The Independent Communications Authority of South Africa (Icasa) will hopefully present a solution to the legal dispute over precious cellular network capacity by the end of the day.
This is according to Telkom CEO Sipho Maseko, who spoke to SABC News about the meeting Icasa called with South Africa’s major mobile network operators.
MyBroadband also spoke to an industry source with knowledge of what was discussed at the meeting. They said that Icasa committed to issuing a notice on Wednesday or Thursday this week.
Vodacom, MTN, Telkom, Cell C, Rain, and Liquid Intelligent Technologies met with Icasa on Monday afternoon to discuss the regulator’s decision to claw back radio frequency spectrum assigned at the start of South Africa’s Covid–19 epidemic.
Spectrum represents raw network capacity and is the lifeblood of mobile operators like Vodacom, MTN, Telkom, Cell C, and Rain.
Icasa assigned the spectrum on an emergency, temporary basis under the National State of Disaster regulations for the Covid–19 pandemic.
It said that the temporary spectrum would be valid for three months or would expire three months after the State of Disaster ended — whichever came first.
After extending the temporary assignments every quarter, Icasa issued a notice at the end of August informing the networks that they must return the spectrum on 30 November.
This led to an outcry, with MTN and Telkom warning that Icasa’s decision would have catastrophic consequences on South African end-users.
Willington Ngwepe, Icasa CEO
Together with other operators, MTN and Telkom explained that data traffic on their network remains much higher than their pre-pandemic levels.
They argued that revoking the temporary spectrum would cause significant network congestion and could even lead to price increases when South Africa could ill-afford it.
The two operators ultimately filed papers in the Pretoria High Court to block Icasa from taking back the temporary spectrum.
To de-escalate the situation, Icasa CEO Willington Ngwepe sent letters to Vodacom, MTN, Telkom, Cell C, Liquid Intelligent Technologies, and Rain, inviting them to an online meeting on Monday at 14:00.
Icasa has proposed an amendment to the current Covid–19 regulations that radio frequency spectrum issued on an emergency basis be re-issued under a new “provisional assignment” scheme.
The new applications will cover the 700MHz, 800MHz, 2300MHz, 2600MHz and 3500MHz spectrum bands.
Icasa’s proposal is in-line with communications minister Khumbudzo Ntshavheni’s comments in October that government was considering “interim” spectrum assignments to bridge the gap between the end of November and March next year.
March 2022 is a significant date because that’s when Icasa hopes to have concluded an auction and licensing for the sought-after spectrum.
According to MyBroadband’s source, the meeting with Icasa was not a consultation.
The regulator was simply informing South Africa’s wireless carriers what to expect in the coming week.
It is unclear precisely what regulatory process Icasa would follow, but in essence, it will ask operators to give back the temporary spectrum and reapply for frequencies to tide them over until March next year.
While the spectrum auction is scheduled to happen in March 2022, it is worth noting that industry insiders believe the deadline is unrealistic and is setting Icasa up for failure.
It is hoped that Icasa’s proposed solution will consider the scenario that the spectrum auction needs to be delayed.
Our source said that Icasa did not give much attention to the spectrum auction during its discussion with operators on Monday.
This caused concerns that Icasa will repeat many of the same mistakes it made with its previous attempt to auction the spectrum.
MyBroadband contacted Rain, MTN, and Liquid for feedback, and they said that they could not comment on the meeting with Icasa at this time.
Vodacom said it would provide feedback as soon as it could.
“We are supportive of ICASA proposing an out of court remedy,” said Rain CEO Brandon Leigh.
“Unfortunately, I can’t comment further at this stage.”
Liquid said that the meeting was held on a confidential basis and, as such, it would be inappropriate to comment or report on the discussions.
“It was held in a collegial atmosphere with a focus on finding solutions.”
, a Pan-African telecommunications services provider, has announced the new appointment of Tejpal Bedi to the role of Managing Director (MD) and Regional Head of Sales for the ENEA region, effective from 1 November 2021.
According to a statement from the firm, Tejpal Bedi joins SEACOM with a wealth of experience in leading and driving high performing organisations within the telecommunications and ICT sectors in East Africa. Before joining SEACOM, he was MD of CloudSmiths East Africa, a position he has held since 2015.
Prior to this, he held the position of MD for Internet Solutions East Africa where he transformed (Iconnect) into a global player in the industry, and also founded the training and consulting company, Cambridge Africa, which is the IBM training partner across seven African countries.
Bedi has a degree in Business Studies from the University of Wales, UK, and an MBA from the University of Leicester, UK. He also serves as a Director at TESPOK, the body that manages the Kenya Internet Exchange Point and the voice of the Kenyan telecommunication industry.
Bedi is also the past Chairman and Founder of Kenya IT and Outsourcing Service (KITOS), providing policy and direction within the IT-enabled services industry and government.
Commenting on the new appointment, Chief Sales and Marketing Officer at SEACOM Group, Steve Briggs, said, “We are delighted to welcome Tejpal Bedi on board. We have every confidence that his wealth of experience will enable us to drive growth in the region, and help us to better serve our wholesale and enterprise clients in this key region. This is an exciting time for Tejpal and the SEACOM Kenya team as a whole.”
Vodafone on Wednesday reorganised the ownership structure of its African operations with a multi-billion-dollar deal.
Its South African unit, Vodacom, has agreed to acquire a 55 percent stake in Vodafone Egypt. It will fund the ZAR41 billion ($2.71 billion) deal with ZAR8.2 billion in cash and by issuing 242 million new shares priced at ZAR135.75 each. The deal will increase Vodafone’s stake in Vodacom to 65.1 percent from 60.5 percent.
Vodafone said in a regulatory filing that the reorganisation will simplify the management of its African holdings. It also said that it diversifies Vodacom’s portfolio, giving it exposure to an exciting growth market; meanwhile, Vodafone Egypt will be able to accelerate its growth in the financial services and IoT markets thanks to closer ties to Vodacom.
“Vodafone Egypt is ideally positioned to capture growth in a burgeoning ICT market, which means the proposed acquisition provides our shareholders with an exciting revenue and profitability diversification opportunity and the potential to accelerate the group’s medium-term operating profit growth potential into double digits,” said Vodacom CEO Shameel Joosub, in a statement.
According to Vodacom, Vodafone Egypt currently as 43 million consumer and enterprise customers, and a revenue market share of 43 percent. Its Vodafone Cash service is also the clear leader in the mobile-wallet market, capturing a 90 percent share of transactions as of August, according to Egypt’s telco regulator.
Joosub also pointed out that the acquisition increases Vodacom’s population coverage to more than half a billion people, and more than 40 percent of Africa’s GDP. “We intend to provide an update on our medium-term targets at our full year results, which will be reported in May 2022,” he said.
The deal marks a considerable change of direction for Vodafone. Last year it was on the cusp of selling Vodafone Egypt to Saudi Telecom Company (STC), in line with group CEO Nick Read’s portfolio optimisation strategy. Vodafone decreed in early 2020 that Egypt was no longer a good fit for the business, and so it struck a $2.4 billion deal to sell its 55 percent stake to STC.
The pandemic delayed the due diligence process by a few months but even so, Vodafone insisted in September last year that the sale was still on. Then in December, with very little fanfare and not much explanation, Vodafone abruptly announced the deal was off. With Wednesday’s deal to fold its 55 percent Vodafone Egypt stake into Vodacom, the assets will become assimilated more closely at group level, and therefore potentially harder to hive off and sell in future.
Meanwhile in a separate announcement, Vodacom also agreed to contribute its fibre assets into a new joint venture with Community Investment Ventures Holdings (CIVH). CIVH owns and operates telco networks via its wholesale FTTP unit Vumatel, and its metro dark fibre subsidiary, Dark Fibre Africa (DFA). Vumatel’s network passes 1.2 million homes in South Africa, while DFA boast 13,000 km of metro dark fibre.
Under the deal, which is subject to regulatory approval, these assets will be combined with Vodacom’s business and consumer FTTP networks, and its B2B fibre transmission network to form a new entity called InfraCo. Those Vodacom assets, valued at ZAR4.2 billion ($278 million), together with a ZAR6 billion cash payment, will give the operator a 30 percent equity stake in InfraCo, with CIVH holding the remaining 70 percent. The agreement also gives Vodacom the option to increase its holding by 10 percent.
The result is that Vodacom and CIVH will each benefit from a larger fibre footprint and extra financial clout to invest in expanding coverage and capacity.
“Our agreement with CIVH aligns with Vodacom Group’s strategy to build high quality and resilient fixed and mobile networks with and through selected strategic partnerships across the African continent. It also supports Vodacom’s purpose-driven plan to assist the government in rebuilding the economy post-Covid,” said Joosub, in a separate statement.
The deal needs to be waved through by the competition authorities and the Independent Communications Authority of South Africa. In the meantime we’ll keep an eye out for rivals Telkom and MTN’s reaction to the idea that Vodacom’s share of the fibre market could soon get considerably larger.
Tags: Egypt, M&A, South Africa, Vodacom, vodafone
Vodacom Group will acquire a co-controlling interest, along with Remgro and New GX Capital, in a new entity made up of assets including Vumatel and Dark Fibre Africa.
On completion of the transaction, Vodacom will hold a 30% equity interest in a newly formed entity, provisionally called InfraCo, that will house the DFA and Vumatel assets as well as certain fibre assets that Vodacom will contribute into the new business.
DFA and Vumatel parent CIVH will hold a 70% co-controlling interest in InfraCo and existing CIVH investors including Remgro and New GX Investments will remain invested in CIVH.
Vumatel is South Africa’s largest fibre-to-the-home (FTTH) network operator, while Dark Fibre Africa provides fibre services in and between the country’s towns and cities.
Vodacom’s FTTH and fibre-to-the-business (FTTB) assets will be contributed into InfraCo. These assets will be open access in keeping with the Vumatel and DFA’s business models.
“We expect that Vodacom’s investment will accelerate South Africa’s fibre reach, network quality and resilience, fostering economic development and help bridge South Africa’s digital divide in some of the most vulnerable parts of our society,” Vodacom said in a statement to shareholders.
“Through Vodacom’s investment, InfraCo would accelerate and expand its lower and middle-income product offering to deliver affordable high-speed broadband access to a broader population segment, including small and medium sized enterprises.”
Vodacom explained that the transaction is structured into a number of steps, all of which would occur at completion upon receipt of regulatory approvals.
“This will result in Vodacom obtaining a 30% shareholding in InfraCo, where Vodacom will jointly control InfraCo alongside CIVH, which will hold the remaining 70% shareholding,” it said.
Step 1: CIVH will transfer all of its material assets and operations, including Vumatel and DFA, into a newly created entity, InfraCo.
Step 2: Vodacom will subscribe for new shares in InfraCo in return for R6-billion in cash.
Step 3: Vodacom will contribute its FTTH, FTTB and business-to-business transmission access fibre network infrastructure to the InfraCo, at a valuation of R4.2-billion, in return for new shares in InfraCo.
Step 4: Vodacom will acquire further (secondary) shares from CIVH sufficient to increase its shareholding to at least 30% in InfraCo at a pre-agreed formula.
“The value of the secondary purchase as outlined in step 4 is a function of the valuation of InfraCo as described and so cannot be pre-calculated with certainty. Based on Vodacom’s current expectations, including the date of closing and the InfraCo valuation, the secondary purchase is estimated to be approximately R3-billion. This would imply that the total purchase price paid by Vodacom, including the value of the transfer assets, equates to R13.2-billion.”
Vodacom also has an option, which is exercisable for 180 days following the transaction’s implementation, to acquire an additional 10% stake in InfraCo to increase its shareholding to 40% at the same implied valuation.
The transaction must not result in CIVH holding less than 50.1% of the InfraCo ordinary shares.
The proposed deal must also be approved by the Competition Commission, which could prove to be tricky, and by communications regulator Icasa.
For the year ended 31 March 2021, CIVH reported net assets of R8.7-billion and an attributable loss to shareholders of R1.1-billion.
Source: Tech Central
Demonstrators take part in a rally in Addis Ababa, Ethiopia, on November 7, 2021, in support of the national defense forces. Image sourced from Eduardo Soteras, AFP via Business Daily Africa.
East Africa’s leading telecom company Safaricom has reportedly evacuated some of its employees from Ethiopia, fearing disruption to its operations due to the ongoing armed conflict and civil unrest in the horn of Africa country. The firm evacuated employees from the country on Wednesday and Friday.
Safaricom is part of a larger consortium that is aiming to start operations in Ethiopia sometime next year, after months of negotations with the Ethiopian government. The Safaricom consortium was awarded an operating license in the country by the government for an initial period of 15 years.
A number of nations, including the US, Denmark and Italy have asked their citizens to leave the Ethiopia region while commercial flights are still available, according to Business Daily Africa.
“All our staff are safe. A number have been evacuated from Ethiopia on a temporary basis whilst we assess the situation,” said a top official at Safaricom, who remained anonymous. Separate reports indicate that the evacuated Safaricom staff were taken to Nairobi via commercial flights in batches.
“They were evacuated on Wednesday and others on Friday last week,” another source, based in Addis Ababa, told Business Daily. Safaricom has installed staff in Ethiopia to run its operations in the country for products and network development, with the telco hoping to gain some of the market share currently being hoarded by state-owned monopoly Ethio Telecom.
The conflict in the country, which was at one point was expected to quickly be resolved, has only escalated in recent months, and armed forces from the Tigray People’s Liberation Front (TPLF) and its allies, called ‘rebels’ by the Ethiopian government, are currently advancing upon the capital city, Addis Ababa.
Despite calls for ceasefires and peace talks from African nations, including neighbour Kenya, as well as Western states and the UN Security Council, Prime Minister Abiy Ahmed’s government has promised to keep fighting. In a now-deleted Facebook post, Ahmed called on all citizens in the capital to fight for their homes and neighbourhoods against the TPLF.
Thousands have been killed and more than two million more have been displaced from their homes, while 400,000 people in Tigray are now facing famine due to the conflict. The war is also destabilising Ethiopia, the second-most populous country in Africa seen by major companies across the continent as fallow ground for investments.
MTN doubles down in Nigeria despite costly previous experiences in Africa’s most populous country
MTN is now on track to operate its mobile money platform in Nigeria, with the company having long-term ambitions of using its network and infrastructure to ultimately launch a full suite of banking services.
Over the past five years, MTN has had a love-hate relationship with Nigeria and its admonishing regulators.
In 2016, MTN paid a $1.6-billion fine (reduced from an initial $5.2-billion) for failing to disconnect about 5.1 million mobile subscribers as Nigerian authorities were cracking down on unregistered SIM cards in the country that could be used for nefarious purposes such as terrorist activity.
In 2020, MTN settled a long-standing tax dispute with Nigerian authorities relating to dividend repatriation in breach of foreign exchange rules, agreeing to pay a $53-million fine.
Nigerian authorities were accused of unfairly shaking down foreign companies and seeking to extract cash from them because the country’s oil-reliant economy was in the doldrums due to falling oil prices.
MTN could have exited Nigeria because of its agonies in the country but the telecommunications giant didn’t – opting to double down on its presence in the country. After all, exiting Nigeria won’t be easy for MTN as it is a big and lucrative market for the telecommunications giant, generating more than 30% of its revenues from its 68 million subscribers in the country.
MTN is now on track to operate its mobile money platform in Nigeria, with the company having long-term ambitions of using its network and infrastructure to launch a full suite of banking services — including cash transfers, taking deposits, offering insurance cover, and term loans to consumers. MTN would ultimately become a de facto bank.
On Friday, 5 November, MTN received a provisional licence to operate its mobile money platform in Nigeria. This is the first and crucial step of many to come in helping MTN to be a fintech player in Africa’s most populous country.
To launch a full suite of banking services (including lending to consumers), MTN requires a final licence. Fintech or financial technology services include person-to-person money transfers, insurance services, bill payments and airtime top-ups. Market watchers believe that a final licence would be a game changer for MTN.
Karl Gevers of Benguela Global Fund Managers said: “Nigeria has a huge user base and a big portion of its population is unbanked [consumers who don’t have access to formal banking facilities]. There are big opportunities in the fintech space for MTN in Nigeria. That’s why there is some excitement about MTN expanding more services to Nigeria.”
Since the announcement on Friday about MTN receiving a provisional licence, the company’s share price has been up by nearly 2%, adding R4.7-billion to its market value on the JSE.
It is unclear what the terms and conditions will involve for MTN to be awarded a final licence by Nigerian regulators. Peter Takaendesa, a senior portfolio manager at Mergence Investment Managers, suspects that there will be a local ownership requirement to MTN Nigeria, an MTN Group subsidiary. This would be equivalent to indigenisation requirements.
MTN Group has begun the work to localise a portion of ownership, as it plans to sell a 14% stake of MTN Nigeria, or 575 million shares, reducing its ownership of the subsidiary to below 90%. It is expected that MTN will raise about R4-billion from this sale.
Takaendesa told Business Maverick that the share sale might be a move by MTN to appease Nigerian authorities and improve its local ownership to pave the way for the approval of its final licence.
In SA, mobile money transfers or banking-like services haven’t been a resounding success, because a large portion of the population has access to banking facilities. But in Kenya, Tanzania, Mozambique, Lesotho, Ghana, and the Democratic Republic of Congo, Vodacom and Safaricom have had success with M-Pesa. Consumers in these markers don’t have much access to formal banking facilities.
MTN has a goal of generating about 20% of its group revenue from fintech services, from the current 8%. MTN already offers fintech services in Uganda and Ghana through its mobile money offering MoMo. MTN has nearly 50 million customers in both countries and plans to double this number over the next five years.
Tie-up with Telkom?
While MTN’s focus is on growing in Nigeria, it is not planning to neglect its South African home market. It reportedly has big growth ambitions in the country. According to Bloomberg, MTN was in talks to buy its smaller rival Telkom.
Telkom has so far shown no interest in a sale, while MTN has denied reports of a possible tie-up with Telkom.
Mergence’s Takaendesa and Benguela’s Gevers see, in theory, the merits of an MTN and Telkom tie-up, with the former hoping to take advantage of the latter’s growing mobile subscriber base and strong infrastructure of cellphone towers across South Africa. This would put MTN in good stead because Telkom, along with other mobile operators, plans to bid for more radio frequency spectrum.
“MTN might want Telkom’s fibre capacity to accommodate its growing mobile traffic base,” said Takaendesa.
But the complication would be to get the MTN-Telkom possible deal approved by competition authorities. The authorities might see the merger as bad for competition as it would result in the number of mobile operators in SA reducing, in theory, from four to three.
However, in reality, the number of mobile operators would be reduced to two as it is a competition between two giants, MTN and Vodacom. DM/BM
The company that owns Facebook, Instagram and WhatsApp is now called Meta, ostensibly to signal a pivot towards augmented and virtual reality.
The artist formerly known as Facebook has been banging on about the ‘metaverse’ for a while now, a term seems to describe a utopia/dystopia in which all our external interactions are informed by some kind of digital overlay that will somehow improve reality. The most acute among you may already be forming a suspicion about which company will provide, manage and monetize this platform.
“I’m proud of what we’ve built so far, and excited about what comes next – as we move beyond what’s possible today, beyond the constraints of screens, beyond the limits of distance and physics -and towards a future where everyone can be present with each other, create new opportunities, and experience new things,” said Facebook founder and Meta boss Mark Zuckerberg.
“With all the scrutiny and public debate, some of you might be wondering why we’re doing this right now. The answer is that I believe that we’re put on this earth to create. I believe that technology can make our lives better. And I believe the future won’t be built on its own.”
Zuck is, of course, referring to all the aggro Facebook (which is what everyone is still going to call his company) is having to put up with thanks its superstar ‘whistleblower’. But of far great consequence to everyone except those who seek to influence its censorship policies in their favour is the company’s recent outage, which paralysed everyone who depends on its services. Surely that alone is reason enough to hesitate before immersing yourself even further into the proposed metaverse.
It is to Facebook’s credit that it hasn’t allowed external events to influence its core strategic direction, especially since this vision will only add fuel to the moral panic around the company. In fact, it could be argued that the timing of this corporate rebrand is perfect, since the Facebook brand is tarnished for a number of reasons. Whether it will help, however, remains far from certain judging by much of the social media reaction.
Chinese telecoms vendor Huawei’s latest quarterly numbers reveal another big fall in revenues, thanks mainly to its crippled consumer division.
While we should perhaps be grateful that privately-owned Huawei chooses to share any numbers with us, we still regret how sparing they are. All we get these days is just the two datapoints: that revenue for the first three quarter combined was CNY455.8 billion and its net profit margin was 10.2%. The revenue figure is down 32% year-on-year but the margin is slightly improved. Light Reading has done the maths for the Q3-only numbers.
“Overall performance was in line with forecast,” said Guo Ping, Huawei’s Rotating Chairman. “While our B2C business has been significantly impacted, our B2B businesses remain stable. Through our ongoing commitment to innovation, R&D, and talent acquisition, and rigorous attention to operating efficiency, we are confident we will continue to create practical value for our customers and the communities in which we work.”
A look at the latest numbers below (derived from Counterpoint) reveals Huawei’s smartphone business is still in a tailspin that will see it all but eradicated by the end of the year if the trend continues. Counterpoint’s numbers even for Huawei’s domestic market are little better, with the chip embargo and Android restrictions decimating its share of that market. It can derive some small consolation from the apparent success of its move to spare Honor from the same fate.
With the global semiconductor shortage showing no sign of letting up, nor sparing anyone its ravages, Huawei might reflect that there are worse times to be out of the devices market. Networking equipment needs chips too, though, and Huawei’s stockpiles can’t be infinite. There doesn’t seem to be too much decline left on the consumer side for Huawei, so if overall revenues keep declining at this rate we will have to assume the networking business is the cause.
Pan-African telecommunications services provider SEACOM has announced that it has completed the 100% acquisition of Hirani Telecom’s metro fibre network. Hirani Telecom is one of Kenya’s fastest-growing triple-play service providers, and the largest last-mile provider in the region.
The network will be incorporated into SEACOM’s existing metro network in the capital of Kenya, Nairobi and will be under its full control.
According to a release, the acquisition is part of SEACOM’s ongoing strategy in the region to grow its on-net capabilities, and provide its enterprise customers with world-class connectivity.
Steve Briggs, SEACOM CSMO, expands on what the acquisition will mean for the region: “This is a first step towards ensuring we can provide end-to-end solutions for our customers across the region. We will be able to offer more competitive services, bring new, innovative solutions to market faster, and guarantee the highest quality of connectivity and service delivery.”
SEACOM has announced that it has completed the 100% acquisition of Hirani Telecom’s metro fibre network. Hirani Telecom is one of Kenya’s fastest-growing triple-play service providers, and the largest last-mile provider in the region.
“The acquisition of Hirani’s metro fibre network dramatically boosts SEACOM’s operations and sets the stage for the expansion of our business services in the region. The world is rapidly changing, and customers need the service, quality, and availability that SEACOM is known for providing.”
Hirani Telecom owns two purpose-built, carrier-neutral national metro networks. The first is used to service its home users with Internet and content, and this will be retained by Hirani, which will continue operations as usual.
The second network, which is being acquired by SEACOM, will be dedicated solely to SEACOM’s enterprise customers. There will be no disruption or customer migration, as customers are already running on this network.
“SEACOM Kenya has been using Hirani’s metro network to provide last-mile services to our enterprise customers. As the only provider on this network, it was a natural progression for us to buy the network and cut out the middle man. This will give us a competitive advantage in the market and will enable us to offer our customers better services, and tailored solutions,” explains SEACOM’s Group CEO, Oliver Fortuin.
“We already connect Kenya to the rest of the world, and now our Nairobi customers will be able to connect directly to the source. The expansion will also open up new markets for us.”
Luis Monzon –
Spanning 54 countries, Africa is a powerhouse in the world of natural resources and innovation. Resources like diamonds, sugar, gold, uranium, silver, oil, and petroleum famously make Africa and investments in Africa very lucrative.
Oil being an invaluable commodity, its production puts countries like Nigeria and Egypt at the top in terms of Gross Domestic Product (GDP).
Despite the social and political issues the continent faces, there’s no doubt that it’s on track to see an abundance of opportunities to grow in the coming years.
This marks the third time IT News Africa has compiled a list ranking Africa’s top 10 largest economies by GDP – in 2018, 2020, and now in 2021. In those three years, there have been certain changes to the top economies in Africa but the first place and the second and third places remain with three notable countries.
Here are the top 10 wealthiest countries in Africa ranked by their GDP in 2021:
10. Angola – $66.49-billion
Angola drops to 10th place from 7th place in 2020.
Since the end of the Angolan Civil War in 2002, the country has been making strides into political and structural reforms to help stabilise its economy which is mostly built on oil. More than a third of its GDP in 2020, and 90% of its export revenues that same year were derived from crude oil sales.
Believed to be a contender for significant economic growth in Africa, its latest efforts have been disappointing. Its GDP shrunk from $91,527-billion last year to $66.49-billion in 2021.
However recent news indicates that the country may be finally exiting a multi-year recession.
9. Cote d’Iviore – $70.99-billion
For the first time ever, the Ivory Coast is considered one of the ten wealthiest countries in Africa according to GDP, having joined the list at number 9.
The country’s services, industry and agriculture sectors are considered its strongest and make up for most of the country’s steady growth even after facing two civil wars in the last 20 years.
8. Ghana – $74.26-billion
Ghana is one of Africa’s dark horses in terms of economies and has quietly solidified its efforts in growing its GDP from $67,077-billion to $74.26-billion in 2021, moving up a spot on the list.
Ghana mainly exports resources such as cocoa, crude oil, gold and timber. The country experienced an economic expansion of 6.7% in the 1st quarter of 2019, with non-oil growth at 6%.
Last year, Ghana was put to the test amidst growing concern for its energy sector due to high costs and natural gas supply but has managed to navigate the COVID-19 pandemic and other challenges positively.
7. Ethiopia – $93.97-billion
Ethiopia takes Angola’s place from last year’s list as the latter fell to the bottom of Africa’s wealthiest countries ranked by GDP.
Lately, the Ethiopian government has opened up its famously hard-fastened economy to international investors through deals in Ethio Telecom and other state-owned entities.
However, the country’s government and its Prime Minister have come under international scrutiny as of late after perceived inaction in the face of alleged war crimes being conducted in the Tigray region of the country.
6. Kenya – $106.04-billion
Considered one of Africa’s fastest-growing economies, Kenya maintains its spot on the list from last year after being battered by the COVID-19 pandemic, which cost the country over 700,000 jobs and forced it into its first economic recession since 1992.
Recent investments and focuses have helped Kenya’s economy in recent years and have solidified it as one of Africa’s futurist states, but the country is still heavily dependant on its agriculture sector to keep it afloat.
Its agriculture (approximately 35% of GDP) includes the rearing of coffee, tea and corn, while the rest of the GDP is funnelled in through its industrial sector.
5. Morocco – $124-billion
Morocco remains unmoved since last year’s list, maintaining the middle ground amongst Africa’s wealthiest countries.
Most of Morocco’s GDP is derived from its robust service sector, followed by its industry and then its agriculture.
4. Algeria – $151.46-billion
Maintaining its place from last year’s list is Algeria. The majority of the North African country’s GDP, more than 70%, is generated through its hydrocarbons industry.
By sector, commercial services, industrial, construction and public works, and agriculture sectors continue to drive non-hydrocarbon growth. However recent hostilities with Morocco and France, including the closing of a lucrative gas pipeline, could affect its economy over the next year.
3. South Africa – $329.53-billion
South Africa lost its spot as Africa’s second wealthiest country in terms of GDP, now moving to third on the list.
In 2020, South Africa went into a recession after 2 consecutive quarters of negative GDP growth. Its economy was battered by the COVID-19 pandemic and subsequent lockdowns, and constant power outages from ageing operations at its main power producer, Eskom, has been noted to be a contributor to its shrinking economy which was once the leader on the continent.
2. Egypt – $394.28-billion
Egypt becomes Africa’s second wealthiest state according to GDP in 2021, beating out South Africa from the lauded number two spot.
By sector, gas extractives, tourism, wholesale and retail trade, real estate and construction have been the main drivers of growth for Egypt’s GDP, and together with economic reform programmes and increased levels of employment, the country continues to be a great example of an African powerhouse nation.
1. Nigeria – $514.05-billion
Nigeria has been Africa’s wealthiest and largest economy in terms of GDP since we first marked their leadership in the continent in 2019. The country managed to increase its GDP from $446,543-billion to $514.04-billion even amid the challenges of the COVID-19 pandemic.
Nigeria is Africa’s largest crude oil supplier, and also one of the continent’s richest agricultural sectors. A leader in Africa in terms of farm output, Nigeria’s main agricultural exports are cocoa, peanuts, rubber, and palm oil.
Almost 10% of Nigeria’s GDP is generated by its oil and petroleum industry.
Sourced from Statista.com.