The International Monetary Fund (IMF) projects that economies of Angola and Ethiopia are scheduled to grow stronger than Kenya’s.
This projection means that Kenya is set to be replaced as the third-largest economy in sub-Saharan Africa by Angola and Ethiopia.
Faster GDP growth in Angola and Ethiopia will see Kenya relegated to number five in sub-Saharan Africa’s economic rankings.
Currently, Nigeria is Africa’s largest economy .
A return to growth linked to higher oil prices saw Angola overtake Kenya last year, according to the IMF, after the nation—which is the continent’s second-largest oil producer after Nigeria—ended years of recession.
Ethiopia is this year set to replace Kenya from position four on the back of easing armed conflict in the nation and the continuation of the ambitious economic reform drive aimed at opening up one of Africa’s fastest-growing but most closed economies.
The IMF expects the economies of Ethiopia and Angola this year to expand by 13.5 percent and 8.6 percent respectively on dollar terms.
The IMF projects Kenya’s GDP to hit US$117.6 billion this year, behind Nigeria (US$574 billion), South Africa (US$422 billion), Angola (US$135 billion) and Ethiopia (US$126.2 billion).
So far, South Africa and Ethiopia have fared better than Kenya in attracting foreign investments eyeing a population that has more cash to spend.