGOLD Limited (NYSE:DROOY), Airtel Africa Plc (LON:AAF), MTN Group Ltd (OTC:MTNOY), and IHS Holding Limited (NYSE:IHS).
6. The Republic of Angola
Total GDP in 2022: $106.713 Billion
Exports of Goods and Services in 2021: $29.843 Billion
Angola is located in central Africa. Angola is one of the largest oil producers in Africa. Crude oil and petroleum gas are the top exports of the country. The country has a promising export market. The exports directly correspond to its relationship with other countries and reflect its reputation.
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Disclosure: None. 15 Most Respected Countries In Africa is originally published on Insider Monkey.