Don’t confuse Africa’s economic growth with economic transformation – Kaberuka
Africa has been asked not to confuse its recent economic growth with economic transformation.
Panellists at the 2012 World Economic Forum (WEF) on Africa in Addis Ababa, Ethiopia, believe that economic growth does not necessarily transform economies.
They proclaimed economic growth alone is not sufficient to build Africa.
“We should not confuse economic growth with economic transformation,” said Donald Kaberuka, President, African Development Bank (AfDB), at the Opening Plenary of the forum.
According to him, Africa has experienced the best decade of the past 50 years, but there are still challenges that need to be tackled.
“The structure of African economies has not changed fast enough and countries remain vulnerable to external shocks. Public policy choices should target ways to leverage wealth from natural resources for broad-based, sustainable growth,” Kaberuka said.
According to a WEF press release, Kaberuka identified two key drivers for the future – the education of children of the poor as a tool to address generational change, and the development of small and medium enterprises to close the wealth gap.
Mr Kofi Annan, Chairman, Alliance for a Green Revolution in Africa said government policies need to create equal access to opportunities to avoid dissatisfaction in the future. “We cannot talk of growth when millions of people are left behind,” he stated.
Adding his comments, Gao Xiqing, President and Vice-Chairman, China Investment Corporation, said Africa has a blank sheet of paper before it and is in a position to create a new template for its future.
However, Xiqing noted it is important for African countries to ensure their growth is also as inclusive as possible, learning lessons from China, which has prioritized growth over development and is now facing challenges such as huge wealth inequality and environmental problems.
For Bekele Geleta, Secretary-General, International Federation of Red Cross and Red Crescent Societies, the mindset within Africa is changing and Africans increasingly want to shape their own lives and actively engage in their future.
Monhla Hlahla, Chairperson, Industrial Development Corporation of South Africa (IDC), South Africa, believes that strong and decisive leadership is needed to keep African development on track. “Africa needs leaders that are predictable and consistent, and that are able to move Africa up the value chain,” said Hlahla.
The World Economic Forum on Africa ends today May 11, 2012. Over 700 participants from more than 70 countries are taking part. Under the theme “Shaping Africa’s Transformation”, the meeting’s agenda will integrate three pillars: Strengthening Africa’s Leadership; Accelerating Investment in Frontier Markets; and Scaling Innovation for Shared Opportunities.
By Ekow Quandzie