According to a United Nations report, Tanzania is projected to be the third fastest-growing economy in Africa in 2023 with a growth rate of 5.6 percent, following Cote d’Ivoire and Rwanda. Cote d’Ivoire, the world’s largest producer of cocoa, is expected to register a growth rate of 6.5 percent due to successful technology-driven transformation and recent foreign direct investments. Rwanda is expected to have a 7.8 percent GDP growth in 2023, driven by technology and foreign investment.
Uganda and DR Congo, East African Community (EAC) partner states, are expected to have a modest growth rate in 2023. The report states that Africa’s economic growth is expected to be impacted negatively in 2023 due to several factors, including a major rise in global inflation, higher borrowing costs, and the impact of climate change.
Despite security challenges in its eastern part, DR Congo is expected to register one of the fastest growth rates in the continent due to increased mining. The report suggests that positive growth for the African economies during this period means that the biggest companies will have to perform well.
While Tanzania is ranked the 10th richest country in Africa by overall GDP based on the current exchange rate, it is not among the top 10 economies on the continent based on purchasing power parity (PPP). Nigeria is currently the largest economy in Africa, followed by South Africa and Egypt.
The economic outlook for Uganda, with a total GDP of $40.5 billion in 2021, will remain challenging, but the EAC member country is expected to register a modest economic growth in 2023. Kenya, despite being among the seven strongest economies on the continent, will have an uncertain economic outlook, forcing several company CEOs to cut spending to counter growing economic issues.
Ethiopia, whose high flying growth was impacted by the conflict in Tigray province, is hoping for recovery due to a recent ceasefire. South Africa, considered the most advanced economy in Africa with a 25 percent GDP increase in 2021, is facing a serious crisis due to the lack of stability in electricity supply, affecting both residents and industries. Morocco, the economic giant of the Maghreb region, is expected to maintain its growth rate of 3 percent, despite drought, war, and inflation, as estimated by the International Monetary Fund (IMF).
In conclusion, while the growth rate of Africa’s economy is expected to fall in 2023, Tanzania is among the top three fastest-growing economies on the continent, with positive growth rates expected in DR Congo and Rwanda.