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- the continent’s economic growth remained stable in 2019 at 3.4 percent and is expected to pick up to 3.9 percent
- the moderate expansion of the ‘big five’ pulled down the joint average growth
African development bank has launched its 2020 edition of its flagship annual publication African Economic Outlook. The launch of the 2020 edition, at the Bank’s Abidjan headquarters, was attended by former Liberian president Ellen Johnson Sirleaf, African ministers, diplomats, researchers, and representatives of various international bodies. The annual publication since 2003 is regarded as the yearly report card and a tool for the economic intelligence for assessing Africa’s economic performance and outlook.
According to the African Economic Outlook 2020, the continent’s economic growth remained stable in 2019 at 3.4 percent and is expected to pick up to 3.9 percent in 2020 and 4.1 percent in 2021.Though the rest of the continent recorded an average growth of 4.0 percent in 2019, the moderate expansion of the ‘big five’ pulled down the joint average growth. The ‘big five’ which included Algeria, Egypt, Morocco, Nigeria, and South Africa – recorded a joint average growth rate of 3.1 percent only.
The Outlook described the continent’s growth fundamentals as better with investment expenditure, rather than consumption, accounting for over 50% of GDP growth. Applauding this development, Bank pointed out that such a shift can sustain and accelerate future growth in Africa. The Report underlined the urgent need for investments in education and infrastructure for good returns in long-term GDP.
East Africa continued to lead as the continent’s fastest-growing region, with an average growth of 5.0 percent in 2019, followed by North Africa at 4.1 percent. West Africa’s growth improved to 3.7 percent in 2019, from 3.4 percent the year before. Central Africa also presented improved performance with a growth at 3.2 percent in 2019, against 2.7 percent in 2018. On the other hand, growth in Southern Africa continued to fall from 1.2 percent to 0.7 percent. Natural disasters like devastating cyclones Idai and Kenneth have been blamed for the decline in growth.
Recognising the urgent need to develop human capital in African countries, the central theme of 2020 AEO was Developing Africa’s workforce for the future. The report recommended states to invest more in education and infrastructure. There is a pressing need to develop a demand-driven productive workforce to meet industry needs. The report noted that Africa has to beef up skills in information and communication technology and in science, technology, engineering, and mathematics. Akinwumi Adesina, President, African Development Bank, warned that “With 12 million graduates entering the labor market each year and only 3 million of them getting jobs, the mountain of youth unemployment is rising annually.” and urged to give top priority to job creation.
Despite strong growth indicators, only 18 countries, recorded inclusive growth registering faster average consumption for the poor and lower inequality between different population segments.
