11 African countries are in the top 20 economies with the highest economic growth, according to a world ranking established by the AfDB. Madagascar, which is not on this podium, shows GDP growth higher than the continent’s average.
A budget balance in the red, showing a deficit of 6.4% of GDP (gross domestic product), a current account balance in deficit of 3.6% of GDP, average economic growth of 4.9% and a rate of inflation at 7.4%. These figures summarize the average performance of Madagascar for the years 2024-2025, according to the projection indicated by the ADB Group (African Development Bank) in its report entitled “ Africa’s Macroeconomic Performance and Outlook 2024 », published last Friday. However, for the entire continent, the AfDB Group offers a promising picture for this year 2024. Indeed, Africa is positioned as a major player in global economic growth, with eleven of its nations among the twenty countries showing the strongest growth in the world.
Evolution. Africa’s real GDP is projected to grow by an average of 3.8% this year and reach 4.2% in 2025, figures exceeding global averages. These trends demonstrate the economic strength of the continent, which is expected to remain the second fastest growing region after Asia. Among the 11 African countries leading the pack for 2024 are Niger, Senegal, Libya, Rwanda, Ivory Coast, Ethiopia, Benin, Djibouti, Tanzania, Togo and Uganda. Although Madagascar is not ranked among the top twenty, the country is expected to have economic growth of 4.5% for this year 2024, according to ADB projections. This indicator aligns with that noted in the initial 2024 finance law, but is below the World Bank projection which indicates a rate of 4.8%. On the other hand, in 2025, the ADB forecasts economic growth of 5.3% for Madagascar.
Diversification necessary. Akinwumi Adesina, President of the AfDB Group, highlights the challenges and opportunities ahead. It calls for increased funding and targeted policy interventions to support the continent’s growth, while emphasizing the importance of economic integration to strengthen African competitiveness on the global stage. The report highlights efforts by African policymakers to diversify economies, invest in key sectors and consolidate fiscal positions. However, it also highlights the risks posed by growing geopolitical tensions, regional conflicts and political instability, which could hamper economic progress. Kevin Urama, Chief Economist and Vice President of the ADB Group, emphasizes the importance of economic diversification and infrastructure investments to support robust long-term growth. It also highlights the need to continue structural reforms and strengthen the continent’s industrial capacities. In short, in different African regions, economic prospects vary. East Africa is leading the charge with an expected growth of 5.1% in 2024, followed by West Africa with an expected growth of 4%. In contrast, Southern Africa shows more moderate growth, while Central Africa faces persistent challenges despite signs of recovery.
Ansa R.