Morocco is among the 10 richest nations in Africa according to the World Bank and has kept its fifth position as the continent’s largest economic nation in terms of GDP after, Nigeria, South Africa, Egypt and Algeria. The Kingdom is ahead of Angola, Kenya, Ethiopia, Tanzania and Ghana in this Continental Top 10.
Africa with 30% of the world’s mineral resources is resolutely the richest continent in the world. The continent has a large amount of cobalt, diamonds, folds, natural gas, uranium, silver, bauxite, iron, phosphates, cocoa beans, sugar, salt, petroleum, tropical fruits, wood, etc. Africa’s economy is made up of the continent’s industry, commerce, agriculture and human resources.
Morocco owes its ranking to its gross domestic product (GDP) of 122.46 billion dollars. The economy of the Kingdom which consists of various activities depends mainly on the export of raw materials tells us the World Bank (WB). The modern sectors, in particular tourism and telecommunications as well as the Moroccan banking and financial sectors are also becoming increasingly important for the Moroccan economy. The modern part accounts for more than two-thirds of the GDP, although it employs only about one-third of the country’s workforce.
The WB emphasizes that His Majesty Mohammed VI had asked the latter two sectors to find solutions to facilitate youth entrepreneurship and open access to finance. The Intelaka initiative was created in February 2020, offering a new generation of guarantees and financing products to young entrepreneurs and very small businesses, reports the world institution.
A $ 625 million trust fund was created to support the initiative in addition to having invested more in the Moroccan auto industry. Due to the COVID-19 pandemic, King Mohammed VI has ordered the creation of a billion dollar fund to modernize health infrastructure, assist economic sectors in crisis and support vulnerable households.
In addition, the World Bank has revamped a $ 275 million loan for development policy for disaster risk management with a deferred withdrawal option. According to official data from the World Bank and projections from Trading Economics, Morocco’s GDP was estimated at US $ 118.73 billion in 2019. The country’s GDP represents 0.10% of the world economy.
As for Nigeria, the first African economy with a GDP of 447.01 billion dollars, it is the largest producer of oil in Africa and holds the largest reserves of natural gas on the continent and the United States is the ‘one of its main trading partners. According to an Energy Information Administration (EIA) report, in May 2019, Nigeria exported 243,000 barrels of oil per day to the United States and exported on average 7.5 million barrels of crude oil per month from around the world. Oil exports account for 10% of GDP and exceed 80% of export earnings. The country’s GDP represents 0.37% of the world economy.
South Africa’s economy ($ 385.53 billion GDP) remains heavily dependent on mining. In 2019, South Africa experienced a recession after 2 consecutive quarters of negative GDP growth. The only industries that experienced growth in the fourth quarter were financial services, mining and personal services. However, South Africa’s GDP increased by 0.2% in 2019.
Egypt’s economy ($ 298.15 billion GDP) is heavily dependent on the media, agriculture, natural gas, petroleum imports and tourism. The Egyptian government has implemented an economic reform program supported by the International Monetary Fund (IMF) to stabilize the economy and remedy macroeconomic imbalances by liberalizing the exchange rate, fiscal consolidation and reforms in the energy sector. These measures have helped to encourage expansion, achieve a strong primary budget surplus, lower the debt-to-GDP ratio and rebuild foreign exchange reserves. Real GDP growth reached 5.6% in 2019, up 0.3%.
Finally Algeria with a GDP of 200.17 billion dollars is a country eminently exposed to the performances of hydrocarbons, natural gas and petroleum notes the WB. Hydrocarbons account for almost 70% of total GDP. However, in mid-2019, several senior executives in the oil and gas industry were indicted for corruption. This political ambiguity dampened the growth of hydrocarbons, with economic activity contracting by 6.5% in 2018 and by 7.7% in the first quarter of 2019. Algeria’s economy remains highly dependent on its export trade in natural gas and petroleum, raw materials which, regardless of fluctuations in world prices, contribute around one third of the country’s GDP annually.