Nigeria and Egypt are expected to become respectively the fifth with $13.1 trillion and seventh with $10.4 trillion in real GDP global economic powers in 2075, the projection places Nigeria fifth behind China, India, the USA and Indonesia and Egypt seventh behind Nigeria and Pakistan, according to a report featuring very long-term forecasts, published by US bank Goldman Sachs. Entitled “The Path to 2075“, the report also indicates that these two African countries should join the Top 15 global economic powers as early as 2050, when Egypt would climb to 12th place with $3.5 trillion and Nigeria would occupy 15th position with $3.4 trillion in real GDP.
Nigeria’s growth is expected to be driven by its large, young population, its potential in the agricultural and energy sectors, and its emerging technology sector. Goldman Sachs explained that the valuation was based on in-depth data analysis and economic modeling, which offered a fascinating glimpse into the future, highlighting shifts in economic power and the emergence of new players on the global stage, This Day reported.
Nigeria’s key sectors
Lagos is already regarded as an emerging technology hub in Africa, often dubbed “Africa’s Silicon Valley“. Fintechs, digital startups and mobile telephony, combined with a growing digital population, will play a crucial role in the country’s future development, according to estimates by Goldman Sachs analysts Kevin Daly and Tadas Gedminas. The country has extensive arable land and a favorable climate. With investment in smart farming and modern agricultural techniques, it could not only feed its growing population but also become a major exporter of agricultural products. Infrastructure development is crucial.
Nigeria will need to invest massively in energy (beyond oil), transport, communication networks and education. Africa still has an infrastructure deficit, but continued growth in this area will be a major economic driver. The financial services of Nigerian banks, with the expansion of digital services, have begun to establish themselves in other African countries. Finance is therefore a strategic sector with enormous growth potential. So is oil and gas.
Egypt will be the world’s seventh-largest economy in 2075
This is largely thanks to the country’s strategic location, growth in the services sector and government reforms in the infrastructure and energy fields. Controlling the Suez Canal, a key route for world trade, Egypt will play a key role in international shipping and could increase its commercial and political influence.
Crucial areas
According to Goldman Sachs, Egypt’s megaprojects are catalysts, such as the new administrative capital and the extension of the Suez Canal. Infrastructure, including ports, roads and railroads, will be major levers for sustaining economic growth and attracting foreign investment, while the tourism sector, a traditional pillar of the Egyptian economy, will continue to grow.
The country’s rich historical and cultural heritage will attract millions of visitors, while encouraging investment in the hotel and luxury tourism sectors. The country has made significant strides in the exploitation of solar and wind energy, notably with the Benban solar park, one of the largest in the world. By 2075, the country could become a major exporter of renewable energies, taking advantage of its abundant sunshine and access to wind in certain regions. The Egyptian technology sector is growing, particularly with the development of fintechs and startups. The Egyptian government has also made efforts to promote a digital economy, and the financial sector, centered around Cairo, could become an engine of growth, boosting forecasts for the Egyptian economy.
Comparison and shared strengths
Favorable demographics, Nigeria and Egypt will benefit from a young and growing population, a key lever for the labor market and domestic consumption, economic diversification as Nigeria will have to overcome its dependence on oil, Egypt is already diversifying into renewable energies, transport, the Technology Hub and innovation, both countries, although in different regions, show a growing interest in technology and innovation, as vectors for jobs and growth.
