The International Monetary Fund (IMF), in its recent World Economic Outlook, has predicted that South Africa is poised to overtake Nigeria as the largest economy in Africa in 2024. According to the IMF’s projections, South Africa’s gross domestic product (GDP) is expected to reach $401 billion by 2024 at current prices, surpassing Nigeria’s GDP of $395 billion and Egypt’s GDP of $358 billion.
South Africa, being the most industrialized nation on the continent, is anticipated to claim the top position in 2024. The IMF’s outlook indicates that South Africa’s economy is set to grow by 0.9 percent in the current year and 1.8 percent in 2024.
However, the report also suggests that Nigeria will regain its top spot in 2026, with South Africa trailing behind Egypt. The possibility of even more rapid growth, ranging from 2.5 to 3 percent, exists if South Africa addresses its power supply issues, resolves logistical challenges, and implements essential reforms.
Meanwhile, Nigeria’s economic growth is expected to slow to 2.9 percent in 2023, down from the 3.3 percent recorded in the previous year. The IMF estimates that the economy will expand by 3.1 percent in 2024, attributing the slower growth to the impact of high inflation, which currently stands at 26.72 percent.