In this article, we will list some of the richest countries in Africa.
The richest countries in Africa are ranked GDP per capita based on purchasing power parity.
Africa is home to more than fifty countries and traditionally the continent has been regarded as one of the poorest continents in the world, but Africa is becoming a new investment destination for foreign investors thanks to these progressing economies on the continent.
What is GDP per capita based on purchasing power parity?
GDP per capita (PPP-based) is gross domestic product converted to international dollars using purchasing power parity rates and divided by total population. GDP per capita (PPP-based) is usually computed among a large number of countries and expressed in terms a single currency, with the U.S. dollar (US$) most commonly used as the base currency.
GDP per capita (PPP-based) measures how much of a local product a person can buy in their country, e.g., $2 might get you a nice meal in Nigeria, but that same $2 might not get you a bottle of water in Equatorial Guinea.
The 10 Richest Countries in Africa Based On Purchasing Power Parity of GDP Per Capita
The following are the richest ten countries in Africa based on GDP per capita.
GDP (PPP) Per Capita: $10,891.30
Major Source of Income: Oil and Gas
Egypt has one of the most developed economies in Africa, and it is the third largest economy in Africa behind South Africa and Nigeria respectively. The energy market in Egypt is well developed. Currently, Egypt’s gas reserves are estimated at 1,940 cubic kilometres.
GDP (PPP) Per Capita: $11,397.20
Major Source of Income: Mixed
Tunisia has one of the best-run economies in Africa. The oil-producing African nation runs a well-diversified economy, with key exports such as textiles, food products, chemicals, and phosphates. Tunisia successfully underwent a period of political transition, following the uprising that led to the removal of President Zine al-Abidine Ben Ali in January 2011 at the start of the Arab Spring. Currently, the outlook is positive, and Tunisia remains one of the richest countries in Africa.
8. South Africa
Capital: Pretoria, Cape Town, Bloemfontein
GDP (PPP) Per Capita: $13,165.10
Major Source of Income: Mixed Economy
With its high energy production, major tourist attractions, highly regarded wines, diversified economy and a GDP per capita based on purchasing power parity of $11,500, Republic of South Africa ranks eighth on the list of the richest countries in Africa. South Africa is Africa’s second largest economy by GDP; it was overtaken as the largest economy when Nigerian rebased its GDP calculations for the first time in over two decades.
GDP (PPP) Per Capita: $14,154.30
Major Source of Income: Oil
Libya is Africa’s fourth largest oil producing nation and one of the richest countries in Africa. Libya’s major source of income comes from Oil as it holds the largest proven oil reserves in Africa and the 10th largest in the world. Libya is one of the few African countries designated as an upper middle economy by the World Bank.
GDP (PPP) Per Capita: $14,687.40
Major Source of Income: Energy
The Algerian economy is largely based on its fossil fuels energy sector, which accounts for at least 60 percent or more of the budget revenues, at least 30 percent of the country’s GDP, and more than 95 percent of Algeria’s export earnings. Algeria requires an urgent plan to diversify its economy due to the current volatility in the global oil industry. However, Algeria remains one of the richest countries in Africa.
GDP (PPP) Per Capita: $15,807.10
Major Source of Income: Minerals
Botswana, the second largest producer of diamonds in the world, is a mid-sized country in Africa with a population of just over two million people. Botswana, formerly among the poorest countries in the world is now one of the fastest-growing economies in the world. Botswana boasts of a GDP (purchasing power parity) per capita of about $16,400 per year, and this makes it the fifth richest country in Africa.
Capital: Port Louis
GDP (PPP) Per Capita: $19,480.50
Major Source of Income: Diversified
Mauritius is an island in the Indian Ocean with a per capita income higher than the global average. The economy of Mauritius is a well-diversified economy that benefits from sugar production, tourism, textiles and apparel production, and financial services.
GDP (PPP) Per Capita: $20,010.1
Major Source of Income: Oil
Gabon is one of Africa’s largest oil producing nation. According to BBC, Gabon is one of Africa’s more stable countries. Since it gained independence from France in 1960, Gabon has had just three presidents. Gabon’s low population density and booming oil production have helped the country become one of the richest countries in Africa. Gabon is also the highest ranked African country on the Human Development Index, and with a GDP (purchasing power parity) per capita of about $16,400 per year, it is ranked the third richest country in Africa.
GDP (PPP) Per Capita: $ 27,273.5
Major Source of Income: Fishing
Seychelles is an island in the Indian Ocean to the East of Africa, and its primary sources of income are industrial fishing and Tourism. Seychelles GDP is just about $2.4 billion, but with a population of 92,000 and a one percent unemployment rate, Seychelles is the second richest country in Africa.
1. Equatorial Guinea
GDP (PPP) Per Capita: $30,040.7
GDP: $9,397,792.25 USD
Major Source of Income: Oil
Equatorial Guinea is a small African country that shares its borders with Cameroon and Gabon. Equatorial Guinea has a population of less than a million and it one of Africa’s largest producers of oil. Like most oil-rich African countries, Equatorial Guinea is plagued by a high-level of corruption. However, due to its oil wealth and low population, Equatorial Guinea’s GDP per capita based on purchasing power parity of $30,040.07 is twice as high as the global average per capita income. Consequently, Equatorial Guinea is the richest country in Africa.
GDP Per Capita: The World Development Indicators by the World Bank
Major Source of income: CIA World Factbook