5 Visa-Free Entry Countries in Africa for All Africans

Free movement and entry of goods and services in Africa is an enabler of development, cultural tourism, trade promotions, and job creation.

Elimination of all forms of restrictions for Africans will contribute to a just implementation of the AfCFTA. Intra-African trade promotions will harness unity, cultural tourism, infrastructural development, and growth of Africa’s economy.

We already have 5 countries accessible to Africans without Visas. Now let’s take a look at the economies of these countries leading the way for a restriction and visa-free Africa:

  1. Seychelles;
  2. Gambia;
  3. Benin;
  4. Kenya;
  5. Rwanda.

Seychelles – Economic Outlook
Recent macroeconomic and financial developments

GDP growth rebounded to 7.9% in 2021 and 9.5% in 2022, exceeding the East Africa averages of 4.7% and 4.4%. Growth was driven by tourism and fisheries on the supply side and by household consumption and investment on the demand side. A successful vaccination program helped reduce the COVID-19 pandemic’s impact on the economy. Overreliance on imports exposed the economy to external shocks. Monetary policy remained accommodative, and inflation declined to 2.8% in 2022 from 9.8% in 2021 as supply disruptions eased but remained higher than before the pandemic. The Seychellois rupee appreciated 33% in 2022, to 14.4 per US dollar, on higher tourism. The fiscal deficit narrowed to 3.6% in 2022 from 6.8% in 2021 as revenue collection improved. The current account deficit also narrowed, to 7.0% of GDP in 2022 from 10.8% in 2021, on buoyant tourism performance. Both deficits were financed by concessional loans and domestic borrowing. Reserves remained strong at around 4 months of import cover in 2021/22. Debt declined to 75.0% of GDP in 2022 from 89.5% in 2020 amid rebounding GDP and an effective debt management strategy. The financial sector is well developed, though highly concentrated, with the three largest firms holding 80% of assets, deposits, and loans. The nonperforming loans ratio remained low, at less than 6% in 2021 and 2022. with 15 social welfare programs, the COVID-19 pandemic’s impact on poverty was low, though unemployment increased to 4.8% in 2020 from 2.3% in 2019. Income inequality is also low, with a Gini coefficient of 0.28 in 2017/18.

Outlook and risks

GDP growth is projected to slow to 5.1% in 2023 and 4.2% in 2024 amid global supply chain disruptions due to Russia’s invasion of Ukraine. Tourism and fisheries remain key growth drivers, but opportunities in knowledge-intensive services (notably digital finance) are untapped. Monetary policy is projected to remain accommodative, and inflation is projected to rise to 4.3% in 2023 and 4.4% in 2024 on slower growth and higher import prices. The fiscal deficit is projected to decline to 1.6% of GDP in 2023 and 0.4% in 2024, driven by the recovery in tourism and increased revenue, while the current account deficit is projected to narrow to 5.4% in 2023 and 4.9% in 2024 amid buoyant tourism. Debt is projected to fall below 70% in 2023 due to continued GDP growth and effective debt management. Uncertainty about the global economic recovery and supply chains remain major risks. Economic diversification and climate adaptation are crucial to build resilience.

Climate change issues and policy options

The government’s climate change policy and strategies prioritize transitioning to a low-carbon economy through reforms in energy, refrigeration and air conditioning, transport, and waste. For 2020–30, Seychelles needs an estimated $61.3 million a year and faces an average financing gap of $14.4 million a year. The government has had several financing arrangements for climate resilience. It raised $15 million through a blue bond backed by the World Bank and introduced the world’s first debt refinancing for ocean conservation, protecting a third of its ocean territory against climate change. The government spends more than 4% of its budget on the environment and climate change, and to complement this, it introduced the sustainable environment levy for visitors as of April 2023. while Seychelles aims to address the bulk of its climate resilience through concessionary financing, the private sector can complement these efforts given the country’s clear strategies and climate resilience commitments; a public–private partnership law that can facilitate investment in green energy and eco-friendly transport; and the country’s well developed and capitalized financial sector, capable of facilitating investment in eco-friendly energy and transport. Seychelles should capitalize on its globally recognized brand of natural beauty.

Gambia – Economic Outlook
Recent macroeconomic and financial developments

After muted 0.6% growth in 2020 due to the COVID-19 pandemic, GDP growth remained subdued at 4.3% in 2021 and 4.4% in 2022, as the effects of Russia’s invasion of Ukraine disrupted agriculture, tourism, construction activities, and private investment. Increased COVID-19 spending (0.5% of GDP) and food support (0.7% of GDP) protected livelihoods and businesses, bolstering real GDP per capita growth from –2.0% in 2020 to 1.9% in 2022. High food and fuel prices induced by Russia’s invasion of Ukraine, freight charges, and the strong US dollar raised inflation from 7.4% in 2021 to 9.6% in 2022. In response, the policy rate was raised from 10% in May 2022 to 12% in September 2022 and 13% in December 2022. Improved revenue collection and spending rationalization contained the fiscal deficit at 4.4% of GDP in 2022, financed mostly by grants and $20 million in Special Drawing Rights. Public debt declined from 83.8% of GDP in 2021 to 80.8% in 2022, yet the risk of debt distress remains high. The current account deficit, financed by foreign direct investment, widened to 13.1% of GDP in 2022, reflecting disruptions in cashew and timber exports and weak remittances. Gross international reserves dropped from $520 million in 2021 (7 months of import cover) to $420 million in 2022 (4.4 months). The financial sector remains resilient, with the capital adequacy ratio at 26.9%, well above the statutory ratio of 10%. The nonperforming loans ratio rose from 5.1% in 2021 to 4.2% in 2022. The poverty rate increased from 48.4% in 2019 to 53.4% in 2022, exacerbated by the COVID-19 pandemic.

Outlook and risks

GDP growth is projected to remain below pre-COVID-19 levels, at 5.2% in 2023 and 5.6% in 2024, as uncertainties about Russia’s invasion of Ukraine, tighter international financial market conditions, and climate change could weaken economic activity in agriculture, construction, energy, and tourism. These shocks could also intensify fiscal pressures and affect the debt profile. Inflation is projected to be 11.7% in 2023, reflecting high fuel and food prices and exchange rate depreciation, but to fall to 9.1% in 2024 as commodity prices normalize. The central bank is expected to continue tightening monetary policy to address inflationary pressures. The fiscal deficit is projected to decline from 2.9% of GDP in 2023 to 1.4% in 2024, owing to restrained spending and improved tax collection efforts. The current account is projected to narrow from 12.5% of GDP in 2023 to 9.9% in 2024 as tourism strengthens and export disruptions dissipate.

Climate change issues and policy options

The Gambia’s Green Growth Index rose from 42.8% in 2010 to 44.6% in 2021, still short of its green growth target. This implies that by enforcing appropriate green growth policies, The Gambia could promote economic growth while reducing vulnerability to climate change. The country’s 2050 Climate Vision and sectoral green growth strategies are aligned with its Nationally Determined Contribution (NDC). NDC financing needs over 2020–30 totals $1.64 billion. In 2019/20, private climate finance inflows amounted to $65 million, mostly from public, bilateral, and multilateral institutions. The private sector accounted for 1% and targeted only a few initiatives on carbon markets in forests and renewable energy. Challenges to private climate finance include a heavy tax regime, currency risk, and technical capacity. The Gambia has the potential to scale up private climate finance through innovative approaches such as green bonds, debt-for-nature swaps, blended financing, and carbon markets. Renewable natural capital increased 86.2% between 1995 and 2018. This suggests the potential to leverage private climate finance with natural resources. The Gambia boasts more than 500 marine fish species and 47.5% of the land area is covered by 505,000 hectares of forests, 10% of which is woodland.

Benin – Economic Outlook
Recent macroeconomic and financial developments

Real GDP growth was steady at 6% in 2022 following a remarkable 7.2% in 2021, led by the primary, secondary, and tertiary sectors. The economy has shown resilience to the effects of recent crises: the COVID-19 pandemic, Russia’s invasion of Ukraine, and the security situation in northern parts of the country. Inflation rose to 2.5% in 2022 from 1.7% in 2021 due to the rising cost of basic necessities. The budget deficit remained high, at 5.5% of GDP in 2022 compared with 5.7% in 2021, due to looser fiscal policy. Outstanding government debt climbed 2.5 percentage points, to 52.8% of GDP in 2022 from 50.3% in 2021. In December 2022, the risk of debt distress was moderate. The current account deficit widened slightly, to 4.9% of GDP in 2022 from 4.1% in 2021, with imports rising more rapidly than exports. The depth of the financial sector remains weak overall, with private bank lending representing only 15.2% of GDP in 2022. The nonperforming loan ratio improved to 12.6% in late December 2021 from 16.8% in late December 2020. Over 70% of credit was concentrated among the five largest borrowers in 2021, up from 64.6% in 2020. About 38.5% of the population was living in poverty in 2019, and underemployment was 72.9%. Social protection programs (health and retirement insurance), essential to strengthening social inclusion, are still in development.

Outlook and risks

Real GDP growth is projected to remain steady at 6.2% in 2023 and 6.0% in 2024 thanks to momentum in the primary, secondary, and tertiary sectors. The main risks to the economy are unfavorable variations in global cotton and oil prices and the negative effects of climate change. Furthermore, the unfavorable evolution of Nigeria’s economic situation and the worsening security situation in Benin’s northern areas could compromise the economic outlook. Inflation is projected to rise to 2.8% in 2023 and 2.3% in 2024 as global oil prices stabilize. Budgetary policy is likely to benefit from an ongoing International Monetary Fund program that provides $638 million in funding. The budget deficit is projected to drop slightly, to 4.5% of GDP in 2023 and 4.1% in 2024. The current account deficit is projected to fall to 4.0% of GDP in 2023 and 3.8% in 2024 due to the decline in raw material prices (food products).

Climate change issues and policy options

The estimated climate finance needed over 2020–30 is $13.8 billion, or $1.3 billion a year. If the country receives the same $2.3 billion a year that it received over 2010–20, it will face a financial deficit of at least $910 million a year. Private climate finance remains largely nonexistent. In 2019–20, climate finance reached $360 million, 98.6% of it from the public sector and only 1.4% of it from the private sector. To boost private sector participation in climate finance, the government needs to create a green investment bank that, for example, issues green bonds, and provides debt relief for small and medium enterprises and startups. Moreover, to achieve green growth based on green industrialization, Benin should further capitalize on its natural capital, which consists of nearly 121 kilometers of coastline and a continental plateau with 3,100 square kilometers of lagunas, brackish lakes, and a river system comprising 700 kilometers of waterways. The country also has large, yet underutilized, mineral assets (gold, construction materials, iron, phosphates, nickel, and zircon).

Kenya – Economic Outlook
Recent macroeconomic and financial developments

Modern Nairobi cityscape – capital city of Kenya, East Africa

Real GDP growth slowed to 5.5% in 2022 from 7.5% in 2021, attributable to the drought, increased commodity prices, and tight global financial conditions. Growth was driven on the supply side by services and on the demand side by household consumption. Inflation rose to 7.6% from 6.1% in 2021, driven by food and energy inflation. Inflation was moderated by subsidies and raising the policy rate to 8.25% from 7% in 2021. The fiscal deficit narrowed to 6.3% of GDP from 8.2% in 2021 due to improved revenue collection and adherence to the International Monetary Fund–supported fiscal consolation path. Public debt rose to 70% of GDP from 68% in 2021, driven by higher interest payments and exchange rate depreciation. The current account deficit widened to 6.0% of GDP in 2022 from 5.5% in 2021, driven by the lower trade deficit. It was financed by drawing down foreign exchange reserves, which fell to $7.42 billion (4.2 months of import cover) at end-2022 from $9.5 billion (5.8 months) at the end of 2021. The Kenyan shilling depreciated to 123.3 per US dollar at end-2022 from 110.2 at end-2021. The capital adequacy ratio of 18.9% and liquidity ratio of 55% were higher than the respective targets of 14.5% and 20%. The nonperforming loans ratio remained high, at 14%. Credit risk concentration is high in manufacturing, energy, water, and agriculture. High extreme poverty (18%), unemployment (12.3%), and income inequality (Gini coefficient of 0.408)—manifestations of slow structural change—remain challenges.

Outlook and risks

GDP is projected to grow 5.6% in 2023 and 6.0% in 2024, driven by services and household consumption. Inflation is projected to rise to 8.6% in 2023 and 5.9% in 2024, driven by food and energy inflation. Monetary policy is expected to remain tight. The fiscal deficit is expected to narrow to 6.1% of GDP in 2023 and 5.4% in 2024, in line with the fiscal consolidation path. The current account deficit is projected to narrow to 5.2% of GDP in 2023 and 5.0% in 2024, attributable to a recovery in global demand. The outlook is subject to considerable risks, including the effects of a prolongation of Russia’s invasion of Ukraine on commodity prices, tight global financing, drought, and slow global economic recovery. Possible risk mitigation measures include diversifying exports and market destinations, enhancing domestic resource mobilization, deepening financial sector reforms, and accelerating structural reforms.

Climate change issues and policy options

Kenya’s Green Growth Index stagnated in the 48%– 51% range during 2010–21, about halfway to its green growth target. This implies that if Kenya were supported by green growth policies, it could promote economic growth while reducing vulnerability to climate change. Kenya’s national and sectoral green growth strategies and policies are aligned with its Nationally Determined Contribution (NDC). In 2019/20, NDC financing needs totaled $8.6 billion. Inflows from public and private sources amounted to $1.9 billion, 21% of which was from the private sector. Kenya has the potential to scale up private climate finance through innovative financing approaches, such as green bonds, debt-for-nature swaps, blended financing, and climate markets. Renewable natural capital rose slightly, whereas nonrenewable natural capital rose 110% between 1995 and 2018. This suggests the potential to leverage private climate finance with natural resources. Notable initiatives enhancing natural capital include continuing oil exploration, increasing tree cover from 8.8% in 2022 to 30% by 2032, transitioning to 100% clean cooking by 2028, restoring 10.6 million hectares of degraded landscapes by 2032, and increasing land under irrigation from 500,000 acres in 2021 to 1.4 million acres by 2030. About 21%–30% of the national territory is under forest cover.

Rwanda – Economic Outlook
Recent macroeconomic and financial developments

GDP growth reached 10.9% in 2021 before declining to 8.2% in 2022 due to climate shocks on domestic food production; high energy, food, and fertilizer prices; and weak external demand for exports. Inflation rose from 0.8% in 2021 to 17.7% in 2022, reflecting higher costs for imported goods and low domestic food production. The policy rate was raised 50 basis points, from 6.5% in November 2022 to 7% in February 2023, to reduce increasing inflation. The government introduced fertilizer and public transport subsidies to prevent a spiral in the cost of living. The fiscal deficit was an estimated 8.8% of GDP in 2022, up from 8.5% in 2021, attributed to domestic revenue mobilization that extra tax revenue equivalent to 0.2% of GDP, while public debt remained at moderate risk. The current account deficit was an estimated 12.6% of GDP in 2022, up from 10.7% in 2021, because of a high import bill. The capital adequacy ratio at the end of September 2022 was 22.3%, far above the prudential limit of 15%, while the average return on assets was 3.0% and the average return on equity was 5.1%. The nonperforming loans ratio fell to 4.1% in September 2022 from 5.1% in September 2021. The extreme poverty rate declined from 47% in 2019 to 45% in 2021, and unemployment worsened to 17.9% in 2020 from 15% in 2019, with youth unemployment up to 22.4% from 18.2% during the same period.

Outlook and risks

Real GDP growth is projected to reach 7.6% in 2023 and 8.0% in 2024 on account of continued slow recovery in domestic agricultural production and recovery in exports and conference tourism. Inflation is projected to fall to 7.4% in 2023 and 5.6% in 2024 on account of a drop in imported inflation. The fiscal deficit is projected to decline to 8.0% of GDP in 2023 and 6.8% in 2024 due to continued fiscal consolidation and higher domestic revenue. Debt is projected to remain at moderate risk. The current account deficit is projected to narrow to 11.3% in 2023 and 10.8% in 2024 on account of a temporary reduction in capital imports, recovery in conference tourism, and strong remittances from the diaspora. Overall moderate economic performance is attributed to elevated risks from a prolongation of Russia’s invasion of Ukraine and political tensions in the Great Lakes region.

Climate change issues and policy options

Rwanda has articulated a bold vision to become carbon-neutral by 2050, with ambitious climate adaptation and mitigation interventions, at a cost of $11 billion by 2030. However, the country faces challenges mobilizing private financing due to high upfront capital needs for key projects, financing costs from banks, and collateral requirements. To address these challenges, it launched the Rwanda Green Investment Fund at the 2022 United Nations Climate Change Conference. Capitalized with $104 million, the fund has been financing project preparation and providing concessional credit facility loans and guarantees to support small and medium enterprise investment in green projects. The fund aims to mobilize climate finance at speed and scale to finance a pipeline of innovative projects in clean energy, smart mobility, sustainable cities, climate-smart agriculture, increased forest cover, waste, and the circular economy. These investments are expected to crowd in at least $364 million, create at least 372,000 jobs, and eliminate 1 million tons of carbon dioxide emissions by 2030. The country’s stock of natural capital, economic value, and potential to support climate finance and the transition to green and sustainable growth have not been adequately estimated.

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