Ghana has 10th Largest Economy in Africa

Afrique has compiled a list of the largest economics in Africa based on the GDP (Growth Domestic Product) for the year 2005. It is a list dominated by the North African countries. The GDP is the total value of goods and services produced by a nation in a given year. This gives an indication of the economic activity within the nation. In this article we have profiled the ten largest economies on the continent.

10. Ghana – GPD: $54.45 billion The tenth ranked country on the list was also the first country to gain independence in sub-Saharan Africa in 1957. Despite being a country with plenty of natural resources, Ghana is still heavily dependent of international aid and technical assistance. Its chief exports are gold, timber and cocoa. Ghana operates a subsistence agriculture-based economy and employs about 60% of its workforce.

9. Ethiopia – GDP: $62.88 billion Ethiopia has a laboured history checkered with bloody coups, uprisings, wide-scale drought, and massive refugee problems. It had its first multiparty elections in 1995 after the adoption of a new constitution in 1994. Ethiopia has an agrarian based economy which accounts for 60% of exports, and 80% of total employment. Coffee remains the chief export of the country, however low coffee prices force farmers to growing qat to make for the low income of from the sale of coffee. The economy benefited from debt relief from the IMF’s Highly Indebted Poor Countries (HIPC) initiative, however government policy to own all the land in the country, has stifled growth as this prevents businesses from using collateral as loans to finance their operations.

8. Libya – GDP: $65.79 billion Libya has been ruled by one man since 1969, Muammar Abu Minyar al-Qadhafi, who has promoted his own political system, the Third Universal Theory. Despite 4 years of UN sanctions following the Lockerbie bombings, Libya still has one of the largest economies in Africa, which is heavily reliant on oil and gas and accounts for 95% of its exports and 25% of the GDP.

7. Tunisia – GDP: $83.54 billion Tunisia has a diverse economy with major agricultural, mining, energy, tourism, and manufacturing interests. Although still a mainly a government controlled economy, there has been increasing privatization which is expected to increase foreign investments. The government has put in places polices to remove barriers to enable it trade with the EU.

6. Sudan – GDP: $85.65 billion This is a nation used to conflicts, having under gone two civil wars and is now faced with the present conflict in Darfur. The last civil war and the present conflict keeping the government busy for the last two decades. However this has not stopped Sudan from turning around a struggling economy with sound economic policies and infrastructure investments, but it still faces formidable economic problems, starting from its low level of per capita output. Continuing conflicts amongst its population would ensure that this remains the status quo for some time. The economy is mainly dependent of agriculture but it became to export oil in 1999.

5. Morocco – GDP: $138.3 billion A country steeped in rich history, Morocco’s economy is something of an enigma. Despite achieving macroeconomic stability, poverty is still on the increase. This has also not been helped by the fact that the country depends on foreign energy and has a rudimentary banking system, which does not encourage the growth of small to medium enterprises.

4. Nigeria – GDP: $174.1 billion Africa’s most populous country is currently undergoing it longest period of civilian rule. A country still largely dependent on oil foreign receipt as past leaders failed to diversify the economy and allowed it’s largely subsistence agrarian sector to falter. Once a mass exporter of agricultural produce, the country now depends on importing to feed its fast growing populace. The present government has put in place a number of market policies put forward by IMF which included reforming its banking sector and controlling inflation by reducing excessive wages increase demands to push forward its economy.

3. Algeria – GDP: $233.2 billion A nation plagued with many social and infrastructure problems; its economy is heavily reliant on the petroleum industry. High energy prices have helped the economy with 60% of the dependent of the sale of the petroleum, which also accounts of 95% of its exports. Real GDP rose in 2005 due to higher oil output and increased government spending.

2. Egypt – GDP: $303.5 billion A country whose growing population and limited arable land, continues to overburden its resources, Egypt finds itself in the second spot on the list. Most of the economy activity in the country occurs along the River Nile which bisects it. Economic reforms in 2005, which boosted enterprise within the country has yet to reach the average man on the streets.

1. South Africa – GDP: $533.2 billion Africa’s largest economy looms over the rest and has an abundant supply of natural resources with well-developed financial, legal, communications, energy, and transport sectors. South Africa has a modern infrastructure that supports an efficient distribution of goods to major urban centers throughout the region and a stock exchange that ranks among the 10 largest in the world.