In Summary

• Smaller nations, such as Djibouti and Cabo Verde, demonstrate how ports, tourism, and strategic positioning can drive outsized growth despite limited resources.
• Resource-driven economies such as the DRC and Niger are balancing extractive wealth with reforms aimed at diversification and long-term stability.
• Policy-led growth in Rwanda, Benin, and Senegal reflects how governance and regional integration are becoming as crucial as raw resources.

Deep Dive!!

Lagos, Nigeria, Monday, September 29 - Africa has emerged as one of the most dynamic regions in the global economy, with several countries recording some of the fastest growth rates worldwide. In early 2025, updated GDP data revealed that multiple African economies sustained annual expansions above 6 percent, far exceeding the global average of just over 3 percent. This outcome underscores the continent’s growing role in shaping global growth patterns despite persistent international headwinds, including inflationary pressures, rising borrowing costs, and supply chain disruptions.

The sources of this growth are wide-ranging and structural in nature. Large-scale infrastructure development continues to transform transport, energy, and housing sectors, while the African Continental Free Trade Area (AfCFTA) is gradually deepening regional integration and reducing trade barriers. At the same time, renewable energy investments are reducing reliance on imports, while digital technologies such as mobile banking and e-commerce are stimulating both formal and informal economic activity. Agriculture, long a cornerstone of African economies, is also advancing through mechanization and climate-adaptive techniques that improve food security and boost export potential.

What distinguishes Africa’s performance is the diversity of growth models driving expansion across the continent. Landlocked and coastal states, resource exporters and service-based economies alike, are represented among the fastest-growing performers. This breadth of progress highlights the resilience and adaptability of African economies, while also pointing to the continent’s capacity to sustain momentum even under challenging global conditions. The ranking presented here is based on World Bank data measuring annual GDP growth rates, expressed as the percentage change in constant prices. The following sections outline the top ten African countries with the fastest GDP growth in early 2025.

10. Djibouti

Djibouti’s economy recorded an estimated 6.0 percent GDP growth in 2024, underscoring its position as one of Africa’s most strategically important small states. Despite a land area of just over 23,000 square kilometers and a population under one million, Djibouti functions as the commercial lifeline of the Horn of Africa. Its ports handle more than 90 percent of Ethiopia’s external trade, providing not only customs revenue and transit fees but also serving as the foundation of Djibouti’s broader economic model. Recent expansions, including the Doraleh Multipurpose Port and the Djibouti International Free Trade Zone, have reinforced its role as a central hub for shipping and warehousing in the Red Sea corridor. These facilities are designed to capture rising global trade volumes and to integrate Djibouti further into both African and Middle Eastern commercial networks.

Beyond logistics, Djibouti’s growth trajectory is supported by an ambitious energy transition strategy. The government has advanced large-scale geothermal, wind, and solar projects aimed at achieving 100 percent reliance on renewable energy by 2030. The geothermal fields around Lake Assal, estimated to contain one of the largest untapped geothermal reserves in Africa, are central to this goal. International partnerships with institutions such as the African Development Bank and private sector investors have funneled millions into renewable energy infrastructure. The shift to clean energy is projected to reduce Djibouti’s dependence on imported fuel, lower production costs, and create a more competitive environment for manufacturing and service-oriented industries linked to logistics.

Foreign direct investment continues to play a significant role in shaping Djibouti’s economic outlook. Strategic ties with China, Gulf states, and multilateral organizations have translated into infrastructure loans, port developments, and technology transfers that strengthen the country’s position as a transit economy. At the same time, policy reforms aimed at improving fiscal management and expanding financial services are gradually making Djibouti more attractive for long-term investment. Though external debt levels remain high, the government has pursued debt restructuring and is focusing on revenue mobilization through transit services and free trade incentives. These measures, combined with its geographic advantage at the intersection of the Red Sea and the Gulf of Aden, have allowed Djibouti to sustain growth momentum and highlight how even resource-scarce nations can secure resilience through specialization and strategic planning.

9. Uganda

Uganda registered an estimated 6.1 percent GDP growth in 2024, driven by strong agricultural output and renewed confidence in the services sector. Agriculture accounts for more than 70 percent of employment and continues to anchor Uganda’s economy, with robust harvests of coffee, tea, and maize contributing significantly to export revenues. The government has intensified efforts to modernize farming through irrigation schemes, seed research, and agro-industrial parks that promote value addition before exports. This approach is gradually shifting Uganda from being primarily a supplier of raw commodities to a producer of processed goods that command higher prices on regional and international markets. At the same time, tourism and information technology services have shown resilience, further diversifying growth away from purely primary production.

The country’s long-anticipated oil sector is also shaping medium-term economic prospects. The Lake Albert oil reserves, estimated at over 6.5 billion barrels, are being developed through projects such as the East African Crude Oil Pipeline (EACOP) and associated refinery investments. While full production is expected later this decade, preparatory infrastructure and local contracting have already begun stimulating the economy. Roads, power transmission lines, and pipeline construction have created new jobs and attracted significant foreign investment, particularly from French and Chinese energy companies. The government’s local content policies seek to ensure Ugandan firms benefit directly from these projects, creating linkages across engineering, construction, and services. This gradual integration of oil wealth into broader development planning underscores Uganda’s aim to avoid the pitfalls of resource dependency seen in other contexts.

Alongside sectoral advances, Uganda has pursued structural reforms to sustain growth. Financial inclusion initiatives, supported by mobile money expansion, have broadened access to credit for small businesses and rural households. Investments in hydropower and renewable energy are stabilizing the electricity supply and reducing bottlenecks for industrialization. Regional integration within the East African Community has also expanded trade opportunities, positioning Uganda as a central player in cross-border commerce with Kenya, Tanzania, Rwanda, and South Sudan. These combined efforts highlight a growth model that builds on traditional strengths in agriculture while preparing for an oil-driven transformation, placing Uganda in a stronger position to balance immediate expansion with long-term structural change.

8. Democratic Republic of Congo

The Democratic Republic of Congo achieved an estimated 6.7 percent GDP growth in 2024, one of the strongest in Central Africa. This performance is closely tied to the country’s unparalleled mineral wealth, particularly copper and cobalt, which are central to global clean energy supply chains. The DRC currently accounts for more than 70 percent of the world’s cobalt output, making it indispensable for electric vehicle batteries and renewable technologies. Rising international demand, coupled with higher production from the Katanga region, has boosted export earnings and fiscal revenues. This mineral-driven expansion has also stimulated associated industries, including transport, logistics, and energy, which benefit from the growing movement of goods within and beyond the country.

Beyond mining, structural changes are gradually strengthening the broader economy. The government has launched programs to improve agricultural productivity in fertile provinces such as Kasaï and Équateur, aiming to reduce reliance on food imports despite vast arable land. Telecommunications and digital services are also gaining momentum, with mobile money platforms and internet connectivity expanding rapidly in urban centers like Kinshasa, Lubumbashi, and Goma. These shifts are encouraging entrepreneurship and offering opportunities for diversification away from raw mineral exports. Furthermore, investment in hydroelectric projects, such as the Inga III dam, is designed to provide long-term energy security and create the basis for industrial processing of the country’s vast natural resources, allowing more value to be captured domestically.

Policy reforms and regional integration efforts are further shaping the country’s growth outlook. The government has strengthened mining regulations to increase transparency and raise state revenues from natural resource exports, while also encouraging joint ventures with international companies to ensure technology transfer and local participation. Engagement with the African Continental Free Trade Area (AfCFTA) is expected to improve trade links with neighboring economies, supporting diversification in manufacturing and services. Additionally, investments in transport corridors such as the Lobito Corridor are connecting the DRC’s mineral-rich regions to Atlantic ports, reducing reliance on longer routes through Southern Africa. These developments indicate that while mining remains the primary engine of growth, complementary reforms and infrastructure expansion are laying the foundations for a more balanced and resilient economy.

7. Senegal

Senegal’s economy expanded by an estimated 6.9 percent in 2024, reflecting a strong combination of public investment, private sector participation, and structural reforms. Dakar has positioned itself as a hub for West African finance, logistics, and services, attracting multinational firms and fostering a stable business environment. Major infrastructure projects, including the Blaise Diagne International Airport and the Dakar Regional Express Train, have strengthened the country’s connectivity and competitiveness. These initiatives are part of the government’s Plan Sénégal Émergent, a long-term framework launched to modernize infrastructure, diversify the economy, and build an industrial base that can absorb a growing labor force.

A defining factor for Senegal’s medium-term growth is the development of its offshore oil and gas resources. The Sangomar oil field and the Greater Tortue Ahmeyim (GTA) gas project, shared with Mauritania, are expected to begin production within the decade. Although their full impact is yet to materialize, preparatory investments in ports, energy infrastructure, and workforce training are already stimulating the economy. These projects also provide opportunities for domestic industries in construction, engineering, and services to integrate into global energy supply chains. At the same time, Senegal has prioritized renewable energy, with solar parks such as the Bokhol and Malicounda projects supplying growing portions of domestic electricity, thereby reducing reliance on imports and stabilizing energy costs for households and businesses.

Reforms in the financial and agricultural sectors further reinforce Senegal’s trajectory. Expansions in mobile banking and microfinance have widened access to credit, while targeted programs are modernizing the peanut, fisheries, and horticulture industries, which remain central to exports and rural livelihoods. Integration into the African Continental Free Trade Area is opening broader markets for Senegalese goods and services, positioning the country as a competitive player in regional trade. By balancing energy development with renewable projects, strengthening connectivity, and pursuing reforms that encourage entrepreneurship, Senegal is consolidating its reputation as one of West Africa’s most stable and forward-looking economies.

6. Cabo Verde 

Cabo Verde posted an estimated 7.3 percent GDP growth in 2024, positioning itself among the fastest-growing economies in Africa despite its small size and limited natural resources. The island nation has built its economic model around services, particularly tourism, which accounts for more than a quarter of GDP. Visitor arrivals surged in 2024 as improved air links with Europe and new hotel investments boosted the sector. The government has also focused on strengthening maritime transport and port services, leveraging its location along trans-Atlantic shipping routes to expand revenue streams. These developments underscore how strategic positioning and policy stability can sustain robust growth in an economy with a population of just over half a million.

A key area of transformation lies in Cabo Verde’s energy and digital infrastructure strategies. The country has committed to achieving 100 percent renewable energy by 2030, with wind and solar projects already supplying a growing share of electricity. These initiatives not only reduce dependence on imported fossil fuels but also make energy more affordable and reliable for households and businesses. Simultaneously, Cabo Verde has invested heavily in digitalization, with e-governance platforms, fiber-optic connectivity, and ICT training programs creating opportunities in the knowledge economy. This combination of renewable energy and digital infrastructure is designed to diversify the economic base beyond tourism, ensuring long-term resilience against external shocks such as global travel disruptions.

Policy reforms and international partnerships further reinforce Cabo Verde’s growth trajectory. The government has pursued fiscal discipline while channeling concessional loans and grants into infrastructure and human capital development. Partnerships with the European Union, the African Development Bank, and the United Nations Development Programme have supported initiatives in climate resilience, youth employment, and sustainable tourism. At the same time, targeted programs for diaspora engagement encourage investment and entrepreneurship from Cabo Verdeans abroad, creating an additional flow of capital and expertise. Together, these strategies highlight how a small island economy can leverage location, renewable energy, and human capital to maintain strong and inclusive growth.

5. Ethiopia 

Ethiopia recorded an estimated 7.3 percent GDP growth in 2024, reflecting its status as one of Africa’s largest and most dynamic economies. Agriculture continues to serve as the foundation of this growth, with coffee, oilseeds, and horticulture exports providing substantial foreign exchange earnings. Recent efforts to modernize farming through irrigation, improved seed distribution, and mechanization are gradually raising productivity across rural regions. At the same time, Ethiopia’s population of over 120 million offers both a vast labor force and a growing domestic market, making it an attractive destination for investors seeking scale in manufacturing and services. This dual strength of agriculture and market size has been central to Ethiopia’s continued expansion despite broader regional challenges.

The government’s industrialization strategy, anchored by industrial parks, is reshaping the economy by promoting manufacturing and value addition. Facilities such as the Hawassa and Bole Lemi industrial parks have attracted foreign firms in textiles, apparel, and leather goods, positioning Ethiopia as a competitive exporter in global supply chains. These parks are supported by investment incentives, low-cost electricity from hydropower, and trade agreements such as the African Continental Free Trade Area, which facilitate regional market access. Beyond textiles, Ethiopia is also targeting pharmaceuticals, agro-processing, and light manufacturing as part of its long-term diversification agenda. The development of transport infrastructure, including the Addis Ababa–Djibouti railway, further supports industrial exports by reducing logistics costs and connecting inland factories to seaports.

Policy reforms and infrastructure investments continue to shape Ethiopia’s future trajectory. Macroeconomic stabilization measures, including fiscal adjustments and exchange rate reforms, aim to attract foreign direct investment and reduce external imbalances. Renewable energy expansion, particularly through hydropower projects like the Grand Ethiopian Renaissance Dam, is creating a reliable electricity base for industrial growth. Meanwhile, digitalization initiatives are opening opportunities in fintech, e-commerce, and public services, broadening the scope of growth beyond traditional sectors. These developments illustrate Ethiopia’s determination to pair agricultural strength with industrial and technological advancement, laying the groundwork for sustained and diversified economic expansion.

4. Benin 

Benin achieved 7.5 percent GDP growth in 2024, one of the highest rates in West Africa, underscoring the impact of structural reforms and strategic investments in trade infrastructure. The government has implemented policies aimed at improving fiscal discipline, modernizing customs operations, and expanding revenue collection, which have strengthened macroeconomic stability. These reforms have created a more predictable environment for business and investment, encouraging both domestic and international actors to expand operations within the country. The growth also reflects Benin’s success in diversifying away from reliance on informal cross-border trade, as formalized logistics and regulatory improvements are drawing more value into the formal economy.

A significant driver of Benin’s recent performance has been the modernization of its port facilities and transport corridors. The Port of Cotonou, one of West Africa’s busiest gateways, has undergone upgrades that streamline container handling, expand capacity, and enhance customs efficiency. These developments not only serve Benin’s domestic economy but also strengthen its role as a regional hub for landlocked neighbors such as Niger, Burkina Faso, and Mali. The government’s focus on corridor infrastructure, including road and rail connectivity, positions Benin as a key facilitator of intra-African trade, particularly under the African Continental Free Trade Area framework. Improved logistics are simultaneously boosting exports of cotton and agricultural produce while enabling the importation of capital goods essential for industrial development.

Benin’s reform-driven growth is also evident in the expanding role of digital services and governance innovations. The introduction of e-governance platforms, digital payment systems, and mobile-based tax services has improved transparency and efficiency in public administration. At the same time, investment in rural electrification and renewable energy is widening access to reliable power, enabling small businesses and agro-processors to scale operations. With stability and reforms converging, Benin is positioning itself as a competitive and reform-minded economy in West Africa, signaling strong potential for sustained growth in the years ahead.

3. Niger

Niger posted a GDP growth rate of 8.4 percent in 2024, one of the strongest on the continent, reflecting the dual role of resource development and improving regional integration. Long regarded as a country with limited industrial activity, Niger has emerged as a fast-growing economy largely due to its uranium and oil production, alongside agricultural output. Recent investments in energy projects, including the expansion of the crude oil pipeline linking Niger to Benin’s coast, have enhanced export capacity and created fiscal space for infrastructure spending. At the same time, government-led reforms targeting budget transparency and investment regulations have gradually improved the investment climate, allowing Niger to attract development partners and private capital to critical sectors.

Infrastructure connectivity is proving central to Niger’s expansion. As a landlocked state, its ability to participate in regional trade depends heavily on corridors leading to coastal ports. The Niger-Benin oil pipeline, completed in 2023, has become a strategic asset, enabling the country to monetize petroleum resources more efficiently while generating transit-related economic activity. Parallel to this, investments in road rehabilitation and electrification programs are creating new avenues for agricultural commercialization, particularly for millet and livestock, which remain vital to livelihoods. These structural improvements not only support domestic growth but also strengthen Niger’s role in the West African regional economy.

The government has also prioritized programs aimed at expanding education, renewable energy, and financial inclusion, recognizing that long-term growth requires diversification beyond extractive industries. Solar power projects, supported by international financing, are being deployed to improve rural electrification and reduce dependence on imported energy. Meanwhile, mobile banking initiatives are expanding access to credit for farmers and small businesses, further embedding growth at the community level. These measures, combined with Niger’s natural resource base and expanding trade corridors, provide a foundation for sustained economic momentum despite broader regional challenges.

2. Eritrea 

Eritrea recorded an impressive GDP growth rate of 8.7 percent, with its most recent verified figures highlighting how resource-driven development and infrastructure projects are fueling momentum. The mining sector remains the backbone of this expansion, with gold, copper, zinc, and increasingly potash serving as the principal export commodities. The Bisha Mine has historically anchored this growth, and newer projects such as the Colluli Potash Project are set to transform Eritrea into a leading global supplier of fertilizers. These extractive industries not only contribute directly through export earnings but also support fiscal revenues, creating space for investment in public services and capital projects.

Infrastructure development has been a parallel driver of growth. Roads, power lines, and port facilities have been upgraded to support mining exports, while regional transport initiatives are expanding Eritrea’s role as a transit hub along the Red Sea. The government has been investing in the rehabilitation of Massawa and Assab ports, strengthening trade corridors that connect East Africa with global markets. These infrastructure investments are strategically aligned with the mining sector but are also designed to open opportunities for agriculture and manufacturing, laying the groundwork for more diversified economic activity in the medium term.

Beyond extractives and logistics, Eritrea has demonstrated progress in energy and agricultural initiatives aimed at reinforcing economic self-sufficiency. Solar and wind projects are gradually reducing reliance on imported fuel, improving energy stability for households and small enterprises. Agricultural modernization programs, including irrigation and seed distribution schemes, are being scaled up to boost food security and rural livelihoods. Although the private sector remains tightly regulated, Eritrea’s high growth figures point to how mineral wealth, combined with targeted infrastructure and energy projects, is shaping one of the continent’s fastest-growing economies.

1. Rwanda 

Rwanda led the continent with a GDP growth rate of 8.9 percent in 2024, reflecting its transformation into one of Africa’s most dynamic economies. The country’s consistent performance has been anchored in strong governance, disciplined macroeconomic management, and a deliberate strategy to shift toward services and high-value sectors. Growth has been supported by rising investment in construction, digital services, and manufacturing, while agriculture continues to provide stability and food security. This broad-based expansion signals the success of Rwanda’s long-term vision, which seeks to balance industrialization with inclusive growth.

The government’s policy framework has been central to sustaining momentum. Rwanda has implemented reforms that streamline business registration, improve property rights, and enhance access to credit, creating one of the most competitive environments for investment in Africa. Kigali’s emergence as a hub for conferences, financial services, and technology reflects this push, with foreign direct investment increasingly targeting ICT and innovation. Large-scale infrastructure projects, including new transport corridors, renewable energy plants, and the Kigali Innovation City initiative, are positioning Rwanda as a regional center for knowledge-driven growth. These measures have improved productivity while reinforcing Rwanda’s reputation as a reform-driven state with clear long-term planning.

Rwanda’s growth strategy also emphasizes resilience and human capital. Social investments in universal healthcare, education, and women’s economic participation have strengthened inclusivity and broadened the base of growth. At the same time, renewable energy expansion and environmental initiatives such as forest restoration and green city planning are aligning the country’s development model with sustainability goals. By combining institutional reforms, infrastructure investment, and social development, Rwanda demonstrates how African economies can sustain high growth while building resilience for future challenges.

We welcome your feedback. Kindly direct any comments or observations regarding this article to our Editor-in-Chief at [email protected], with a copy to [email protected].