Launched today, the 2016 Africa Prosperity Report shows that decades of economic growth across the continent has failed to deliver greater levels of prosperity for many African countries.
The Africa Prosperity Report seeks to determine what level of prosperity African countries can and should be expected to deliver given their level of wealth. This is done by assessing a country’s level of wealth (GDP per capita) modelled against its overall ranking in the Legatum Institute's annual Prosperity Index (which uses eight economic and social factors including Entrepreneurship & Opportunity; Governance; Education; Health; Safety & Security; Personal Freedom; and Social Capital.)
- Rwanda has the biggest ‘Prosperity Surplus’ in Africa. Even though its GDP per capita is $1661, it came top of the rankings due to the significant reforms it has made recently to strengthen the rule of law and reduce corruption.
- Interestingly, other large surpluses are found in Senegal and Burkina Faso, driven by over-achievement in Personal Freedom and Governance.
- Central African Republic has the biggest ‘Prosperity Deficit’ in Africa. Its GDP per capita is a measly $594 and it has one of the lowest overall records of prosperity in the world.
- Angola is significantly under-achieving. While it is one of the wealthier countries in Africa (GDP per capita of $6949), its over-reliance on one industry (oil) and its high unemployment rate and track record on civil liberties means it ranked just below Central African Republic as the second worst performing country.
Read the full report here.