- Angola, and Ethiopia are projected to overtake Kenya as the third and fourth largest economies in sub-Saharan Africa, respectively, according to the International Monetary Fund (IMF).
- Kenya's slower GDP growth, caused by factors such as the Covid-19 pandemic, drought, and disruptions in global supply chains, contributes to its potential fall in economic rankings.
- The decline in Kenya's economic standing may weaken its ability to attract foreign direct investment (FDI), which is crucial for addressing the continent's high youth unemployment rates.
The International Monetary Fund (IMF) has recently projected that the economies of Ethiopia and Angola are set to overtake Kenya in terms of size, potentially weakening Kenya's ability to attract investors with its growing consumer market.
According to the IMF, faster GDP growth in Angola and Ethiopia will see Kenya relegated to the fifth spot in sub-Saharan Africa's economic rankings. Nigeria is projected to remain the largest economy on the continent, while Angola's return to growth, linked to higher oil prices, saw the country overtake Kenya last year, ending years of recession.
On the other hand, Ethiopia is set to replace Kenya in fourth position this year, driven by the easing of armed conflict in the country and the continuation of ambitious economic reform efforts aimed at opening up one of Africa's fastest-growing but most closed economies.