A recent report by McKinsey titled ‘Reimagining economic growth in Africa: Turning Diversity into Opportunity’ has revealed that Nigeria, Egypt, and South Africa have contributed to a 65% slowdown in Africa’s Gross Domestic Product (GDP) growth. The report highlights that if these three countries had maintained their growth rate between 2000 and 2010, Africa’s GDP by 2019 should have reached $3 trillion instead of $2.6 trillion.
The report emphasizes that the ‘big three’ economies of Africa, namely Egypt, Nigeria, and South Africa, account for a significant portion of this GDP difference. These countries have experienced recent slowdowns or slower growth rates compared to their performance in the earlier decade.
Despite being home to the world’s youngest and fastest-growing population, Africa’s economic performance has fallen behind. The report reveals that since 1990, the continent’s GDP per capita has only grown by one percent annually, whereas India has achieved five percent and China has achieved eight percent growth during the same period.
The report also highlights that while there was an acceleration in continental GDP growth between 2000 and 2010, the growth rate decelerated during the period of 2010-2019.
These findings shed light on the challenges faced by Africa’s largest economies in sustaining robust and inclusive economic growth. Addressing these challenges and promoting sustained growth across the continent will be crucial for unlocking Africa’s full economic potential and harnessing the benefits of its young and dynamic population.
