Report Stresses Need for Structural Transformation to Ensure Sustainable Growth in Africa

Addis Ababa, December 19/2023(ENA)  Achieving sustainable growth and building resilience requires structural transformation, according to the Economic Report on Africa 2023, which was launched on December 18, 2023, in Abuja, Nigeria.

The report titled: “Building Africa’s Resilience to Global Economic Shocks” has also stressed the need for countries to identify optimal combinations of policy actions to nurture an industrial program.

According to the report presented by the Director, Macroeconomics and Governance Division at the United Nations Economic Commission for Africa (UNECA), Adam Elhiraika stated that successful industrial policy requires both sectoral focus as well as getting the basics right.  

It also shows that the current global economic architecture affords opportunities for African countries to leapfrog and accelerate industrialization through careful experimentation of what has worked elsewhere and adapting it to local conditions.

Elhiraika, who also presented the 2023 Africa Sustainable Development Report, further explained that firm survival and growth in Africa were closely linked with exporting, working with international capital and international or global firms, adopting international managerial norms and standards as well as developing industrial clusters.

On promoting regional value chains, the report stated that countries can collaborate in creating, for example, regional agricultural commodity markets that will help to connect surplus economies with net importers for wheat, sugar and rice. This will reduce dependence on Russia and Ukraine.

“Financial integration could also protect the continent from the vicious cycle of debt distress and liquidity crunches through regional bond markets that would enhance savings mobilization, risk pooling and funding for regional and national infrastructure.” the report explains.

It also called for new approaches for African countries to address challenges of global economic shocks and improving risk management and building resilience strategies through well-designed national development plans and good governance, as well as structural transformation through equitable green growth and smart industrial strategies.