Africa’s economy should transform this decade

AFRICA’S economic transformation process has seen solid and sustained growth over a decade albeit uneven and without a sufficiently firm foundation.

The goal of a regionally integrated and economically diverse Africa, according to the African Development Bank (AfDB)’s strategy for 2013–2022, will establish Africa as the next global emerging market.

However, this growth is only possible through the inclusion of the young and old, women and men, rural and urban communities alike, while also being increasingly green in every economic aspect.

Africa has experienced unparalleled growth and stability over the past decade which has changed perceptions about Africa for the better.

Six of the world’s 10 fastestgrowing economies were in Africa between 2000 and 2010 and projections remained strong until the COVID-19 pandemic struck in 2020.

Despite this, economists project growth to rebound slowly before hitting pre-covid levels.

The AfDB notes that high commodity prices have played a role in seeing the African economy’s take off but not only so, macroeconomic policies and sustained reform have also helped improve the growth. Other key factors that have contributed to this growth include stronger governance and better conditions for private sector development.

A damper to the rallying growth of the African economy is conflict which remains a concern though incidences have declined which has reduced the contagion for neighbouring countries and boosting investor confidence in many regions.

Many countries have been advancing toward meeting the Millennium Development Goals and with new investments and faster growth, Africa has an opportunity over the next decade to become the next emerging market and global growth spot.

The demand for Africa’s exports has also been growing as well as internal demand which could help accelerate growth. However, Africa has to seize its potential in water, agriculture, renewable energy and other sectors, especially oil, gas and minerals to achieve solid growth.

To address unemployment, Africa’s vision Africa should include high-quality growth policies that seek to create more employment opportunities for all with the dearth of infrastructure, infrastructure development should prioritise creating opportunities that will drive Africa’s transformation.

Intelligent Afrikan