Africas | Addis Ababa: Launch of the report on the dynamics of Africa 2018.

Since its creation in 1963, the African continental institution has never produced an economic report on development. Because most reports were produced by European organizations …
It is to alleviate this situation that the Economic Commission of the African Union with the contribution of African economists and statics have set up a team in collaboration with OCEDE, which produces the report on the development of the continent.

Africa needs more coherent development strategies, which emphasize better public action, to fully address the challenges of growth, employment and inequality related to the unprecedented emergence of the continent, according to the first edition of the annual economic report of the African Union Commission, produced in collaboration with the OECD Development Center.

The Dynamics of Development in Africa 2018 is the first annual economic report of the the CUA. According to the badysis, the favorable trend in commodity prices, robust domestic demand, progress in macroeconomic policies and diversification strategies of national economies have been key drivers of recent African growth, which is expected to 4% per annum between 2018 and 2020. As well as the choice, winning, of some countries to increase investment in infrastructure and the multiplication of commercial partnerships – especially with China, India and other emerging countries

Since the beginning of the century, Africa has been the second fastest-growing region in the world after Asia, with an average annual growth rate of 4.7% in gross domestic product (GDP) between 2000 and 2017. However, this growth has not been enough to trigger substantive changes. The report, on the theme of "growth, jobs and inequality", highlights the importance of accelerating the structural transformation of Africa's economies.

The Report furthermore states that growth in Africa has not created enough decent jobs. Today, 282 million people are in precarious jobs. At this rate, 66% of jobs will remain vulnerable in 2022, a rate well above the target of 41% for 2023. This, while the population of the continent is increasing very rapidly – a quarter of the world population will be African here to 2050. The report also highlights the need to increase productivity: African firms are lagging behind globally in sectors with high job-creation potential, such as agribusiness, construction, leather, food and agriculture. light manufacturing industry and logistics services

Finally, growth in Africa has a smaller effect on reducing inequalities and improving well-being than elsewhere in the world. If the Gini coefficient of the African continent had dropped by an additional 7 points to 35 – that is, the current level in Asia – the growth would have taken 130 million more people out of poverty for the 1990- 2016. Despite a decline in extreme poverty, it still affects 35% of the population on the continent or 395 million people.

The report also reveals the contrasting performance of different regions in Africa in terms of growth, employment and inequalities.

· East Africa has enjoyed stronger and more resilient economic growth than other regions, more than 4% per year since 1990, thanks to a more diversified economy.

While underemployment and vulnerable employment characterize the majority of African labor markets, some countries in North and Southern Africa also face high structural unemployment.

· In Central Africa, the number of jobs in the formal sector has been declining since 2015.

· East and West Africa managed to reduce their extreme poverty rates by 23 and 12 percentage points respectively between 1990 and 2013.

· Southern Africa is the most unequal region in Africa, accounting for six of the world's ten most unequal countries in terms of income.

The report highlights that public action is the key to better performance in terms of growth, employment and inequalities: national strategies are more effective when they promote good inter-sectoral coordination of government action, active participation of economic actors and citizens, and territorialized approach to development.

"Faced with its challenges, Africa has important badets: a young and enterprising population, changing territories with growing campaigns and rapid urbanization, considerable natural resources, dynamic economies, rich people ecosystems, a solidarity diaspora. But in too many cases, public policies have failed to mobilize these badets effectively. The implementation of the Agenda 2063 reform agenda requires increased government capacity, accountability, transparency and coordination, and the promotion of good institutional action, "said Victor Harison, Commissioner for Economic Affairs. CUA, at the launch of the report.

Dynamics of Development in Africa 2018 propose ten priority strategic actions in three axes – economic, social and institutional – to realize the development objectives set out in Agenda 2063.

This first report will give rise to another report in 2019.