The Liverpool forward beat off competition from teammate Sadio Mane and Borussia Dortmund striker Pierre-Emerick Aubameyang to land the award, which was presented at a ceremony in Ghana on Thursday evening.
Mane finished second in the poll, improving on last year's third place, which went to Aubameyang this time around.
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The recipient of the prize was decided by a combination of votes from head coaches and technical directors of CAF’s national teams, members of the organisation’s technical and development committee and a panel of media experts.
Liverpool's No.11, who was also crowned BBC African Footballer of the Year last month, enjoyed a memorable 2017 and has scored 23 times in just 29 appearances for the Reds following his summer transfer from AS Roma.
On the international stage, he helped Egypt reach the Africa Cup of Nations final in February before inspiring his country to their first World Cup finals since 1990 by netting twice - including a stoppage-time penalty - to secure a 2-1 victory over Congo in October.