Africa Set for Moderate GDP Growth
Africa’s general economic performance is continuing to recover with the continent’s gross domestic product (GDP) growth projected to accelerate to 4% in 2019 and 4.1% in 2020.
However, improved macroeconomic and employment outcomes require industry to lead growth, according to the 2019 African Economic Outlook report launched by the African Development Bank (AfDB).
The 2019 report focuses on three key areas – Africa’s macroeconomic performance and prospects; jobs growth; and integration for Africa’s economic prosperity.
AfDB director of macroeconomic policy forecasting and research, Hanan Morsy, said that at the current rate of labour force growth, Africa needed to create about 12 million new jobs every year to prevent unemployment from rising.
“A concerted industrialisation effort that builds on countries’ comparative advantage is required,” he said, adding that manufacturing-driven growth had the highest impact on job creation.
According to the report, “a borderless Africa” was one of the key foundations of a competitive continental market that could serve as a global business centre.
“To develop cross-border supply chains, improving customs management and adopting simple and transparent rules of origin, are essential,” the report said.