The 10 Richest Countries in Africa List by GDP (PPP)

Here is the ranking of the top ten African nations based on the ability of the citizens to make purchases during the year, referred to by economists as GDP (PPP) or Purchasing Power Parity. This method differs from just looking at the overall economic wealth of a nation. It examines the relative cost of local goods, services and inflation across the country. Then it gives us an idea of the quality of economic life for the local people. The PPP for the U.S. on this same scale is $57,045.46. This ranks the U.S. at the 9th highest of all nations in the world. This is the method used by the United Nations when measuring poverty levels. And so this is what we rely on in listing The 10 Richest Countries in Africa.

note: The number in the parenthesis is where these African economies rank compared to all economies worldwide. So “4| (81)” means “ranks 4 in Africa and 81st against all nations”.

The total number of independent states in Africa is 54. There is no one flag, there is no one culture, and there is no one language. Over 3,000 different ethnic groups exist throughout the continent. In short Africa is incredibly diverse. Widely accepted as the original home of the human species, today it remains the second-largest continent and home to over 1-billion people.

Also realize that there is a real need to establish a system and update the official statistics for many countries across Africa. With the interest, growth and reach of the African Diaspora a project of this nature should be made a top priority. This list comes from a number of sources for economic data as summarized in the most recent “Richest Country in the World” rankings by Global Finance magazine.

Equatorial Guinea 1 | (37): Equatorial Guinea gained independence in 1968 after 190 years of Spanish rule; it is one of the smallest countries in Africa consisting of a mainland territory and five inhabited islands. Exploitation of oil and gas deposits, beginning in the 1990’s, has driven economic growth in Equatorial Guinea, allowing per capita GDP to rise to over $29,735.42 in 2015. The primary exports are petroleum products and timber. The GDP (PPP) ranking is 37th highest in the world.

Gabon 2 | (55): Gabon’s small population, abundant natural resources, and considerable foreign support have helped make it one of the more stable African countries. Gabon enjoys a per capita income four times that of most sub-Saharan African nations, but because of high income inequality, a large proportion of the population remains poor. The country depended on timber and manganese until oil was discovered offshore in the early 1970’s. Gabon per capita GDP (PPP) is $22,878.98 ranking it at number 55 in the world.

Libya 3 | (63): Libya elected a new parliament in 2014. This followed fighting between government and opposition forces, with the QADHAFI regime ultimately being toppled in mid-2011. Libya’s economy is almost entirely dependent on the nation’s energy sector, which generates about 65% of GDP and 96% of government revenue. Income from the sale of crude oil and natural gas, coupled with a small population, give Libya one of the highest nominal per capita GDPs at $19,182.46, number 63 in the world.

Algeria 4 | (81): Algeria government has halted the privatization of state-owned industries and imposed restrictions on imports and foreign involvement in its economy. Hydrocarbons have long been the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the 10th-largest reserves of natural gas in the world and is the sixth-largest gas exporter. It ranks 16th in oil reserves. Declining oil prices have placed stress on the government’s financial strategies and population subsidies. The $14,802.35 GDP (PPP) enable it to rank 81st in the world.

South Africa 5 | (87): Jacob ZUMA became president after the ANC won general elections in 2009; he was reelected in 2014. South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors; and a stock exchange that is Africa’s largest and among the top 20 in the world. The current $13,078.00 GDP (PPP) rank the country number 87 in thw world. The government faces growing pressure from urban constituencies to improve the delivery of basic services to low-income areas and to increase job growth.

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Tunisia 6 | (93): Tunisia’s diverse, market-oriented economy has long been cited as a success story in Africa and the Middle East, but it faces an array of challenges following the 2011 revolution. During 2012 and 2013, security and political upheaval during transition led to a deterioration of the economy and resulted in several downgrades of Tunisia’s credit rating. The government faces challenges reassuring businesses and investors, bringing budget and current account deficits under control, shoring up the country’s financial system, bringing down high unemployment, and reducing economic disparities between the more developed coastal region and the impoverished interior. The GDP (PPP) of $11,896.99 rank the country at number 93 in the world.

Egypt 7 | (96): Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Primary exports are crude oil and petroleum products, fruits and vegetables, cotton, textiles, metal products, chemicals and processed food. In January 2014, voters approved a new constitution by referendum and in May 2014 elected Abdel Fattah Al SISI president. Egypt elected a new legislature in December 2015, the first parliament since 2012. The country’s GDP (PPP) of $11,443.89 rank it number 96 in the world.

Angola 8 | (107): Angola President DOS SANTOS pushed through a new constitution in 2010; elections held in 2012 saw him installed as president. Angola assumed a nonpermanent seat on the UN Security Council for the 2015-16 term. Angola’s economy is overwhelmingly driven by its oil sector. Oil production and its supporting activities contribute about 50% of GDP, more than 70% of government revenue, and more than 90% of the country’s exports. Diamonds contribute an additional 5% to exports. Subsistence agriculture provides the main livelihood for most of the people, but half of the country’s food is still imported. The country’s GDP (PPP) of $8573.33 rank it 107 in the world.

Morocco 9 | (114): In November 2011, the Justice and Development Party – a moderate Islamist party – won the largest number of seats in parliamentary elections, becoming the first Islamist party to lead the Moroccan Government. Morocco has capitalized on its proximity to Europe and relatively low labor costs to build a diverse, open, market-oriented economy. In 2014, Morocco ended subsidies on diesel, gasoline, and fuel oil which have improved its budget deficit. Subsidies on sugar, butane gas, and flour remain. Key economic challenges for Morocco include reforming the education system and the judiciary, while increasing the competitiveness of the private sector. The country’s GDP (PPP) of $8573.33 rank it 107 in the world.

Democratic Republic of the Congo: 10 | (121): Democratic Republic of the Congo (D.R.C.) is one of Africa’s largest petroleum producers, but with declining production it will need new offshore oil finds to sustain its oil earnings over the long term. The economy is a mixture of subsistence farming and hunting, an industrial sector based largely on oil and support services, and government spending. Oil has supplanted forestry as the mainstay of the economy, providing a major share of government revenues and exports. Natural gas is increasingly being converted to electricity. The recent drop in oil prices has forced the government to cut more than $1 billion in planned spending. With a GDP (PPP) of $7,038.16 the country ranks 121 in the world.

WAIT! We have one bonus country. Number 11 is..

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Nigeria 11 | (124) : The 2015 election is considered the most well run in Nigeria since the return to civilian rule, with the umbrella opposition party, the All Progressives Congress, defeating the long-ruling Peoples Democratic Party that had governed since 1999. Following an April 2014 statistical “rebasing” exercise, Nigeria has emerged as Africa’s largest economy, with 2014 GDP estimated at US$479 billion. Oil has been a dominant source of government revenues since the 1970s. Regulatory constraints and security risks have limited new investment in oil and natural gas, and Nigeria’s oil production contracted in 2012 and 2013. The GDP (PPP) of $6,467.23 rand the country at number 124 in the world.

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