Johannesburg, South Africa – Africa’s ten largest economies remain dominant in GDP rankings, but continue to face deep-rooted challenges that hinder long-term stability, inclusive development, and structural transformation. While progress has been recorded in key sectors, underlying weaknesses in governance, public services, and productivity persist across the continent.
AfricaHeadline Reports Team
editorial@africaheadline.com
In Nigeria, the Ministry of Power confirmed in March 2025 that the country currently produces only 4,500 megawatts of electricity—an insufficient amount for a population of over 220 million. Chronic underinvestment in the energy sector, combined with recurring sabotage of oil and gas infrastructure, continues to affect industrial productivity and investor confidence.
Communal violence in states like Kaduna, Plateau and Benue has intensified, often linked to land disputes and ethnic tensions. According to the Armed Conflict Location & Event Data Project (ACLED), over 3,200 conflict-related deaths were recorded in 2024. Analysts warn that the federal government’s response remains fragmented, with limited fiscal space to address insecurity effectively.
In South Africa, the country continues to struggle with rolling blackouts. State-owned utility Eskom faces operational and financial setbacks, and recent allegations of corruption involving procurement contracts have added to the crisis. President Cyril Ramaphosa has announced a new renewable energy agency, but experts say its impact is yet to be seen.
Political uncertainty has increased following the 2024 provincial elections. In Gauteng, the ANC was forced into fragile coalitions with smaller parties, which has made it difficult to pass social and budgetary legislation. Key youth welfare programmes have been suspended due to budget constraints.
Egypt’s economy remains under strain. The International Monetary Fund has urged the government to gradually phase out bread and fuel subsidies. This comes amid further currency depreciation in February, pushing inflation to 32.7%, according to the Central Bank of Egypt.
Crackdowns on activists and journalists have increased as economic pressures mount. Over 1,000 arbitrary detentions have been reported since 2023, according to rights groups. Egypt now ranks 168 out of 180 in the 2025 World Press Freedom Index.
Algeria’s foreign reserves have dropped from $62 billion in 2022 to under $42 billion by March 2025. The country remains heavily dependent on oil and gas exports, while the agricultural sector struggles due to fertiliser shortages and climate-related disruptions.
In Morocco, although sectors like renewable energy and tourism have shown resilience, protests by teachers and students have intensified in rural regions. Government figures show that over 30% of schools in these areas still lack reliable access to clean water.
In Ethiopia, while a ceasefire with the Tigray People’s Liberation Front (TPLF) remains in place, violence continues in Amhara and Oromia. Defence spending remains high—over 6% of GDP—while health and education continue to be underfunded. The government has relied on high-interest commercial loans, raising concerns about debt sustainability.
According to the World Bank, agricultural productivity remains well below the African average. Around 70% of farmers lack access to modern fertilisers, and only 12% of cultivable land is irrigated. Many young people are migrating to urban areas, where employment remains scarce.
In Kenya, a corruption scandal involving $48 million in health sector procurement has sparked nationwide outrage. President William Ruto pledged accountability, but no senior officials have been prosecuted, deepening public distrust in the judiciary.
Rising fuel and food prices have triggered protests, particularly after the cost of maize jumped by 21% in Q1 2025. At least nine people were killed during April demonstrations, prompting international concern about Kenya’s democratic trajectory.
Angola recorded 3.9% GDP growth in 2024, driven by non-oil sectors such as agriculture and construction. However, the National Statistics Institute estimates that around 65% of the population still lacks regular access to piped water. Inflation fell from 24% to 17.3% over the year, but living costs remain high in urban centres.
The World Bank, in a February 2025 report, warned that Angola’s fiscal reforms are being hampered by a weak tax base and limited revenue collection outside the oil sector. Small and medium enterprises still struggle to access credit, despite the establishment of a government-backed guarantee fund.
In Ghana, confidence in the government has been shaken following missed targets under the country’s IMF programme. Debt servicing now consumes nearly 45% of state revenues. In March 2025, more than 300 public schools temporarily shut down due to interruptions in the national school meals programme.
Tanzania’s economy continues to grow at 5.5%, but inequalities between urban centres like Dar es Salaam and inland rural areas are widening. While China-backed infrastructure investments are progressing, many small farmers remain disconnected from formal markets. New laws restricting online criticism of the government have also raised concerns about freedom of expression.
Despite impressive macroeconomic figures, many of Africa’s leading economies have yet to translate growth into broad-based development. Experts point to weak governance, limited public service delivery, and institutional fragility as key barriers.
Long-term stability, analysts argue, will require sustained investment in human capital, industrial diversification, and better governance. Overreliance on raw commodity exports and external debt has made these economies vulnerable to global shocks.
Structural issues in education, healthcare, and infrastructure remain largely unresolved. At the same time, political fragmentation and corruption cycles continue to undermine public confidence in leadership across the continent.
Africa’s future will not be shaped by GDP growth alone. Its success will depend on whether its largest economies can create inclusive, resilient systems that put people at the centre of policymaking. Without that shift, growth will remain uneven—and unsustainable.
