Experts Set Agenda For Inclusive Growth, Sustainable Development In Africa

Examining an ongoing study of key factors underlying development in Africa on Friday during the session, organized by the AU Commission and the African Development Bank (AfDB), the speakers made a broad range of recommendations for the continent.

The session which was held on the sidelines of the 36th AU Summit, was focused on driving inclusive growth and sustainable development in Africa. AU’s Commissioner for Economic Development, Trade, Tourism, Industry and Minerals at the AU, Albert Muchanga moderated the session which lasted for around 90 minutes.

The study on Key Actions to Drive Inclusive Growth and Sustainable Development in Africa, was commissioned by the Chairperson of the AU Commission, Moussa Faki Mahamat and the AfDB President, Dr. Akinwumi Adesina.

The study will undertake a deep analysis of Africa’s growth trajectory and identify key actions for AU to double its growth rates from the current level for the next 40 years. Agenda 2063, set by the AU, is Africa’s roadmap and master plan for transforming the continent into the global powerhouse of the future.

Each speaker affirmed their belief that sustained development is within reach. They cited China as an example of a development strategy incorporating inclusive growth, that had propelled the country from a developing nation to a superpower within 40 years.

Acting Chief Economist and Vice President of the AfDB, Prof Kevin Urama who outlined the rationale for the study 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 AfDB’s ‘High 5’ priorities.

“We need new financial models, novel approaches to address them. No African country has achieved consistent growth rates for decades-long growth. Why the inconsistencies, and what are the drivers of rise and fall? We need new financial models’ novel approaches to address them. Redistribution of resources is inevitable”, he said.

Each speaker affirmed their belief that sustained development is within reach. They cited China as an example of a development strategy incorporating inclusive growth, that had propelled the country from a developing nation to a superpower within 40 years.

President Hakainde Hichilema of Zambia said he had no doubt that Africa would overcome poverty and expected nothing less than recommendations fit for purpose.

“What we can do collectively in getting the African economy to grow can no longer be seen as a pipe dream”, the president said in a message read on his behalf.

Sharing examples from Angola, the country’s Finance minister Vera Daves de Sousa said progress meant commitment. “In Angola, the government is totally committed to removing obstacles – improving the businesses environment beginning with the political environment”, she added,

De Sousa said other requisites were tackling excessive bureaucracy and promoting human capital development as a main pillar of the country’s development plan.

Similarly, Columbia University professor and economist, Jeffrey Sachs observed that increasing and sustaining investment from the current level of 20 percent of Gross Domestic Product (GDP) to 40 percent would require a deep quantitative exercise and a development strategy promoted by strategists.

This, according to him, is Africa’s challenge, adding that infrastructure and human capital development would be critical.

Hanan Morsy, Deputy Executive Secretary and Chief Economist at the United Nations Economic Commission for Africa (UNECA), said Africa needed macro-economic stability. “The continent must scale up the production value chain, not just export raw materials”, she stressed.

Other speakers listed additional hurdles the continent faces, chief among them is the cost of capital to achieve the infrastructure expenditure required for growth, the bulging youth population, and the need to fast-track technology innovation and skills.

After further stakeholder consultations, the study will inform recommendations for a development blueprint to help transform Africa’s economies and eradicate poverty. It is expected to be finalized in December 2023.

The key goals of the planned study include identifying the enablers and barriers to inclusive growth, sustainable development, and structural transformation in Africa, generally, and across country classifications based on specific characteristics such as income levels and to formulate remedies to identify binding constraints.

It will also explore the synergies and complementarities of existing policies and initiatives for all African countries to implement for inclusive growth and sustained development, propose recommendations that will serve as a continental strategy for inclusive growth and sustainable development in Africa

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