Strategy2030

IMF forecasts suggest that 13 of the world’s 20 fastest growing economies over the next five years will be in Africa

Integration is evidently the ultimate rational response to the challenges now facing the continent. The demands for integration are precise; concerned parties must wholly co-operate and fully commit to understanding one another.

Regional integration is a development priority for Africa. All Africans, not just policy makers and decision makers, have a role to play in making integration a reality for the continent.

Integration matters in Africa. It affects what people can buy; the variety of what is on offer at the local market; how easily citizens move between countries; where individuals travel for leisure or for work; how cost-effective it is to keep in touch; where people choose to study or look for a job; how to transfer money to family
or get start-up capital for a business.

Rising commodity prices have been an
important factor behind Africa’s growth
over the last 15 years, particularly in major
oil-exporting countries such as Nigeria
and Angola. However, Africa’s economic
progress has derived from diverse sources
and, according to McKinsey, the large
majority of recent growth has come from
non-commodity sectors. Underlining
this, one of Africa’s fastest growing
economies in recent years has been
Ethiopia; a country with meagre mineral
resources, whose growth has originated
from industries such as manufacturing,
agriculture and construction.

Africa’s growth accelerated from 3.7 per cent in 2013
to 3.9 per cent in 2014, which was slower than had
been forecasted in the 2014 edition of the RECENT ECONOMIC AND SOCIAL DEVELOPMENTS IN AFRICA report.
East and South Asia is the only region that grew
faster than Africa, at 5.9 per cent (figure 1.1). The
growth was underpinned by private consumption
and gross capital formation, supported by improved
governance and macroeconomic management; continued urbanization; a still-rising middle class
that is driving aggregate demand; diversified trade
and investment ties with emerging economies; and
tighter regional integration and trade partnerships
in the region.