A positive current account balance indicates that a country earns more from exports, overseas investments, and remittances than it spends on imports and outbound financial flows.
This excess can serve as a buffer against external shocks like unpredictable commodity prices, fluctuating currency rates, and geopolitical instability, which have traditionally affected many African countries.
With global demand generally uncertain, a robust current account might help countries withstand downturns.
Furthermore, a country with a positive current account balance often has a strong export base or restricted imports.
African countries that fall into this category can boast of a competitive export portfolio, such as Morocco’s automotive industry.
Encouraging value addition to raw materials, improving trade logistics, and strengthening regional trade agreements through the African Continental Free Trade Area (AfCFTA) are some of the things that help to maintain a positive balance and promote long-term economic growth.
Current account balance
In the framework of the IMF’s World Economic Outlook (WEO), the current account balance is a gauge of a nation’s global financial standing.
It is the sum of a nation’s net foreign income, net current transfers, and the value of its imports and exports of goods and services.
A surplus indicates that the country sells more than it imports, gaining more from foreign investments and remittances than it pays out.
A deficit indicates that the country purchases more than it exports spends more on foreign investments, or pays out more in remittances than it receives.
Additionally, a surplus implies that the country is a net lender to the rest of the world, whilst a deficit shows that it is a net borrower.
The IMF WEO employs the current account balance as a crucial statistic to examine global trade patterns, imbalances, and economic interdependence.
With that said here are the African countries projected to have the highest current account balance in 2025, as per the IMF’s World Economic Output report.
Top 10 African countries projected to be the highest earners in 2025
| Rank | Country | Current Account Balance (% of GDP) 2025 projection |
|---|---|---|
|
1. |
Libya |
12.5% |
|
2. |
Zambia |
6.9% |
|
3. |
Djibouti |
4.9% |
|
4. |
Gabon |
3.1% |
|
5. |
South Sudan |
2.4% |
|
6. |
Republic of Congo |
2.1% |
|
7. |
Eswatini |
1.7% |
|
8. |
Angola |
1.5% |
|
9. |
Botswana |
1.5% |
|
10. |
Zimbabwe |
0.4% |
