Far from “African economic miracle”, some African countries accumulate deficits that are often compounded by disastrous political crises delays. Are we talking about the African economic miracle or the worst African economies? No, the continent’s economy is not at its best these last years. The Arab revolutions, the political crisis in Côte d’ Ivoire, or the rising price of oil and the resulting inflation, are all reasons why the African Development Bank (ADB ) have to provide an economic slowdown this year for these 10 worst African economies.
10 worst African economies
The 54 continental states are not all in the same boat. The ranking in which we take into account the whole world, puts Madagascar in the lead of the worst economic damage of the past three years. The Big Island started to sink in 2009, in a political crisis that caused a decline in growth.
To achieve this list of the 10 countries in the world that currently have the lowest rate of growth of real gross domestic product ( GDP) (source: CIA World). The same ranking is based on projections by the International Monetary Fund [PDF] (IMF) in last year, and the rate of corruption (PDF) measured by Transparency International. Because it “affects the whole economic development, not just income”.
It is set below as a ranking, not the “worst” world economies such as Forbes, but the “worst” African economies. However, the method is the same as the U.S. magazine: it is based on the clues provided by the CIA, the IMF, the World Bank and Transparency International. In addition, the Human Development Index [PDF] (HDI) is also taken into account. It is calculated by the United Nations Program for Development (UNDP) from the national averages of life expectancy, level of education and standard of living (GDP per capita).
As noted by the author of the Forbes article, Daniel Fisher, do not be surprised not to see it include Somalia. As well as holding the sad record of the most corrupt, it also has indicators showing they are economically and technologically, a less advanced country , however, Somalia now has a more stable GDP growth than in many countries in the “top 10” below.
10. Republic of Côte D’Ivoire
The post-election crisis in the former powerhouse of West Africa is a major blow to the economy. Already affected by a financial downturn since the end of the civil war in 2003, the growth of the Ivorian GDP, according to the IMF, collapsed drastically. As exporters of cocoa, the country’s economic strength had been interrupted during the crisis. After the arrest of incumbent President Laurent Gbagbo on 11 April, the country hoped to find a positive growth from 2012. In this context , France has to remain the “partner of the Ivory Coast”.
The country was on track until the economic crisis divided the growth in Benin by half. The country’s GDP fell dramatically from 2010 due to the world financial crisis. However, the country can rely on the production of cotton, its main strength to regain the ranks.
The economic deterioration of Benin is also embodied in the waves of protests following the re-election of incumbent President Boni Yayi in March 2011. It has been accused of over-indebting of the country by “using public money for electioneering purposes,” noted the journalist Marcus Boni Teiga .
The economy of this small southern Africa depends almost entirely of South Africa, where it is locked. Lesotho is however rich in its main natural resource: water, which they sell to the neighboring countries and it’s allows them to be independent to 90% in terms of power.
Despite rapid economic growth, the country maintains a low HDI. The failure of the State worsened in 2011-2013 and the country is the 12th least developed state in the world (LDCs).
The second newest state in Africa, which became independent in 1991, It’s economy has suffered from the long-term conflict, that opposed to Ethiopia between 1998 and 2000. It is based primarily on subsistence farming.
To take advantage of the situation, the Front for Democracy and Justice Isaias Afewerki (the single party of the president) expressed their “desire to install a true market economy” in Eritrea, wrote to the CIA World Fact-book – the country is actually very favorable of plans to privatize enterprise economy.
The islands of the Indian Ocean are the second poorest country in the world in terms of GDP, after Sao Tome and Principe. Growth is expected to stagnate in 2011-2013.
The inhabitants live by fishing and subsistence farming. The Comoros archipelago is rich in vanilla, cloves and ylang -ylang . However, it struggles to feed itself . Thus, remittances from the diaspora actively support the economy.
In addition, the country’s president Ikilikou Dhoinine is among the top 20 most corrupt political states.
Despite an average HDI, it is difficult to say that the economy is doing well. It is based mainly on the export of sugar. Such as Lesotho, Swaziland is dependent on South Africa, to which it exports 60 % of its production.
IMF projections for this small landlocked country are dire. The country is ranked 8th by taking into account all the continents (Forbes).
The Guinean economy has suffered from mismanagement of the military junta in 2009, which led to inflation, corruption and named them the most failed in the world at the head of states.
But Guinea has abundant natural resources it holds two-thirds of the world’s bauxite reserves, but also has gold, diamonds, and a large hydro-power potential.
The return to political stability, with Alpha Conde, the first democratically elected president in December 2010 is expected to restart the economy.
Angola the ex-Portuguese colony, which is part of the Organization of Petroleum Exporting Countries (OPEC) since 2006, derives most of its income from oil. This sector contributes to effect 85% of GDP. But the growth rate of the country has fallen drastically, mainly because of lower oil prices.
On the other hand , Angola is the sixth most corrupt country in Africa , according to Transparency International and has a human development index despite a low gross national income ( GNI) per capita high – reflecting a particularly unequal distribution of wealth.
2. Equatorial Guinea
The two “firsts” in this ranking have in common a negative GDP growth these last years. Such as Angola, the country has suffered from the decline in oil prices. It is also the fifth most corrupt country in Africa.
The great paradox is that Equatorial Guinea is one of the highest GDP per capita in the world thanks to oil revenues capita, but is among the least developed countries (LDCs) under the poverty of the population.
All the economic indicators of the Big Island are currently in the red : negative growth, a low HDI , a low per capita GNI , a failed state and a crisis of confidence on the part of foreign investors from the takeover of the former mayor of the capital.
The economic potential of Madagascar is untapped despite abundant natural resources. In the countryside, the population still lives on shifting cultivation, exacerbating the problem of deforestation on the coasts and in natural reserves, tourists are expected, and more generally, the forces of the country prefer to wait for the return to political stability to engage in projects.