Salah, a former player for AS Roma, is the first Egyptian to win the award since Mahmoud al Khatib in 1983.
He also had a hand in all seven of the goals that took the Pharaohs to qualification for their first World Cup since 1990. Egypt had been absent from the World Cup for 28 years.
Salah was awarded the EA Sports Player of the Month award in November.
Salah scored last-minute victor from the penalty spot to seal Egypt's place in next summer's World Cup as his national team reached the major tournament for the first time since 1990.
Mohamed Salah won African Player of the Year on Thursday, a reward for success on all fronts in 2017 for the Egypt forward after he inspired his country to a long-awaited World Cup place and had a phenomenal start to his career at Liverpool.
He has scored 24 goals in all competitions for Liverpool this season.
Winning this award is a dream come true. I had a fantastic time, with the national team and the team, it was an unbelievable moment.
Mohammed Salah was crowned the BBC Africa player of the year in 2017. I would like to dedicate it to all the kids in Africa and Egypt.
Salah dedicated the award to the children of Africa and Egypt, urging them to follow their dreams and belief.
Mane has failed to match the performances he showed last season.
During his time at Chelsea, the Egyptian was placed on the bench by then manager Jose Mourinho on a number of occasions till he was sent to Florentina on loan.
The 25-year-old has netted an impressive 23 goals in 29 games since joining the Reds from Italian Serie A outfit AS Roma in July.
The Egyptian global is second in the league goal-scorer charts behind Tottenham hitman Harry Kane who took his total to 18 and 24 in all competitions with 8 goals last month.