Top 10 African Countries that Started 2025 with the Right Economic Policies

In Summary

• Africa's economic growth is projected to improve 2025 by 3.7% with further potential to reach 4.0% by 2026.
• The economic growth in Africa is driven mainly by regional integration through the African Continental Free Trade Area (AfCFTA).
• Events like the 2014 commodity price downturn and the COVID-19 pandemic significantly impacted investment in Africa, causing economic contractions. 
• The inflation rate in Sub-Saharan Africa is expected to decline from 7.1% in 2023 to 4.9% and further until 2023, based on the current economic policies being adopted by African countries.

Deep Dive!!

As we step into the second quarter of 2025, several African nations are experiencing tangible economic growth as a result of the policies they have adopted at the start of the year. These countries did not only pass legislative bills but also implemented strategic economic policies that are fostering significant growth and development.

According to recent data, Africa's economic growth is projected to improve in 2025, reaching 3.7% with further potential to reach 4.0% by 2026. Africa is experiencing a major economic wave across the continent that is driven by regional integration through the African Continental Free Trade Area (AfCFTA)—which provides a solution to the long-lasting problems associated with regional integration in the country.

However, this growth is still hindered by factors like slow investment, conflicts, and climate change, with many African nations heavily reliant on volatile commodity prices for export earnings, making them vulnerable to global market fluctuations. As a result, the economic policies implemented by government goes a long in either providing solutions to these challenges or making them worse.

In this article, referencing the Economic Outlook of 2025, we have highlighted the top 10 African countries that have commenced the year with commendable economic strategies through legislative policies. These countries exemplify how targeted economic policies can lead to substantial growth and development, setting a positive trajectory for Africa in 2025.

Here are the 10 African Countries that Started 2025 with the Right Economic Policies. Check them out!

10. Egypt—Egypt has a mixed economy with sectors like tourism, agriculture, and manufacturing playing significant roles. At the turn of the new year, the North African country has focused on structural reforms, and infrastructure investments have been central to recent economic strategies. These measures have led to economic recovery and growth, contributing to Africa's modest economic expansion projected for 2025.

9. Nigeria—As Africa's most populous country, Nigeria has a diverse economy with substantial oil and gas reserves. In 2025, the government has implemented reforms to diversify the economy and reduce dependence on oil. These policies have contributed to economic recovery and growth, as highlighted in the World Economic Situation and Prospects 2025 report.

8. Ethiopia—Ethiopia has been one of Africa's fastest-growing economies, with significant investments in infrastructure and manufacturing which has continued in 2025. The government continues to attract international investments, with a projected GDP growth of 6.5% in 2025. These efforts have led to consistent economic expansion and development.

7. Rwanda—Rwanda has transformed significantly since the 1990s, becoming a model for economic development in Africa. The government has focused on technology, innovation, and creating a conducive business environment in 2025. These policies have resulted in sustained economic growth, positioning Rwanda as a competitive investment destination.

6. Benin—A West African nation with a growing economy, Benin has been implementing reforms to boost development. Efforts to improve the business environment and invest in infrastructure have been prioritized by the government in 2025. These initiatives have contributed to Benin's strong economic performance, attracting foreign direct investment.

5. Senegal—Senegal has maintained political stability and is known for its diversified economy. The government has rolled out the Plan for an Emerging Senegal (PES), focusing on structural reforms and infrastructure projects in 2025. The implementation of PES has led to robust economic growth, enhancing the country's appeal to investors.

4. Tanzania—With a diverse economy, Tanzania has been a consistent performer in East Africa. Emphasis on industrialization and infrastructure development has been central to recent policies in the country. Such strategies have sustained high growth rates, making Tanzania a notable investment destination.

3. Côte d’Ivoire—Known for its cocoa production, Côte d’Ivoire has been one of West Africa's most stable economies. The government has focused on infrastructure development and improving the business climate in the country in 2025. These measures have positioned Côte d’Ivoire among Africa's fastest-growing economies, attracting significant foreign investment.

2. Libya—Despite political instability post-2011, Libya possesses substantial oil reserves. Initiatives aimed at stabilizing the economy and improving governance have been introduced by the government in 2025. The country is expected to experience a GDP growth of 13.7% in 2025, reflecting positive outcomes from these policies.

1. South Sudan—gained independence in 2011, South Sudan has faced prolonged civil conflicts but is rich in oil reserves. In other to come out of the prevailing economic stagnancy, the government has prioritized stabilizing the economy and enhancing governance structures. These efforts are projected to result in a remarkable GDP growth of 27.2% in 2025, indicating a significant economic turnaround.