We recently compiled a list of the 15 Most Advanced Countries in Africa in 2024 and in this article, we will talk about the most advanced country in Africa in 2024.
Africa: An Overview
Africa has faced many challenges, including violent conflicts and harsh weather conditions, which have halted the growth of the region. According to a report by McKinsey, despite having a strong start at the beginning of the millennium, economic challenges are still a major problem in the region. From 2000 to 2010 the real GDP of the region was growing at an average rate of 5.1% annually. However, the growth slowed down to only 3.3% annually, from 2010 till 2019. During this time, the GDP of the region dropped 35%. It has also had a slow per capita income growth rate over the last three decades, averaging at only 1.1%.
Almost 60% of the population in Africa is living in poverty. However, the large population of the continent presents an unmatched opportunity for growth. Africa is estimated to have the biggest working-age population by 2040. Simultaneously, it presents an opportunity for business as 250 million people will be added to the consumer class by 2030. The high number of consumers is expected to add $3 trillion in consumer spending. Opportunities for companies include targeting growth centers and innovative value chains.
Agriculture is among the most dominant sectors in Africa. However, over the last couple of decades, a shift towards the services sector has been noted. During this period, the employment in the sector surged from 30% to 39%. The sector contributed 56% in 2019 compared to 50% in 2000 to the economic output of the continent. The services sector has been projected to create almost 85 million jobs in Africa by 2030. The newly created job could help cater to the need for employment in a growing population. Financial services, especially the fintech industry, have massive potential for growth in the region. You can also check out the 15 Friendliest Countries in Africa.
Fintech Industry: On The Rise
The fintech industry is thriving in Africa. According to a report by McKinsey, the fintech companies in Africa had revenues of around $4 billion to $6 billion in 2020. The revenues have been estimated to increase eight times, compared to their current value, by 2025. The average penetration levels of the industry across the continent have been estimated to be between 3 to 5%. Cash is used in 90% of the transactions being carried out in Africa. According to the data from the World Bank, only 49% of the adults in Africa have a bank account. There are many factors contributing to the lack of financial inclusion including high poverty rates and a lack of government documentation required to open an account. Digital financial services remove these hurdles providing fintech companies a huge market to explore. The financial services market is expected to grow 10% annually and reach $230 billion in revenues by 2025.
MTN Group Limited (JSE:MTN) is a telecommunication company based in South Africa. The company also has an operational presence in North America and the Middle East. It is currently working in 17 African countries including Côte d’Ivoire and Rwanda. The company provides a range of services including fintech, cloud services, and device management. MTN MoMo is a fintech platform by the company. The platform offers a myriad of services including mobile wallets and micro-loans. In the first fiscal quarter of 2024, the platform had 65.5 million users spread across 16 markets in Africa. MTN MoMo had 1.2 million active agents. During this period, 4.8 billion transactions were carried out by the platform having a transaction value of $72.3 billion. The platform has 2.2 million active merchants. The remittances during this quarter amounted to $883 million.
The presence of this leader in fintech reflects the potential of the industry in Africa. It is also working to improve the innovation landscape in the continent. On May 20, the executives of the company met with prominent African country leaders including Paul Kagame and William Ruto, the presidents of Rwanda and Kenya respectively. The meeting took place at the Africa CEO Forum in Kigali which focused on digital transformation. The discussion included important topics including regulatory harmonization and digital infrastructure investments. The company actively advocates for policies to boost digital infrastructure investment across Africa to foster innovation.
The company is also forming meaningful partnerships to further the fintech landscape in the continent. On February 29, the company announced a partnership with Mastercard. The collaboration entails the launch of a prepaid virtual card tailored for MTN’s MoMo customers. The card would grant users access to 100 million acceptance points worldwide. The partnership included 13 markets in the region including Cameroon, Cote d’Ivoire, and Eswatini. The companies are seeking an opportunity in the growing demand for international remittance services in Africa. There are $2 billion in daily processed transactions which is equivalent to 40% of the GDP of Sub-Saharan Africa. International remittances via mobile money wallets are growing rapidly. In 2020, international remittances via mobile money wallets reached $1 billion. The high amount showed a 65% increase compared to the previous year.
Africa has a massive potential for growth and advancement with growing industries including fintech. In this context, let’s have a look at the most advanced country in Africa. You can also read the 15 Most Advanced Countries in Asia in 2024.
The Most Advanced Country in Africa in 2024
Our Methodology
To make our list of the most advanced countries in Africa in 2024, we have used the Global Innovation Index (GII) 2023 and R&D Expenditure as a Percentage of GDP as our metrics, sourced from WIPE and the World Bank respectively. The Global Innovation Index ranked 132 countries based on various aspects including their adoption of technology, capacity for innovation, and the country’s innovative landscape. We initially sifted through the ranking and separated the top 28 countries in Africa. We then extracted the R&D expenditure as a percentage of GDP for each country. The year for the R&D expenditure varied among countries, as the latest data was not available. However, the metric still provides an apt understanding of the countries’ inclination towards research and development. The R&D expenditure has been considered the primary metric, and the GII ranking is the secondary metric. The list has been arranged in the ascending order of the primary metric.
Note: It is important to note that Zimbabwe has been ranked 15 places among the African countries and 117 in the world in the GII. However, no data is available for the R&D expenditure of the country which led to its exclusion from our list.
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The Most Advanced Country in Africa in 2024
1. Rwanda
Global Innovation Index 2023: 103
R&D Expenditure as a Percentage of GDP in 2019: 0.76%
Rwanda is considered one of the fastest-growing economies in Africa. In 2022, the GDP growth rate was 8.2%. It has the highest R&D expenditure as a percentage of GDP, based on the latest available data, among all African countries. It is the most advanced country in Africa in 2024. The startup culture is thriving in Rwanda. In 2023, Rwanda raised $38 million, in Partech which is a global investment firm, in startup funding. The funding exhibited a surge of six times the amount raised in 2022. Government initiatives in Kigali, the capital of Rwanda, including infrastructure development, ensuring access to high-speed internet, and reducing regulatory hurdles are creating a nurturing environment for startups. Fintech is one of the most notable sectors in Rwanda. According to a report by the National Bank of Rwanda, the country experienced an increase of 57% in mobile payments from December 2022 to December 2023. Similarly, internet banking surged by 68% during the same period. In March, Rwanda’s Ministry of Justice won two awards in the inaugural Commonwealth Access to Justice Innovation Awards ceremony. One of the awards was the integrated electronic case management system. The project was launched in 2016 and it aimed to help the judicial processes through automation. The digitization also facilitated information sharing between institutions.
Interested to see other advanced countries in Africa? Head over to our free detailed report on the 15 Most Advanced Countries in Africa in 2024.
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