Africa is poised for substantial economic growth in the coming years, driven by a rapidly expanding youth population and abundant natural resources, particularly in materials crucial for the transition to renewable energy.

However, a complex combination of political instability, environmental challenges exacerbated by climate change, and systemic issues—particularly within the continent's major economies—has impeded economic progress and increased the number of impoverished and vulnerable individuals.

Recently, the repercussions of the COVID-19 pandemic in 2020, along with the ongoing Russia-Ukraine conflict and the escalation of the Israel-Hamas situation into the broader Middle East, have further deteriorated the economic landscape. This has resulted in soaring inflation rates, pushing many economies to the edge of fiscal crisis.

As per the most recent report from the International Monetary Fund (IMF), the Sub-Saharan Africa (SSA) region is projected to experience a growth rate of 3.6% in 2024, aligning with the growth observed in 2023.

Looking ahead to 2025, the IMF anticipates a growth rate of 4.2% for the SSA region. However, the continent's major economies, including Nigeria, South Africa, and Egypt, continue to grapple with sluggish growth.

The IMF identifies the ten fastest-growing economies in the region, starting with:

10. Ethiopia, where the IMF anticipates an economic growth of 6.5% in 2025, up from 6.1% in 2024.

  • Ethiopia has experienced a decline in economic growth in recent years, falling short of its GDP growth peak of 7.1% in 2023. However, the country's growth is hampered by significant currency depreciation and high inflation rates. In 2022, inflation soared to 33%, but it is projected to decrease to 23.9% in 2024 and 23.3% in 2025.

9. Rwanda is anticipated to maintain a GDP growth rate of 6.5%, similar to Ethiopia; however, its economic growth has experienced a decline in recent years.
  • In 2025, Rwanda's economy is projected to grow by 6.5%, a decrease from 7.0% in 2024 and further down from 8.2% in 2023. Inflation in Rwanda remains among the lowest in Africa, recorded at 4.9% in 2024, with expectations to rise to 5.1% in 2025, a significant drop from 14% in 2023.
8. Benin Republic is expected to see its growth rate remain at 6.5% in 2025, consistent with 2024 figures and a slight increase from the 6.4% growth recorded in 2023. 
  • The inflation rate in Benin for 2025 is projected to be 2.0%, unchanged from 2024.
7. Zambia's economy is projected by the IMF to grow by 6.6% in 2025, marking a substantial recovery of 4.3 percentage points from the 2.3% growth forecasted for 2024. 
  • Inflation in Zambia is expected to decrease to 12.1% in 2025, down from 14.6% in 2024.
6. Despite a coup in 2023, Niger is expected to experience robust growth, projected at 7.3% in 2025, although this is a decline from its peak growth of 11.9% in 2022. 
  • The country has faced fluctuating economic growth, with a drop to 2.4% in 2023 before rebounding to 9.9% in 2024.
5. Uganda's economy is forecasted to expand by 7.5% in 2025, reflecting a steady increase since 2021 when GDP growth was 5.5%. 
  • The economy grew by 6.3% in 2022 but fell to 4.6% in 2023. Projections for 2024 indicate a growth rate of 5.9%, driven by rising gold prices and investments in the oil and gas sector.
4. Sudan's war-torn economy is expected to recover from a contraction of 20.3% in 2024 to a growth of 8.3% in 2025. 
  • This growth will be primarily supported by increased spending on reconstruction, particularly in social services and infrastructure, alongside a
3. Senegal is anticipated to be the third fastest-growing economy in Africa by 2025, as reported by the IMF, with a projected GDP growth of 9.3%, up from 6.0% in 2024. 
  • Inflation is expected to rise to 2%, an increase of 0.5 percentage points from 1.5% in the previous year. This economic expansion is largely attributed to the advancement of the nation’s hydrocarbon resources and a supportive economic climate characterized by declining inflation rates.
2. Libya, recognized as Africa's second-largest oil producer, is forecasted to emerge as the continent's second fastest-growing economy, with an anticipated GDP growth of 13.7% according to the IMF.
  • This marks a significant rise from the 2.4% growth projected for 2024. The growth in Libya is primarily supported by stability within the oil and gas sector; however, potential risks to this forecast include a precarious political and security landscape, as well as a slowdown in global economic growth that could lead to lower international oil prices, thereby limiting Libya's fiscal flexibility.
1. South Sudan, a nation that has faced extensive conflict, is projected to be the fastest-growing economy in Africa according to the IMF, with an expected growth rate of 27.2% in 2025, rebounding from a contraction of -26.4% in 2024. 
  • The IMF estimates that inflation in South Sudan will decrease from 120% in 2024 to 74% in 2025. The country has been embroiled in political turmoil since 2013, just two years after it gained independence in 2011.