Africa will become global economic growth pole next year
Tag: Africa economic, Africa economic growth
Summary: Prof. Emmanuel Nnadozie, a senior official of the ECA outlined the arguments, stating why the organisation believes that Africa can become the next pole for global growth.
The continent is endowed in rich natural resources including minerals, forests, oil and has an array of competent human resources that when harnessed would effectively, fully catapult the continent into sustainable growth.
Prof. Emmanuel Nnadozie, a senior official of the ECA outlined the arguments, stating why the organisation believes that Africa can become the next pole for global growth.
Firstly, he however, admits that despite the optimism, global economic crises and the resultant economic recession in the rest of the world are bad for economic and social progress in Africa.
“Weaker global growth and continued Euro zone debt crisis present Africa with serious challenges and have led to a slowdown of Africa’s growth momentum. Economic growth in Africa declined from an average of 5.6 in 2003-2008 to 2.2 in 2009, 4.6 in 2010 and 2.8 in 2011”, he said.
Secondly, he argues that as a result of the global situation, “it is in Africa’s interest to have a high performing global economy because a strong and growing global economy will benefit Africa through increased trade.
financial flows Foreign Direct Investments (FDI)” as well as in Overseas Development Assistance (ODA) and remittances, which are necessary for growth, employment and poverty reduction.”
fourth,an Africa that joins the ranks of global growth poles will benefit both Africa and the rest of the world. It will generate higher incomes in Africa and enable the continent to tackle such nagging problems as youth unemployment and poverty while at the same time contributing to increased global demand for goods and services and ultimately to global economic recovery. Moreover, the idea is consistent with Africa’s interest in reducing its marginalization in the world as articulated in the African Union’s NEPAD.”
Fifthly, according to Prof. Nnadozie, “becoming a growth pole involves a growth imperative and a structural imperative.
For Africa to become a growth pole, the size of the economy should be large enough and its growth rate high enough and sustained for a reasonably long period.”
The experts are discussing among other issues, Africa’s integration, harmonisation of statistical data, education, how to harness remittances to the continent’s advantage, gender and youth unemployment and intra-African trade.