Discussion paper: Why are sub-Saharan economies not growing sustainably?
High GDP growth rates sustained across sub-Saharan Africa throughout the 2000-2012 “long decade” led some to claim that a process of economic transformation took place across the continent. However, the reality was very different with strong external drivers and weak domestic policy responses causing a deterioration in the competitiveness of agribusiness and manufacturing.
A breakdown in the favourable external environment since 2013 has exposed the need for major policy shifts, beyond simply restoring macro-economic balance. However, this will only be possible when host governments fully appreciate the nature and magnitude of the challenges their economies face and are willing to effect the necessary changes. At present too many have looked at the headline GDP growth rates and assumed wrongly that all is well.
The paper can be accessed here.
Keith is EfD’s Chair of Trustees.