IMF Predicts South Africa Could Surpass Nigeria as Africa’s Largest Economy

• The International Monetary Fund (IMF) suggests that South Africa may briefly overtake Nigeria as the largest economy in Africa by 2024, with a projected GDP of $401 billion
• This projection is influenced by economic policies implemented by President Bola Ahmed Tinubu, such as removing fuel subsidies and unifying exchange rates, which have drawn criticism

The International Monetary Fund (IMF) has proposed that South Africa might overtake Nigeria to become the largest economy in Africa.

According to the IMF’s World Economic Outlook, South Africa, known for having one of the most robust economies in Africa, is expected to reach a gross domestic product (GDP) of $401 billion by 2024.

The IMF’s calculations suggest that, at current prices, Nigeria and Egypt have GDPs of $395 billion and $358 billion, respectively.

The IMF further projects that South Africa will briefly surpass Nigeria, the most populous African nation, for a year before falling behind again.

The report released last week suggests that South Africa might fall to third place, with Egypt taking the second spot in 2026.

It is worth noting that some policies implemented by President Bola Ahmed Tinubu have added pressure to Nigeria’s struggling economy. Among these policies are removing fuel subsidies and unifying exchange rates at the I&E window.

Many experts have criticized these policies as ill-timed, as no concrete measures were put in place to buffer the impact they would have on the economy.

Although the President has mentioned that the gains of his economic reforms may not be immediately felt, experts and labour unions have criticized some of these policies, labelling them as “anti-people.”

Recently, organized labour had threatened to shut down the economy due to the hardships experienced by Nigerians but opted out at the last minute after meeting with the federal government.