The International Monetary Fund (IMF) has projected that South Africa could surpass Nigeria to become the largest economy in Africa.
According to the IMF’s World Economic Outlook, South Africa, which has one of the most robust economies in Africa, is estimated to approach a gross domestic product (GDP) of $401 billion by 2024.
However, the Bretton Woods institutions calculations suggest that Nigeria and Egypt, based on current prices, have GDPs of $395 billion and $358 billion, respectively.
The IMF also projects that South Africa will briefly surpass Nigeria, the most populous African nation, for a year before falling behind once again.
The report, released last week, suggests that South Africa could potentially fall to third place, trailing behind Egypt in 2026.
Daily Trust reports that some policies of President Bola Ahmed Tinubu have further mounted pressure on Nigeria’s struggling economy. Topmost among them is the fuel subsidy removal and the unification of the exchange rates at the I&E window.
Many experts have described the policies as ill-timed as no concrete evidence was put in place as a buffer for the impact it will have on the economy.
Although the president has said the gains of his economic reforms may not be felt immediately, experts and labour unions have knocked some of these policies tagging them as “Anti-people,”
Only recently, organised labour had threatened to shut down the economy over the hardship experienced by Nigerians but opted out at the 11th hour after meeting with the federal government.