Empowering people through investments in skills and technology needed to boost development
By participating more effectively in the global production of goods and services,
Produced annually by the
The continent's growth is projected to accelerate to 4.8 percent in 2014 and 5 to 6 percent in 2015, levels which have not been seen since the global economic crisis of 2009.
Note: (e) estimates; (p) projections. Source: African Economic Outlook 2014.
"In order to sustain the economic growth and ensure that it creates opportunities for all, African countries should continue to rebuild shock absorbers and exercise prudent macro management. Any slackening on macro management will undermine future economic growth," said Mthuli Ncube, Chief Economist and Vice-President of the
"In the medium- to long-term, the opportunity for participating in global value chains, should be viewed as part as part of the strategy for achieving strong, sustained and inclusive growth," he added.
The report argues that more effective participation in regional and global value chains - the range of activities in different countries that bring a product from conception to delivery to the consumer - could serve as a springboard for
Avoiding that trap involves investing in new and more productive sectors, building skills, creating jobs and acquiring new technology, knowledge and market information. These interventions require sound public policies, as well as entrepreneurs that are willing and capable of helping achieve these gains.
The report uses the example of
"African economies have a great potential to build on their demographic dynamism, rapid urbanisation and natural-resources assets. The challenge now for many of them is to ensure that greater insertion into global value chains is achieved and has a positive impact on people's lives," said
"Public policies need to be articulated in a targeted strategy that promotes more equitable economic and social transformation and an environmentally sound development," he added.
The African Economic Outlook shows that there has been remarkable progress in human development, with lower poverty levels, rising incomes and improving rates of school enrollment and health coverage.
Further achieving real human development gains requires empowering people and ensuring environmental sustainability, so that economic growth can yield benefits for all. In order for value chains to effectively integrate the poor and marginalized, often including women, targeted public policies and inclusive business models should facilitate access to productive assets such as land and financing, enhance productivity, and improve the resilience of small producers.
"As engagement with global value chains deepens, the appropriate measures need to be in place to mitigate the risks which they can bring about, such as volatile prices, unfair competition and increased vulnerability," said Pedro ConceiÇÃo, Chief Economist at
For the full report, including statistics and 54 individual country notes, please visit www.africaneconomicoutlook.org . For more information on the
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