Optimism Meets Realism as Africa Seeks Ways to Maintain Growth

Conference stresses importance of jobs to Africa’s rapidly growing population

Event’s focus includes finding financing for Africa’s infrastructure gap

Reduce rural poverty through suitable technology in agriculture sector

That combination of optimism and realism was at the heart of the conference, entitled “Africa Rising: Polices for Sustained and Inclusive Growth” that was held during the 2014 IMF–World Bank Spring Meetings.

Participants discussed some of the core issues that must be addressed if sub-Saharan Africa is to continue building on the strong growth that has transformed its economic prospects. Several speakers noted that Africa faces the task of sustaining its growth momentum while industrial countries try to pull out of recession and despite slowing growth in emerging markets, whose demand and investment flows have been supporting Africa’s growth.

The event addressed three of the key issues on Africa’s agenda: inclusive growth, structural transformation and economic diversification, and scaling up public investment. Panelists included academics who specialize in the priorities facing the region, and officials involved in defining economic policies in sub-Saharan Africa.

“Africa will continue to rise in the next decade and the next 100 years,” said IMF Deputy Managing Director Min Zhu in remarks opening the seminar. “Now it is our job to ensure that ‘Africa Rising’ is a sustainable story.”

Sense of self-confidence

Benno Ndulu, Governor of the Bank of Tanzania, offered a succinct view of the current perspective on Africa’s achievements and hopes. The strong growth “experience over the past 19 years has changed attitudes and given a sense of self-confidence,” he said. “Hopefully this is not complacency.” Some African governments are undertaking fiscal consolidation after a period of counter-cyclical spending in response to the 2008 global financial crisis. “The question is how fast we can proceed on consolidation,” Ndulu said.

The inclusiveness of growth is an issue underlying many of the core policy challenges facing sub-Saharan Africa. It is also expected to feature in the IMF’s forthcoming Regional Economic Outlook for Sub-Saharan Africa, to be released on April 24. Francisco Ferreira, the World Bank’s Chief Economist for Africa, highlighted a distinction between the economic growth of the region over the past 15 years and its per capita growth performance, which has been roughly in line with the rest of the developing world...