• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
AFRIPOL

AFRIPOL

en English
ar Arabiczh-CN Chinese (Simplified)nl Dutchen Englishfr Frenchde Germanit Italianpt Portugueseru Russianes Spanish
  • Home
  • About Us
  • Mission Statement
  • Articles
  • Book Review
  • Archive
  • Contact Us

Africa’s destiny is in her hands

October 6, 2014 by Admin Leave a Comment

Written by Dr. Donald P. Kaberuka

Dr. Donald P. Kaberuka indatwa

Africa’s economy has grown fourfold since the turn of the millennium, with sub-Saharan Africa outperforming the rest of the world in terms of economic growth and at long last banishing any doubts about the continent’s upward trajectory.

Apart from the 10 African countries that still have an African Union or a UN peacekeeping presence, 85 per cent of Africans live in countries that are at peace and relatively stable, and are generating 95 per cent of the continent’s gross domestic product. Indeed, of the world’s 10 fastest-growing economies, seven are from Africa

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article.

That is not the only positive fact. Average incomes have risen by 30 per cent in the past 10 years, having declined by 20 per cent between 1980 and 2000. Strong commodity prices have been central to the turnround, but other factors have played a part. Rwanda and Ethiopia, for example, although not blessed with oil or mineral wealth, are among the strong performers. Nonetheless, across the continent significant challenges remain. Poverty is falling but in most places not fast enough. Social indicators have been improving but inequalities remain. And, although foreign direct investment has increased significantly, job creation remains a struggle.

The reasons for those negatives are not difficult to fathom. There has been limited structural change or diversification. Agriculture’s share of GDP has declined. At the same time, manufacturing growth has been hampered by fragmented markets, while poor infrastructure, particularly a shortage of energy and port capacity, remains acute.

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article

That said, eliminating poverty in the next two decades remains an achievable goal. If the right policy framework is in place and bottlenecks are eliminated, we can look forward to a new Africa.

It is important to remember that the so-called “New Africa” is made up of 54 countries in five regions. Africa is not a single monolithic whole. The current Ebola crisis has again revealed the tendency of those outside the continent to classify it as one entity. The notion of the 21st-century “scramble for Africa” is every bit as pernicious as was the first “scramble” at the end of the 19th century. The only safe generalisation is that Africa is planning, managing and starting to finance its own destiny.

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article.

The continent is being influenced by the four big trends. First, the emergence of a multipolar economic world, bringing new investment sources and export destinations, development experience and knowhow. Second, the demographic potential, the “human capital”, of a young and increasingly urbanised continent of 1bn people, which is expected to double to 2bn by 2050, with two-thirds living in cities. Third, the continuing discoveries of large amounts of natural resource wealth, and the challenges of managing and sharing that wealth. Fourth, the continuing opportunity to leapfrog more developed regions in many sectors through the use of technologies such as the mobile phone.

So how can Africa turn economic growth into true economic transformation? First, the continent needs to achieve real regional economic integration through the building of road, rail and air linkages, opening up borders and eliminating needless “soft” regulatory standards hindering trade.

Second, Africa needs better management of its natural resources to ensure that it takes advantage of the current strong cycle of commodity prices. Commodities should not be sold on the cheap. Instead, they should be processed in value chains and exported on fairer trading terms.

Third, we need to address the challenges faced by those African states that are still experiencing the fragility that is inherent in the development process. This year, I set up a high-level panel under Liberian President Ellen Johnson Sirleaf to address this issue.

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article.

At the root of all these challenges is the gap in African infrastructure, which is both the means to trade and the route to economic and social development. The continent’s primary task is to close the $50bn annual infrastructure funding deficit which costs it at least 2 per cent in annual GDP growth. Private capital is a large part of the answer, in the form of foreign private equity, debt and the untapped resources of African pension funds and capital markets.

The key is to take the risk out of the equation. Today, the prerequisites are in place: in the policy and regulatory areas, the public-private partnership frameworks, and independent regulators. The tools of risk mitigation – such as credit guarantees – are also in place, giving comfort to investors, especially in “high-risk” and low-income countries.

Africa is no longer the place for “business as usual”. Today, it offers a different value proposition, as it moves towards economic transformation.

Dr. Donald P. Kaberuka is president of the African Development Bank

Filed Under: Strategic Research & Analysis

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

More to See

Peter Obi welcomes at Adeboye’s Redemption City (video)

August 13, 2022 By AFRIPOL

U.S. Model Arrested, Charged with Murdering Nigerian American Boyfriend  (see video of her abusing him)

August 12, 2022 By AFRIPOL

RSS AllAfrica News: Latest

  • Africa: We're Listening to Africa and Strengthening Ties – Ambassador Linda Thomas-Greenfield
    [allAfrica] African nations have "unlimited" potential to become "breadbaskets" that not only feed the continent but also a hungry world, Linda Thomas-Greenfield, the U.S. Ambassador to the United Nations, said during a policy address on food security in Accra earlier this month. The Cabinet member with the most broadest African experience and knowledge -- she […]
  • South Africa: SA Should Implement FATF Recommendations to Avoid Greylisting, Says Kganyago
    [SAnews.gov.za] South Africa can avoid possible greylisting if it were to implement recommendations contained in the Financial Action Task Force (FATF) mutual evaluation report.
  • South Africa: Stage 2 Load Shedding Extended
    [SAnews.gov.za] State power utility Eskom has confirmed that Stage 2 load shedding will be implemented from 4pm to midnight on Wednesday and Thursday.
  • Nigeria: 174 Stranded Nigerians Arrive From Libya
    [This Day] The National Emergency Management Agency (NEMA) yesterday received a batch of 174 stranded Nigerians from Libya.
  • Kenya: Obado Rallies Luo Community to Support Ruto Presidency
    [Capital FM] Kisumu -- Outgoing Migori Governor Zachary Okoth Obado has rallied the Luo community to support the President- Elect William Ruto noting that he harbors no hatred for the community.
  • Kenya: I Have Delivered, Magoha Says as He Apologizes Over Appearance of Arrogance
    [Capital FM] Nairobi -- Education Cabinet Secretary George Magoha says he has delivered during his tenure despite appearing to be arrogant.

Tags

Achebe Africa Anambra Boko Haram Buhari CBN Corona Virus Egypt Igbo IMF Inflation Jonathan Kenya Nigeria Okonjo Iweala Peter Obi Sanusi Senate Soludo South Africa Soyinka United States
  • Facebook
  • Instagram
  • Twitter
  • YouTube

Archives

Footer

Africa Political and Economic Strategic Center, AFRIPOL is foremost a public policy center whose fundamental objective is to broaden the parameters of public policy debates in Africa. To advocate, promote and encourage free enterprise, democracy, sustainable green environment, human rights, conflict resolutions, transparency and probity in Africa.

Recent

  • Aisha Yesufu: ‘Politics is not love affair.’ (video)
  • U.S. STRATEGY TOWARD SUB-SAHARAN AFRICA BY THE WHITE HOUSE
  • UMUOJI: Boston Hills Resort & Hotel Ltd is rated a 5 Star Hotel and is now open for Business; Group rate is available!!
  • Labour Party’s Peter Obi visit Femi Kuti, Charley Boy and others
  • Massive Borrowing Puts Nigeria’s Future at Risk

Search

Tags

Achebe Africa Anambra Boko Haram Buhari CBN Corona Virus Egypt Igbo IMF Inflation Jonathan Kenya Nigeria Okonjo Iweala Peter Obi Sanusi Senate Soludo South Africa Soyinka United States

Copyright © 2022 · AFRIPOL