Business News of Tuesday, 14 January 2025

Source: www.legit.ng

Cairo, Lagos, others emerge on list of cities with biggest GDP growth forecast by 2035

Major cities will still be among the top 100 cities in Africa in terms of economic growth by 2035 Major cities will still be among the top 100 cities in Africa in terms of economic growth by 2035

About 400 million people, or around 21% of the continent's population, are projected to reside in Africa's top 10 metropolitan economies by the mid-2030s, according to a report by the Economist Intelligence Unit.

Over 60% of Africa's GDP is expected to come from these cities, which range in size from expansive megacities to more modest capitals like Libreville, Cotonou, and Port Louis.

These cities' nominal GDP combined was $1.4 trillion in 2023; by 2035, it is expected to have more than tripled to almost $5 trillion.

Nevertheless, growth in these cities is expected to continue at a consistent 6% each year.

By 2035, it projected that major cities like Cairo, Lagos, and Johannesburg will continue to rank among the top 100 cities in Africa in terms of economic growth.

By that time, the economies of the top 20 cities, which include both megacities and quickly growing middleweights, are expected to make up around 70% of Africa's GDP (in 2020 prices and exchange rates).

These cities, with their thriving consumer markets, cutting-edge commercial networks, and strong industrial and import-export sectors, will develop into major centers of trade, industry, and commerce.

But there are also a lot of difficulties with this progress. Urban areas will have to deal with problems like congestion, unofficial housing, elevated joblessness, inadequate public services, stressed utilities, and the growing danger of climate change.

Unlocking the full economic potential of Africa's rapidly changing urban landscape will depend on addressing these issues.

The top ten African cities with the highest GDP forecasts for 2035 are listed thus:

1. Greater Cairo - 1st

2. Greater Johannesburg - 2nd

3. Lagos - 3rd

4. Cape Town - 4th

5. Alexandria - 5th

6. Addis Ababa - 6th

7. Casablanca - 7th

8. Dar es Salaam - 8th

9. Abidjan - 9th

10. Durban - 10th