Africa: An overview

return to the list of Cases

Africa is the world’s second-largest continent by both area and population. In common usage, it comprises 55 countries (members of the African Union) and a population of roughly 1.4 billion people. While it is a geographic term, Africa is also treated as a civilizational space with deep cultural, linguistic, and historical diversity.

Brief History

Africa is the cradle of humanity, where our earliest ancestors evolved and first migrated to populate the rest of the world. For millennia, the continent was home to a vast array of societies. These ranged from nomadic hunter-gatherer groups to settled agricultural communities and more complex states.

From the late 1400s, European exploration brought Africa into sustained and often violent contact with Europe. Seeking routes to Asia, Europeans built coastal outposts, fuelling the transatlantic slave trade, which grew far larger and more brutal than earlier African and Arab systems of slavery. Millions were forcibly taken to the Americas, devastating societies, economies, and stability.

After the slave trade’s abolition, Europe turned to Africa’s resources. In the 1884-85 “Scramble for Africa,” European powers divided the continent with no regard for its peoples. Colonial rule exploited land and labour, reshaped economies, enforced segregation, and committed a variety of atrocities. By the mid-1900s, independence movements ended formal colonialism, but many nations inherited unstable borders, political unrest, and economic dependency. These problems still influence the continent today.

Economic Landscape

Africa's economy is small relative to its population, generating less than 5 percent of global GDP in purchasing power parity (ppp) terms, while being home to roughly 18 percent of the world's population. Consequently, its average income per person is less than one-third of the global mean.

The continent's exports consist mainly of raw materials and primary goods, including oil and gas, minerals such as gold, copper, and cobalt, and agricultural products like cocoa and coffee. Its limited industrialization stems partly from its recent independence, as most nations became sovereign only in the mid 1900s. This followed centuries of colonial rule, during which European powers focused on resource extraction for export while investing little in local manufacturing or infrastructure. This historical pattern continues to shape the continent's economic structure.

Largest Countries and Economies

Nigeria, with over 220 million people, is Africa’s most populous country and largest economy. Its economic strength is driven by oil exports, a growing services sector, and agriculture. South Africa, home to about 61 million, has the continent’s second-largest economy, known for its advanced financial sector, significant mining operations—especially in gold and platinum—and a strong industrial base. Egypt, with a population exceeding 110 million, ranks third economically, supported by a diversified base that includes tourism, natural gas, and manufacturing.

With a population of around 45 million, Algeria's economy is dominated by oil and natural gas, which provide the majority of government revenue and foreign exchange earnings. Ethiopia, with approximately 125 million people, has one of Africa’s fastest-growing economies, fueled primarily by agriculture and an expanding industrial sector.

Combined, these five nations have a total population of roughly 561 million, representing about 40% of Africa's total population. Together, they generate more than half of the continent's GDP.

However, in terms of GDP (ppp) per capita, smaller, resource-rich, or politically stable nations like Seychelles, Mauritius, and Botswana lead, often exceeding 15,000 USD. South Africa and Egypt are in the middle range, while populous countries like Nigeria and Ethiopia have much lower figures, reflecting the challenge of distributing national income across very large populations.

Labour Markets

African labour markets are shaped by a young and rapidly expanding workforce. Nigeria and Egypt have the continent’s largest labour forces, while South Africa has a more formalized market but faces persistently high unemployment. In countries like Kenya and Ghana, the formal service and technology sectors are expanding and offering new employment opportunities.

Labour mobility also plays a major role in the continent’s economic landscape. Skilled professionals in fields such as medicine, engineering, and academia often migrate to Europe, North America, and the Middle East, contributing to a significant brain drain. Concurrently, large numbers of lower-skilled workers move both within Africa, usually to destinations like South Africa and Côte d’Ivoire, as well as abroad, particularly to the Middle East for construction and domestic work. This extensive intra-regional migration is driven by economic prospects, conflict, and climate pressures. Remittances from the African diaspora are a critical source of foreign currency and household income, often surpassing foreign aid.

Global Production Networks

Global production networks connect Africa to the world economy primarily through the export of raw materials. The continent is a treasure trove of strategic minerals: the DRC produces over 70% of the world's cobalt; South Africa is a top producer of platinum, manganese, and chromium; and Guinea holds the world's largest bauxite reserves. Nigeria and Angola are major oil exporters, while Botswana is a leading source of gem-quality diamonds. Zambia and the DRC form the "copperbelt," a key region for copper mining.

Beyond minerals, agricultural exports are vital. Côte d'Ivoire and Ghana supply over 60% of the world's cocoa, Ethiopia is the birthplace of coffee, and countries like Kenya are major exporters of tea and flowers. Manufacturing is less integrated globally but is growing, with South Africa's automotive industry, Egypt's textile sector, and Morocco's role in aerospace and automotive supply chains.

Human Development

Human development in Africa has seen significant progress, but it remains the lowest in the world. Island nations like Seychelles and Mauritius, along with North African countries like Algeria and Tunisia, typically have the highest HDI rankings in the continent. In Sub-Saharan Africa, countries like Botswana and South Africa also perform relatively well. Widespread improvements in life expectancy and school enrollment have been achieved, yet deep inequalities persist, particularly for women and rural populations. Political conflict and instability in regions like the Sahel pose major threats to development gains. Poverty remains another critical challenge.

Top-Tier Countries

Within Africa, a group of countries stands out for their economic scale, stability, or strategic importance. South Africa and Egypt possess the continent's most industrialized and diversified economies, with strong financial markets and infrastructure. Nigeria is the continent's demographic and economic giant, and a leader in technology. Kenya serves as the economic and logistical hub for East Africa, while Ghana is recognized for its stable democracy and growing economy. Smaller nations like Mauritius and Botswana are often cited for their strong governance, political stability, and high per-capita incomes. These countries attract the bulk of foreign investment, drive regional trade, and play influential roles in continental diplomacy and security.

Bottom-Tier Countries

Several African countries face severe, overlapping challenges that hinder development. Many are classified as Least Developed Countries (LDCs), a United Nations designation for nations with the lowest indicators of income, human development, and economic resilience.

The vast majority of the world’s LDCs are in Africa, with a high concentration in the Sahel region. Countries there, such as Mali, Niger, and Burkina Faso, grapple with political instability, armed conflict, and severe climate change impacts that worsen food insecurity and disrupt livelihoods. Similarly, the Central African Republic and South Sudan endure prolonged civil strife and humanitarian crises. Somalia and the Democratic Republic of the Congo face chronic insecurity and weak state institutions, despite the DRC’s vast natural resources.

These nations are commonly marked by extreme poverty, low Human Development Index scores, and a heavy dependence on humanitarian aid. Their limited integration into the global economy and structural vulnerabilities leave them highly exposed to both internal unrest and external shocks, making progress toward sustainable development especially difficult.

Largest cities

• Lagos, Nigeria (21m)
• Cairo, Egypt (20m)
• Kinshasa, DRC (17m)
• Luanda, Angola (9m)
• Nairobi, Kenya (5m)

Food & agricultural capitals

• Ghana & Côte d'Ivoire – Cocoa capital of the world 🍫
• Ethiopia – Coffee capital ☕
• Kenya – Tea & Rose capital 🌹
• Madagascar – Vanilla capital 🍦
• South Africa's Cape Winelands – Wine capital 🍷
• Senegal – Peanut capital 🥜

Economic & trade capitals

• Johannesburg, South Africa – Financial & mining capital 💰
• Lagos, Nigeria – Tech & commercial capital 💻
• Nairobi, Kenya – East African tech & finance hub 🇰🇪
• Cairo, Egypt – North African trade & industrial hub 🏭
• Abidjan, Côte d'Ivoire – Francophone West Africa's port & finance hub 🚢
• Addis Ababa, Ethiopia – Diplomatic capital (AU HQ) 🕊️
• Casablanca, Morocco – Atlantic trade gateway ⚓

Video

A brief look into Africa's economic transformation and challenges [30m 49s]

This episode of DW News' Business Beyond explores Africa's economic future, weighing its demographic advantages against significant challenges. While a growing youth population presents a major opportunity, the continent grapples with a large economic gap, low intra-African trade, poor infrastructure, and weak governance. The episode highlights the African Continental Free Trade Area (AfCFTA) as a key initiative for boosting growth and reducing poverty, emphasizing the need for diversified economies, increased investment, and better education to unlock Africa's potential.

Discussion

1. Defining the Region: The text distinguishes between North and Sub-Saharan Africa. How does this common division help or hinder a comprehensive understanding of the continent's challenges and opportunities? Discuss the political and economic implications of initiatives like the African Union that seek to transcend this divide.

2. Divergent Paths: Contrast the characteristics of a "top-tier" country (e.g., Botswana) with a "bottom-tier" country (e.g., Mali) as described in the text. Beyond GDP, what institutional, political, or historical factors might explain the vast divergence in their development paths?

3. Migration as a Double-Edged Sword: Analyze the dual role of labour migration as discussed in the text. How can migration represent both a solution (e.g., remittances, easing domestic unemployment) and a problem (e.g., brain drain, social pressures on host nations) for a country's long-term development?

4. Urbanization and Centralization: The list of largest cities highlights a trend of massive urban concentration (e.g., Lagos, Cairo, Kinshasa). How does this rapid, often unplanned, urbanization relate to the continental challenges of inequality, informal labour, and infrastructure deficits mentioned in the text? What might be the social and environmental consequences?

Critical Thinking

1. Analyze the conceptual boundaries used to define "Africa" in this text. The overview treats Africa simultaneously as a geographical entity, a civilizational space, and a collection of 55 nation-states. What are the implications of conflating these different organizational frameworks? Consider how the text's emphasis on continental unity might obscure meaningful distinctions between regions, cultures, and historical experiences that don't align with modern political boundaries.

2. Examine the text's approach to discussing migration patterns, particularly the characterization of skilled worker emigration as "brain drain." What perspective on human mobility and national development is implicit in this terminology? Analyze whether the text's framework adequately accounts for the benefits that migration might provide to individuals and communities, or whether it primarily reflects the concerns of institutional actors.

Further Investigation

1. Investigate the sociopolitical implications of resource dependence in specific African nations. The text highlights that countries like the DRC, Guinea, and Botswana are major producers of strategic minerals. Research how the extraction of a single, dominant resource can affect a nation's governance, institutional stability, and social cohesion, both positively and negatively. How might the global demand for these resources influence internal politics and long-term economic diversification plans?

2. Research the evolution of the African Union's role in regional and international affairs. The text mentions that Africa comprises 55 countries who are members of the AU. Go beyond this simple fact and investigate the AU’s core objectives, its diplomatic successes, and the internal challenges it faces. How has the AU’s mission to foster continental unity and economic integration evolved over the past few decades, particularly in response to internal conflicts and the growing influence of non-traditional foreign powers?

return to the list of Cases

contact  |  quotes  |  site map

© 2025 Serdar Kaya