Africa needs sustained annual growth to meet SDGs
AFRICA needs a sustained annual economic growth rate of between 7-10 percent of its Gross Domestic Product (GDP) in order to achieve inclusive growth and sustainable development, regional economic experts have noted.
The sustained growth is expected to aid the continent to achieve the Sustainable Development Goals (SDGs) and Agenda 2063 as encapsulated in the African Development Bank’s “High 5” priorities.
This came out during the just-ended African Union (AU) Summit in Addis Ababa, Ethiopia.
Running under the Theme, “Acceleration of AfCFTA Implementation”, the summit took stock of the progress made to date in the implementation of the African Continental Free Trade Area.
The AfCFTA is envisaged to be the largest free trade area since the formation of the World Trade Organisation given Africa’s current population of 1,2 billion people, which is expected to grow to 2,5 billion by 2050.
During a session organised by the Africa Union Commission and the African Development Bank, experts examined an ongoing study of key factors underlying development in Africa and emphasised the need for the continent to sustain annual growth rates of at least 7-10 percent over the next 40 years if Agenda 2063 is to be met.
The study on “Key Actions to Drive Inclusive Growth and Sustainable Development in Africa”, was commissioned by the chairperson of the African Union Commission, Moussa Faki Mahamat and African Development Bank President, Dr Akinwumi Adesina.
The study will undertake a deep analysis of Africa’s growth trajectory and identify key actions for Africa to double its growth rates from the current level for the next 40 years.
AfDB
Agenda 2063 set by the African Union is Africa’s roadmap and master plan for transforming the continent into the global powerhouse of the future.
Acting chief economist and vice-president of the African Development Bank, Professor Kevin Urama said Africa’s current growth performance is insufficient to eradicate poverty and achieve the Sustainable Development Goals (SDGs) and Agenda 2063 as encapsulated in the African Development Bank’s “High 5” priorities.
“No African country has achieved consistent growth rates for decades-long growth. Why the inconsistencies and what are the drivers of rise and fall?” Prof Urama asked.
Sustainable Development Goals (SDGs)
“We need new financial models’ novel approaches to address them. Redistribution of resources is inevitable.”
Contributing to the discussion, Hanan Morsy, deputy executive secretary and chief economist at the United Nations Economic Commission for Africa said Africa needed macro-economic stability.
“The continent must scale up the production value chain instead of just exporting raw materials,” she noted.-chronicle.co.zw
