Five African Powerhouses Contribute Half of Continent’s GDP, New Report Finds

Addis Ababa: In a comprehensive analysis, a recent study highlighted that five African nations-South Africa, Nigeria, Egypt, Algeria, and Ethiopia-collectively generate half of Africa’s total Gross Domestic Product (GDP), emphasizing the unequal economic distribution across the continent.

According to Ethiopian News Agency, the report, conducted by Voronoi and based on 2024 data from the International Monetary Fund (IMF), reveals that these five economies together amass an impressive 1.4 trillion USD, which constitutes 50% of Africa’s overall GDP of 2.8 trillion USD. The detailed figures per country are South Africa with 373.23 billion USD, Egypt at 347.59 billion USD, Algeria contributing 266.78 billion USD, Nigeria at 252.74 billion USD, and Ethiopia with 205.13 billion USD.

This significant concentration of economic activity in just five countries underscores the challenges that the other 48 African nations face in terms of economic growth and stability. The report not only illustrates the economic prowe
ss of the “Big Five” but also highlights the stark disparities that exist within the continent.

The absence of economic data for Eritrea and Western Sahara in the report complicates the complete understanding of Africa’s economic landscape. However, the findings of this study are critical for policymakers and economists who are keen on developing strategies to foster equitable economic growth and bridge the vast economic divide across Africa.

The insights from the Voronoi report could potentially spark a broader discussion on the need for targeted investments and initiatives that would help in leveling the economic playing field across the continent.