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 economy 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 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 buffer for the impact it will have on the economy.