If you have been reading the news in 2024, you would have noticed the growing wave of protests across Africa due to the high cost of living not matching incomes. A few weeks ago, Nigeria’s labor force called a nationwide strike to advocate for a higher minimum wage. Last week, Kenyans came out in droves to protest a tax increase while their incomes remained unchanged. Across Africa, the stark reality for millions is one of financial fragility. In 2024, the disparity between the continent’s richest and poorest nations has become more pronounced than ever.
A useful way to understand these economic disparities is through the Gross National Income (GNI) per capita. GNI is a basic but valuable metric to gauge a country’s economic well-being. It is calculated by taking the total income generated by a country within a year and adding it to any income earned by residents of that country from foreign investments. This is then divided by the total GNI and the country’s population. This gives you the average income of a nation’s citizens and is often used to compare living standards. The GNI per capita has become a key indicator in assessing the health of any economy regardless of its economic challenges.
Over the years, the World Bank has used GNI per capita to categorize countries into income groups. According to its recent World Development Report, there are 26 low-income, 108 middle-income, and 83 high-income economies globally, according to their GNI per capita. Here are the ten African countries with the lowest GNI per capita in 2024.
1. Burundi – $240 (Low-Income Economy)
Burundi is the African country with the lowest GNI per capita. 87% of the population live below the World Bank’s poverty measure of $1.90 per day. Burundi’s economy is predominantly agricultural-based. Over 80% of the population engages in subsistence farming, which means the average Brundi citizen doesn’t earn a lot. Burundi also struggles with ethnic tensions and political unrest, which further hinders economic development and foreign investment.
2. Somalia – $470 (Low-Income Economy)
Somalia’s economy has a history of prolonged conflict, drought, and lack of central governance. According to the International Monetary Fund (IMF), Somalia’s unemployment rate is around 75%, one of the highest in the world. And the country’s GNI per capita reflects the severe challenges it faces. Despite these hurdles, remittances from the Somali diaspora, which amount to approximately $1.4 billion annually, play a crucial role in sustaining the economy.
3. Central African Republic – $480 (Low-Income Economy)
The Central African Republic (CAR) has the 5th highest poverty rate globally. Nearly 70% of the country’s people live in poverty. CAR’s economy is heavily reliant on agriculture, forestry, and mining. These sectors have been susceptible to instability and poor governance.
4. Mozambique – $500 (Low-Income Economy)
Although Mozambique is blessed with natural resources, the country continues to face high poverty levels. According to the World Bank, nearly 63% of the population lives below the national poverty line. The country’s GNI per capita of $500 is due to its reliance on agriculture and extractive industries. Typically, these industries do not sufficiently translate into broad-based economic growth. Although the recent discovery of natural gas reserves in Mozambique offers hope for the future, significant economic reforms are important to unlock this potential.
5. Madagascar – $510 (Low-Income Economy)
Madagascar’s economy is largely based on agriculture, fishing, and tourism. Despite its rich biodiversity and natural resources, the country struggles with political instability and poor infrastructure, significantly affecting the informal sectors. These challenges contribute to a low GNI per capita. According to the World Bank, about 75% of the population lives below the national poverty line.
6. Sierra Leone – $510 (Low-Income Economy)
Sierra Leone’s economy is primarily dependent on mining, particularly diamonds. However, this sector has not been sufficient to lift most of the population out of poverty. The country’s GNI per capita of $510 reflects its ongoing struggle with poverty. According to the UNDP, over 53% of the population lives below the national poverty line.
7. Democratic Republic of Congo – $590 (Low-Income Economy)
The Democratic Republic of Congo (DRC) is rich in natural resources. Most raw mineral deposits remain untapped and are worth an estimated $24 trillion. However, it remains one of the poorest countries. The country’s low GNI per capita highlights the disparity between its potential wealth and the actual economic conditions experienced by its population. About 65% of the country’s approximately 100 million population gets by on less than $2.15 a day. The DRC’s vast mineral wealth, including cobalt and copper, is often exploited without benefiting the local population.
8. Niger – $610 (Low-Income Economy)
42.9% of Nigerians live in poverty, earning less than $1.90 per day. 83% of the population lives in rural areas. 20% of Nigerians cannot meet basic daily food and nutrition needs. Niger’s economy is predominantly agric-based. However, a significant portion of the population engages in subsistence farming. The country faces numerous challenges, including desertification, political instability, and limited economic diversification. All these challenges contribute to its low GNI per capita.
9. Malawi – $640 (Low-Income Economy)
About 70% of Malawi’s population lives below the $2.15 international poverty line, with about 46% of its national income being held by the top 20%. Under its recent national development strategy and vision (Malawi 2063), the government of Malawi plans to transform the country into an upper-middle-income country by 2063.
10. Liberia – $680 (Low-Income Economy)
Liberia is a least-developed, low-income country, with 51 percent of its estimated 4.5 million people living in poverty. Liberia’s economy relies heavily on natural resources, including rubber and iron ore. However, these sectors have not been enough to drive significant economic development. The share of people living below the international poverty line ($2.15 a day) remains high, at 35.4%.
Conclusion
In conclusion, the stark economic disparities across Africa in 2024 underscore the profound challenges facing many nations. With GNI per capita serving as a critical measure of economic health, it’s evident that countries like Burundi, Somalia, and the Central African Republic face significant hurdles in achieving sustainable development. As protests highlight the disconnect between living costs and stagnant incomes, these nations grapple with poverty, political instability, and economic dependency on limited sectors. Addressing these issues demands local reforms and international cooperation to foster inclusive growth and improve livelihoods for millions across Africa.