In economics, inflation is the pace at which general prices for goods and services increase while currency buying power decreases.
2021 Recap: 6 African countries with the highest inflation rate in 2021
Alternatively, you can say it is a long-term increase in the general level of prices so that one unit of money now buys less than it did previously.
Inflation is one of the most significant stumbling blocks to wealth accumulation. This is due to how it slowly and steadily erodes the value of money. Unfortunately, inflation is a persistent problem across Africa, and many of those affected are unaware that it exists.
To give you a picture of the damage inflation can wreak, if you had N1 million in 2010 and didn’t invest it, your N1 million is worth N323,010.97 in 2020 because the average inflation rate for the ten years was 11.8 percent. That is, your N1 million is worth approximately N323 000. In other words, your N1 million will purchase goods worth N323 000 in 2010.
One typical pattern among African nations with high inflation rates is heavy reliance on imports.
When a country has an import rate that significantly supersedes its export, it is prone to various economic problems, including excessive inflation.
With that being said, the following are the six African countries with the highest inflation rates.
1. The Republic of Sudan
The Republic of Sudan, located in Africa’s northeast part, has the continent’s highest inflation rate. The country’s inflation rate is a stunning 340 percent, according to trading economics.
Zimbabwe’s inflation rate is the second-highest in Africa, at 60.74 percent.
Because of the ongoing armed conflict that has damaged the economy, this country in the Horn of Africa had its inflation rate jump to 33%.
With a rate of 26.98 percent, Angola has the fourth-highest inflation rate in Africa.
The inflation rate in this country is 16.4 percent, making it the sixth-highest in Africa.
Rounding up the list is Nigeria, Africa’s largest economy, with an inflation rate of 15.4 percent.