News / Africa

African Economies Growing, But Vulnerable

The economic report for Africa prepared by the United Nations Economic Commission for Africa and the African Union Commission has been presented officially in Cameroon.  It predicts that African economies will continue to grow in the next couple of years but dependence on exports could open African economies to shocks.  It also complains of the wealth not being evenly distributed so that all the people benefit.  

The report states that after two decades of economic stagnation, Africa since 2000 has seen a prolonged commodity boom and sustained growth trend.

Hit by the global financial crisis and a steep rise in food and fuel prices in the latter part of the last decade, Africa quickly recovered with a growth rate of 4.6 percent in 2010.

The continent’s growth slipped in 2011 because of political unrest in North Africa, but rebounded strongly to 5 percent in 2012.

Joseph Barichaco, the economic affairs officer at the Central Africa office for the U.N. Economic Commission for Africa, said the boom in Africa economies is mainly commodity driven.  He says it is bolstered by strengthening domestic demand, rising incomes and urbanization, along with increased public spending and foreign investment.

Barichaco says the surprising thing about Africa's growth is that it is not beneficial to all of the people.

"Africa has recorded very good growth performances since a number of years.  However, this kind of growth does not really benefit all the citizens, because they are growth-driven mainly by exports of primary commodities," said Barichaco.

Widespread corruption, especially in extractive industries like oil production and mining, widens the gap between the rich and the poor.

Ndi Richard Tantoh, an official of the Extractive Industries Transparency Initiative (EITI), insists that countries should declare the revenues they receive from oil, gas, and minerals, so that citizens can hold them accountable.

"A kind of norm that will help to put some transparency around resources from this sector, could help people to know what resources they get from their petroleum and extractive industries, and probably they will be able hold their governments accountable for the amounts they received from these companies so that they can make the amounts relevant to the development of the people," said Tantoh.

The U.N. Economic Commission for Africa recommends that more effort be made to add value to the continent's abundant raw materials, through factories and refineries. The U.N.'s Joseph Barichaco says that kind of development will spare the continent from shocks.

"If you start destroying the forest, at a given time you have the problem of climate change.  If you continue depending on oil, at a given point it will be off.  If we transform our economies, we try to diversify our sources of growth, the shock will not be too much," he said.

The report concludes that only when African countries improve market access for their value-added products abroad will it avoid marginalizing itself from the world's economy and achieve inclusive growth.

You May Like

China May Be Biggest Winner From Ukraine Crisis

Missile sales, oil and gas shipments are among many areas that may drive Beijing and Moscow closer together in coming years More

Obama Faces Chaotic World, Limits of Power

Current foreign policy issues bring into focus challenges for US policymakers who are mindful of Americans' waning appetite for overseas military engagements More

SADC Meeting Lesotho Officials to Resolve Stalemate

Official says regional bloc has been engaged with leaders in Lesotho to resolve political disagreement that led to coup attempt More

This forum has been closed.
Comment Sorting
Comments
     
by: Joseph
June 16, 2013 9:24 PM
"The shock will not be too much" so say Joseph Barichaco from the UN. Please enlighten us on what went wrong in Zimbabwe with the land seizures, the collapse of agricuture and the economy as well as the future prognosis.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
West Africa Ebola Vaccine Trials Possible by Early 2015i
X
Carol Pearson
August 30, 2014 7:14 PM
A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.
Video

Video Cost to Raise Child in US Continues to Rise

The cost of raising a child in the United States continues to rise. In its latest annual report, the U.S. Department of Agriculture says middle income families with a child born in 2013 can expect to spend more than $240,000 before that child turns 18. And sending that child to college more than doubles that amount. VOA’s Deborah Block visited with a couple with one child in Alexandria, Virginia, to learn if the report reflects their lifestyle.
Video

Video Chaotic Afghan Vote Recount Threatens Nation’s Future

Afghanistan’s troubled presidential election continues to be rocked by turmoil as an audit of the ballots drags on. The U.N. says the recount will not be completed before September 10. Observers say repeated disputes and delays are threatening the orderly transfer of power and could have dangerous consequences. VOA correspondent Meredith Buel reports.
Video

Video Ukraine Battles Pro-Russia Rebel Assault

After NATO concluded an emergency meeting to discuss the crisis in eastern Ukraine, the country is struggling to contain heavy fighting near the strategic port of Mariupol, on the Azov Sea. Separatist rebels are trying to capture the city, allegedly with Russian military help, and Ukraine's defense forces are digging in. VOA's Daniel Schearf spoke with analysts about what lies ahead for Ukraine.
Video

Video Growing Business Offers Paint with a Twist of Wine

Two New Orleans area women started a small business seven years ago with one thing in mind: to help their neighbors relieve the stress of coping with a hurricane's aftermath. Today their business, which pairs painting and a little bit of wine, has become one of the fastest growing franchises across the U.S. VOA’s June Soh met the entrepreneurs at their newest franchise location in the Washington suburbs.
Video

Video Ebola Vaccine Trials To Begin Next Week

The National Institutes of Health says it is launching early stage trials of a vaccine to prevent the Ebola virus, which has infected or killed thousands of people across West Africa. The World Health Organization says Ebola could infect more than 20,000 people across the region by the time the outbreak is over. The epidemic has health experts and governments scrambling to prevent more people from becoming infected. Zlatica Hoke has more.
Video

Video Asian Bacteria Threatens Florida Orange Trees

Florida's citrus fruit industry is facing a serious threat from a bacteria carried by the Asian insect called psyllid. The widespread infestation again highlights the danger of transferring non-native species to American soil. VOA’s George Putic reports.
Video

Video Aging Will Reduce Economic Growth Worldwide in Coming Decades

The world is getting older, fast. And as more people retire each year, fewer working-age people will be there to replace them. Bond rating agency Moody’s says that will lead to a decline in household savings; reducing global investments - which in turn, will lead to slower economic growth around the world. But experts say it’s not too late to mitigate the economic impact of the world’s aging populations. Mil Arcega has more.
Video

Video Is West Doing Enough to Tackle Islamic State?

U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Coalition to Fight Islamic State Could Reward Assad

The United States along with European and Mideast allies are considering a broader assault against Islamic State fighters who have spread from Syria into Iraq and risk further destabilizing an already troubled region. But as VOA State Department Correspondent Scott Stearns reports, confronting those militants could end up helping the embattled Syrian President Bashar al-Assad.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.

AppleAndroid