…The reports give deeper country-by-country specific dynamics and insights
…In summary, these reports contain pragmatic policies (short, medium and long-term) to accelerate African countries’ economic growth and structural transformation
TUE JULY 30 2024-theGBJournal| The African Development Bank Group (AfDB) today announced the launch of a Country Focus Reports designed to deepen policy dialogue on the macroeconomic performance and outlook of individual countries and to act as an indispensable tool for policy makers, government and development partners.
The reports, in line with the theme of the 2024 African Economic Outlook report titled, “Driving Africa’s Transformation: The Reform of the Global Financial Architecture,” give deeper country-by-country specific dynamics and insights.
The African Economic Outlook report, issued annually, provides timely evidence and analysis on the continent’s growth, empowering African policymakers to make informed decisions.
Growth performance and outlook vary across the 54 African countries of the report, reflecting differences in economic structure, commodity dependence, and policies.
The 2024 reports assess the experiences of individual countries in accessing finance necessary to fund their structural transformation and call for an overhaul of the global financial architecture to help turn around African economies.
Prof. Kevin Chika Urama, Chief Economist & Vice President for Economic Governance and Knowledge Management at the African Development Bank Group said: “The reports make bold recommendations for financing structural transformation at country level through reforms of the global financial architecture to better respond to African countries’ growing development financing needs, exacerbated by recurrent global and domestic shocks.”
All 54 reports document funding needs and gaps as well as inadequacies of the current global financial system in supporting Africa’s structural transformation up to 2063. The reports make recommendations across five key areas:
Leveraging Private Sector Financing: The private sector will remain a key partner in financing African economies. Countries need allow greater private sector participation in the economy to complement public investments, particularly in areas with high social returns such as climate action and human capital development.
Ramping up climate finance: African countries contribute the least to climate crisis, yet they are the most affected. Reforming the global climate finance architecture to strengthen coordination and facilitate access for African countries to climate finance will be key.
Reforming Multilateral Development Banks (MDBs): Multilateral Development Banks need to revise their business models to provide long-term concessional financing at scale to African countries. They need to bolster their capital positions, work on rechanneling a portion of the International Monetary Fund’s Special Drawing Rights (SDRs) and ensuring that countries with the most need get the most funding.
Reforming debt resolution mechanisms: The existing debt resolution mechanisms such as the G20 Framework are not very responsive to the needs of African countries that need them. The reports recommend radical reforms for speedy debt workouts and sustainable debt management, including innovative market-based solutions, debt relief for climate action, and sovereign debt authority systems.
Enhancing domestic resource mobilization: The reports call upon African counties to look inwards as they seek to finance their structural transformation. The importance of strengthening domestic revenue mobilization through improved tax policies, enhancing efficiency in government revenue collection and utilization, combatting illicit financial flows and tax avoidance, and leveraging Africa’s abundant natural resources will remain key.
In summary, these reports contain pragmatic policies (short, medium and long-term) to accelerate African countries’ economic growth and structural transformation. They also provide governments and potential investors with up-to-date, accurate data to inform policy and investment decisions.
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