Experts say lurking risks threaten Africa’s growth
By Tesfa-Alem Tekle
April 1, 2016 (ADDIS ABABA) – Africa’s medium-term growth prospects for 2016 and 2017 is said to see progress however experts warned that there still remain risks and uncertainties that might hinder it.
The continental economic growth forecast and its challenges were disclosed by experts at African Development Week meeting which was officially launched in Addis Ababa, Ethiopia, on Thursday March 31.
The week-long occasion has created a platform for discussion on a range of issues around Africa’s economy, regional integration, investment and related areas.
At the opening ceremony, Director Adam Elhiraika of the Macroeconomic Policy Division of the Economic Commission for Africa (ECA) presented a paper on the overview of recent economic and social developments in the continent.
Elhiraika said Africa’s growth will increase in the next year, driven by strong domestic demand of goods and investment.
However he said risks that include the weak recovery of the global economy and China’s economic slowdown, low commodity prices and the depreciation of major currencies, the tightening of monetary policy in the United States and the European Union, could hamper the expected growth.
Droughts and security and political instability were also cited as major stumbling blocks to Africa’s structural transformation.
“As a result we need to come up with African solutions to these risks if we are to witness the expected growth,” said Elhiraika.
Adding value to natural resources to create more jobs opportunities, investing in agro-processing industries, were among strategies suggested as means to shoulder the economy.
Commodity price developments and Counter-cyclical macroeconomic management strategies and diversification from commodity sectors were also suggested among others.
It was disclosed that increased political stability across the continent would also increase economic growth through consumption and investment.
Elhiraika underscored a need for increased intra-African trade as well as matching increasing urbanisation on the continent with an industrialised process that provides required skills.
The creation of more jobs, said Elhiraika, would address many issues on the continent, including poverty reduction and inequalities.
Participants discussed many issues including how the continent can turn the fast-growing informal sector into formal jobs, the need for the continent to fund its own development agenda and the need to harmonise Africa’s developmental plans, among others.
The inaugural African Development Week meeting is held under the theme; “Towards and Integrated and Coherent Approach to The Implementation, Monitoring and Evaluation of Agenda 2063, and the Sustainable Development Goals.”
Participants have also engaged in constructive debates that will promote Africa`s structural transformation through green industrialization.
Deliberations will over the week evolve around the transition from the Millennium Development Goals (MDGs) to the Sustainable Development Objectives (SDGs) and Africa’s 50-year development plan; Agenda 2063.
“We will debate on how countries can adopt and implement effectively a common framework for meeting the goals of Agenda 2063 and the 2030 Agenda for sustainable development,” said Hamidi Mwinyinvua, Chair of the outgoing Bureau of the Committee of Experts and also Tanzania`s Ambassador to Ethiopia.
Commissioner for Economic Affairs at the African Union Commission, Anthony Mothae Maruping called on African countries to embrace an “integrated and coherent approach to implementation, monitoring and evaluation of Agenda 2063 and SDGs”.
“Current economic and financial challenges are spurring member states towards economic transformation,” he said as he urged member states to harmonise Agendas 2063 and 2030 for Africa`s transformation.
Deputy Executive Secretary of the Economic Commission for Africa, Abdalla Hamdok, called for constructive debate and thought provoking discussions that will lead to the formulation of strategies for the effective implementation for the continent`s collective developmental vision.
He cautioned, however, that “such strategies should not only focus on expediting the promotion of strong and sustainable long term growth but also ensuring that the benefits of such growth are widely shared in order to reduce poverty and improve African’s standards of living”.
Admasu Nebebe of the Ministry of Finance and Economic Development of Ethiopia said the full implementation of Agenda 2063 and Agenda 2030 will improve the lives of more than one billion people on the African continent.
(ST)