Is Africa doing enough to achieve inclusive growth?

Africa's quest for inclusive growth has long been a subject of discussion and analysis. The recent Africa Economic Outlook by the African Development Bank (AfDB) sheds light on the continent's economic performance, raising concerns about inclusivity amidst solid growth. In a recent interview with CNBC Africa, Bismarck Rewane, CEO of Financial Derivatives, shared insights on the key issues affecting Africa's growth trajectory. Rewane highlighted the need for policies that promote equitable and diversified growth, emphasizing that mere economic growth does not automatically translate to reduced poverty and inequality. He pointed out that growth alone is not enough to address the fundamental causes of insecurity in many African nations and underscored the importance of accelerating sustained and inclusive growth to tackle income inequality and promote development. The report from AfDB revealed that Africa is projected to grow at 3.9% next year, outpacing global growth rates, with seven of the ten fastest-growing economies in 2020 located in Africa. Regional disparities in growth were also noted, with South Africa leading the pack, followed by North Africa, West Africa, and Central Africa, while resource-intensive countries like Nigeria, South Africa, and Angola lag behind due to their slow growth rates. Despite the positive growth outlook, the AfDB report cautioned that Africa needs to do more to match the pace of population growth and bridge the existing gap. The issue of debt levels in Africa was also highlighted, with concerns raised about the negative correlation between incremental debt and total factor productivity. Rewane stressed the importance of borrowing for productive projects to drive economic growth and sustainability. Shifting focus to Nigeria, Rewane discussed the challenges facing the country in achieving inclusive growth, particularly in sectors like power, human capital, infrastructure, and monetary policy. He pointed out the need for bold reforms and improved governance to attract investments and drive economic progress. The recent move by the Transmission Company of Nigeria to address failures in the power sector reflects ongoing efforts to enhance efficiency and reliability. Additionally, concerns were raised about the US travel ban list, which cited security and inadequate information sharing as reasons for including Nigeria. Rewane highlighted the importance of effective communication and meeting international benchmarks to address security concerns and improve investor confidence in Nigeria. The interview also touched on Lagos' directive targeting tricycles and motorcycles in a bid to reduce accidents and enhance urban transport. While recognizing the need for safety measures, Rewane emphasized the importance of enforcing existing traffic laws to improve road safety and efficiency. As Africa strives for inclusive growth and development, policymakers and stakeholders must address key challenges, prioritize sustainable investments, and implement bold reforms to drive economic prosperity and reduce inequalities. By fostering a conducive business environment, enhancing governance practices, and promoting innovation, Africa can unlock its full potential and achieve inclusive growth for all its citizens.