• “African Economic Outlook 2017″: Liberalizing African Entrepreneurs’ potential
  • “African Economic Outlook 2017″: Liberalizing African Entrepreneurs’ potential

“African Economic Outlook 2017″: Liberalizing African Entrepreneurs’ potential

African governments need to rely more on African entrepreneurs for economic industrialization. This is the outcome of the 2017 edition of the major report “African Economic Outlook”, published on May 22, 2017, alongside the 52nd Annual Meeting of the African Development Bank (ADB) Group.

 

By ANA

 

As usual, the 2017 edition of the African Economic Outlook was published on the sidelines of ADB Annual Meetings. The annual report was prepared in partnership by three institutions, the African Development Bank, OECD Development Center and the United Nations Development Program. And for its 16th edition, it targeted African entrepreneurship and industrialization. As such, the conclusions of the rapporteurs are without appeal: African governments must rely more on African entrepreneurs for economic industrialization.

“The Entrepreneurs must be key players in the African fourth industrial revolution”

African Governments need to strengthen their support for job creation by taking more ambitious and better targeted measures. Despite a decade of progress, 54% of the populations of the 46 African countries are still trapped in multifarious poverty – health, education and living standard. In addition, claims for better job opportunities are the main cause of civil protests, motivating one-third of all public events between 2014 and 2016 – a proportion that should be placed in the context of decreasing level of social unrest.

With an active population expected to increase by 910 million between 2010 and 2050, more and better job creation remains a major challenge for African decision-makers. “The key to successful development in Africa is to support the emerging culture of entrepreneurship – to use Hernando De Soto’s famous words “the other way” towards development, a way to release this overflowing creativity and turn the opportunities into phenomenal achievements,” said Abdoulaye Mar Dieye, Director of the United Nations Development Program’s Regional Office for Africa. Yet, the study points out that, while 26 African countries have adopted an industrialization strategy, most of them focus on large manufacturing firms rather than entrepreneurs in sectors with high growth potential and job creation, including start-ups and small and medium-sized enterprises. Yet, the latter generate most of jobs in the formal sector in Africa.

“African economies cannot afford to miss the next stage in the transformation of their production. The entrepreneurs must be key players in the fourth African industrial revolution,” said OECD Development Center Director and Special Advisor to the Secretary-General of the Organization on Development, Mario Pezzini.

“With a vibrant private sector, a widespread entrepreneurial spirit and abundant resources, Africa has the means to accelerate growth and make it even more inclusive”

Meanwhile, the study looks to a positive evolution of the continent. If “economic growth in Africa has stalled in 2016, reaching 2.2 per cent – as a result of declining world commodity prices, a weak global recovery and unfavorable weather conditions affecting agricultural production in some regions – it is projected to increase by 3.4% in 2017 and 4.3% in 2018, if the commodity prices, the global economic recovery and macroeconomic reforms continue.”

They add: “Africa’s growth is increasingly based on domestic factors, as evidenced by the dynamic private and public consumption, which together contributed to GDP growth of 60 % in 2016. This growth is also accompanied by human development progress: 18 African countries reached a medium or high level of human development by 2015. Finally, foreign direct investment, attracted by emerging markets and rapid urbanization in the continent, remained at $ 56.5 billion US in 2016 and is projected to reach $ 57 billion in 2017. Concentrated before on natural resources, there has been diversified investment in the building sector, financial services, manufacturing, transport, electricity and information and communication technologies

“With a vibrant private sector, a widespread entrepreneurship spirit and abundant resources, Africa has the means to accelerate its growth and make it more inclusive,” observed and stated Abebe Shimeles, acting Director of Macroeconomic Policy, Prospecting and Research at the African Development Bank.

 

See the study: www.africaneconomicoutlook.org/fr

 


 

Auteur : ANA // Photos : logos BAD et OCDE © BAD et OCDE

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