Africa’s economies
are growing strongly, but growth alone cannot meet the needs of the continent’s
poorest citizens, because “nobody eats GDP,” the African Development Bank’s
President, Akinwumi Adesina, said last week as he unveiled the Bank’s flagship
economic report.
The 2020 African Development Outlook (AEO)
showed that the continent’s economies are growing well, higher than the global
average. The report projected a steady rise in growth in Africa from 3.4% in
2019 to 3.9% in 2020 and 4.1% in 2021.
According to the report, these figures do not
tell the whole story. Across the continent, the poor are not seeing enough of
the benefits of robust growth. Relatively few African countries posted significant
declines in extreme poverty and inequality, which remain higher than in other
regions of the world.
Inclusive growth occurred in only 18 of 48
African countries with data, the report revealed.
According to Adesina, “Growth must be visible.
Growth must be equitable. Growth must be felt in the lives of people.”
The theme of the 2020 Africa Economic Outlook
report, Developing Africa’s workforce for the future, calls
for swift action to address human capital development in African countries,
where inclusive growth has been held back by a mismatch between young workers’
skills and the needs of employers.
The bank’s flagship report states that increased
investments in education is key as well as progressive universalism in
education spending—setting high priorities for the poor and disadvantaged and
focusing on basic education first where social returns are highest. Its
recommendations include improving access to education in remote areas,
incentives such as free uniforms and text books, banning child labour and
improving teaching standards.
To better match skills with job opportunities,
the report recommends that governments need to develop a demand-driven
education system in tune with rapidly emerging jobs in the private sector,
including software engineers, marketing specialists and data analysts, the
report says.
“Africa is blessed with resources, but its
future lies in its people…education is the great equaliser. Only by developing
our workforce will we make a dent in poverty, close the income gap between rich
and poor, and adopt new technologies to create jobs in knowledge-intensive
sectors,” said Hanan Morsy, Director of the Macroeconomic Policy, Forecasting
and Research Department at the Bank.