A new Africa Prosperity Rating (APR) by the Institute for Management Development World Competitiveness Center (WCC) paints a detailed picture of the continent’s economic performance, highlighting both leading economies and countries facing significant challenges.
The 2025 report evaluates all 54 African nations across four key areas, economic challenges, governance and institutions, managerial dynamics, and societal empowerment, using 80 indicators. Rankings are organised into eight tiers, from A1 (highest) to D2 (lowest).
At the top, Mauritius, Seychelles, and South Africa (SA) lead the continent, earning A1 ratings. Mauritius benefits from near-universal financial access and deep capital markets; Seychelles has the continent’s highest Human Development Index (HDI) at 0.802; and SA maintains strong financial sophistication, with stock market capitalisation at 289% of gross domestic product (GDP) despite governance weaknesses.
Other high performers, in the A2 tier, include Botswana, Cabo Verde, Egypt, Kenya, Namibia, and Tunisia, supported by solid institutional frameworks and investments in education. Namibia, for example, dedicates nearly 10% of GDP to schooling.
However, the report warns of a widening gap between prosperous countries and those lagging behind. Resource-dependent economies remain vulnerable to commodity price swings, with oil still representing 36% of Africa’s exports. In 2023, merchandise trade contracted by 6.3%, wiping out $100 billion in value.
At the bottom of the ranking, Chad, Somalia, South Sudan, and Sudan occupy the D2 tier, grappling with conflict, institutional collapse, extreme poverty, HDI scores below 0.40, limited internet access, and fiscal strain.
Education and health remain critical concerns. Many sub-Saharan countries face teacher shortages, with nearly 60% of adolescents aged 15–17 out of school. Gender inequality persists, with women’s labour participation at 56% compared to 73% for men. Health systems operate at roughly 49% of capacity, while environmental hazards such as air pollution caused 1.1 million deaths in 2019 and significant cognitive losses among children.
The APR highlights four decisive drivers of prosperity: governance quality, economic diversification, societal empowerment, and macroeconomic stability. It points to Africa’s young population as a key asset, urging investments in education, digital infrastructure, and inclusive growth to harness a demographic dividend.
The report also stresses the potential of initiatives such as the African Continental Free Trade Area, calling for reforms to tackle corruption, strengthen institutions, and increase resilience to climate and geopolitical shocks.
Unlike traditional GDP-focused measures, the APR provides a multidimensional view of competitiveness, allowing policymakers to identify structural weaknesses and benchmark performance effectively. The WCC plans to expand this approach next year with a similar assessment for Latin American economies.
Ultimately, the report presents Africa as a continent of contrasts, with pockets of progress alongside widespread fragility. Turning growth into inclusive and sustainable development is key to realising its full potential.
–ChannelAfrica/IMD–
