5 Small African Countries with Robust Economies 

Africa is a continent with diverse economies and unique economic growth patterns. While larger countries like Nigeria, South Africa, and Egypt often grab headlines, smaller African countries with robust economies are making their mark on the global stage. 

These countries may have smaller populations and landmass, but they have strong economies and unique opportunities for investors. Let’s look at some of them:

Botswana 

With a population of just over 2 million people, Botswana is a landlocked country in Southern Africa. Despite its small size, Botswana has one of the fastest-growing economies on the continent. Botswana is positioned between South Africa, Namibia, Zambia, and Zimbabwe. Previously known as one of the world’s poorest countries at independence in 1966, Botswana grew to become one of the world’s development success stories.

Botswana’s economic success is largely due to its diamond industry, which accounts for a significant portion of the country’s GDP. Also, the government has implemented policies to diversify the economy, with a focus on tourism, manufacturing, and agriculture. As of 2021, it has a GDP (purchasing power parity) per capita of about $18,113, one of the highest in Africa.

Its relatively high gross national income per capita gives the country a relatively high standard of living and the third-highest Human Development Index of continental Sub-Saharan Africa (after Gabon and South Africa). Although Botswana does not have any billionaires yet, it has over 20 rich investors with 31 equity listings and 49 bond listings on the stock exchange market. These multi-millionaires include Abdul Satar Dada, Gulaam Husain Abdoola and Chandrakanth D. Chauhan. 

Mauritius

Mauritius is a small island nation in the Indian Ocean, off the coast of East Africa with a population of just over 1 million people. The country has a highly diversified economy, with key industries including financial services, tourism, and textiles. Since independence from Britain in 1968, Mauritius has grown from a low-income, agriculture-based economy to a high-income diversified economy.

In 2018, The Gross Domestic Product (PPP) was estimated at $29.187 billion and GDP (PPP) per capita was over $22,909, the second highest in Africa. Mauritius has consistently been ranked by the World Bank, as one of the easiest places to do business in Africa, thanks to its supportive business environment and investment-friendly policies. 

The country has a significant number of businessmen who have built multi-million and billion-dollar empires in industries and earned multi-million dollar fortunes to boot. Some of them include Raymond Ah-ChuenBashir Currimjee & Family and Arnaud Dalais, amongst others.

Seychelles 

Seychelles is an archipelagic state surrounded by nearby island countries and territories like the Comoros, Madagascar, Mauritius, and the French overseas departments of Mayotte. It consists of 115 islands in the Indian Ocean. Known as the least populated sovereign African country, Seychelles has an estimated 2020 population of 98,462. Since its independence from the UK in 1976, Seychelle’s economy has developed from an agriculture-based economy to a market-based diversified economy, characterized by rapidly rising service, public sector, and tourism activities.

Reports say the nominal GDP grew nearly 700% while purchasing power parity was nearly 1600% from 1976 to 2015. Seychelles has the highest nominal per capita GDP of any African nation and has the second-highest Human Development Index after Mauritius. It is classified by the World Bank as the only African country with a high-income economy.

Rwanda

Rwanda is a landlocked country in East Africa with a population of just over 13 million people. The country has made significant progress in recent years, following the devastating genocide in 1994. The economy which was initially based on subsistence agriculture has grown rapidly because of a focus on technology. It has a nominal GDP of $12.1 billion and a purchasing power parity of $37.5 billion.

The East African country has been described as an emerging tech hub for Africa, with an increase in start-up companies in recent times. The country has a list of ultra-wealthy entrepreneurs who have made names in their various industries. Some of them include Egide Gatera, Hatari Sekoko and Sina Gerard.

Cabo Verde

Cabo Verde consists of ten volcanic islands with a population of over 550,000 people. Classified as a developing nation by the United Nations in 2007, rather than a least developed nation, the economy of Cabo Verde is service-oriented, with tourism being a significant contributor to the country’s GDP.

Commerce, transport, and public services account for more than 70% of GDP, agriculture and fishing contribute only about 9% of GDP, and expatriate Cape Verdeans contribute an estimated 20% of GDP to the domestic economy through remittances.

Cabo Verde is strategically located at the crossroads of Europe, Africa, and the Americas, making it a hub for international trade and commerce.