Boosted by the pandemic-induced transition to wireless commerce, some African nations have been showing impressive economic growth amid a global slowdown, Bloomberg reported this week.
According to the publication, five of the world’s ten fastest-growing economies, namely Uganda, Côte d'Ivoire, Ghana, Rwanda, and Kenya, are in Africa, and at least several more countries on the continent are expected to outperform their global peers over the next two years.
Data shows that Rwanda’s gross domestic product expanded by 11.1% in 2021 and 8.2% in 2022, when the world averaged 6.3% and 3.5% growth, respectively.
Analysts forecast Rwanda will again lead the continent with an estimated growth rate of 6.8% this year, followed by Mozambique at 6.4%, Côte d'Ivoire at 6.2%, and Ethiopia and Uganda at 5.5%, while the world economy is estimated to grow just 2.8%.
“The coronavirus, if anything, accelerated the transition among Africa’s 54 countries to wireless, remotely engaged commerce from traditional exporters of natural resources in a region of the world where people are younger than anywhere else on average,” Bloomberg wrote.
The Sub-Saharan telecommunications industry has been delivering “extraordinary” stock market performance and revenue increases, according to the report. For the 15 major companies in the region, sales are reportedly expected to soar 18% this year and 9% in 2024 and 2025 after leaping 29% over the past five years.
“The outlook for corporate Africa is similarly stellar with the financial, communications, and consumer staples industries outperforming the world in 2024,” Bloomberg wrote, noting telecom firms are estimated to see an 11% sales rise, exceeding the global average of 3%.
The report pointed out that while global investors have been suffering their worst losses in the bond market, Ghana’s sovereign bonds returned 20% so far this year, followed by 11% from Mauritius and Zambia.
“None of this investor confidence would be possible without the persistence of Africa’s exceptional growth,” Bloomberg concluded.