AFRICA ( Commonwealth Union) _ According to a United Nations estimate, the East African country will grow slower than Rwanda and Cote d’Ivoire, at 5.6 percent.
According to forecasts, Cote d’Ivoire, which produces 30% of the world’s cocoa, would expand by 6.5 percent this year.
The successful application of technology and recent foreign direct investments would cause Rwanda’s GDP to rise by 7.8 percent in 2023. The East African Community (EAC) partner states Uganda and the mineral-rich DR Congo would have modest development in 2023. According to a survey on the 30 largest economies in Africa, Tanzania’s economy is predicted to grow by 5.6 percent this year.
Tanzania has been listed by the World Bank as the tenth richest nation in Africa by gross domestic product (GDP), calculated using the current exchange rate. The nation is followed in order by Cote d’Ivoire, Ghana, Kenya, Ethiopia, Morocco, and Algeria. The continent’s largest economies at the moment are Nigeria, South Africa, and Egypt. Tanzania, however, does not rank among the top 10 economies on the continent in terms of PPP-based global GDP. Tanzania will have strong growth, along with Cote d’Ivoire and Rwanda, but the scenario for the continent will be slightly different.
The UN predicts that a number of issues would have a negative impact on Africa’s economic growth in 2023.
It is anticipated that growth will slow from the 4.1 percent recorded last year (2022) to 3.8 percent this year (2023).
While investors elsewhere are still reluctant to risk their money, exports will continue to decline. While growth in West Africa is anticipated to pick up in 2023, it is anticipated to remain steady in East and Central Africa.
The largest economies on the continent, those in North and Southern Africa, will have slower development.
These have been linked to the effects of climate change, a sharp increase in global inflation, and higher borrowing costs. The largest corporations will need to perform effectively in order for the African economies to grow favourably during this time. Despite the security issues in its eastern region, the Democratic Republic of the Congo will have one of the fastest growth rates on the continent in 2023 thanks to increased mining.
The research, which The Citizen was able to view, stated that while there are a number of risks to the country’s economic growth rate, the positives are set to far outweigh the negatives. The economic forecast for Uganda, whose total GDP was $40.5 billion in 2021, will continue to be difficult.
According to the forecasts, the EAC member nation would experience a modest economic growth in 2023.
Despite being one of the continent’s top seven economies, Kenya’s economic future is uncertain.
According to the study, this has led numerous firm CEOs to look for budget cuts in an effort to combat the worsening economic problems. Ethiopia will pin its chances for recovery on a recent truce. Ethiopia’s high-flying economy was hindered by the violence in the Tigray province.
After a ceasefire was reached, the war ended in November of last year, which should result in a boost to the country’s economy in 2023. With a staggering 25 percent GDP increase in 2021, South Africa’s economy, which is thought to be the most developed in Africa, has been courting a catastrophic problem. The unstable electrical supply, with rolling blackouts affecting both residents and industries, is one of South Africa’s main problems right now.
The International Monetary Fund (IMF) recently praised Morocco, the Maghreb region’s economic powerhouse, for its achievements. The Bretton Woods institution predicts that its projected 3 percent growth rate won’t be affected by drought, war, or inflation.
