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Economic development in Africa Report 2014

Investment is a major driver of long-run growth and development. It is necessary to build productive capacities, transform the structure of economies, generate employment and reduce poverty. Over the past decade, African countries have had relatively good economic growth performance. But average investment rates on the continent remain low relative to what is considered necessary to achieve national development goals. They are also low relative to the average rate for developing countries. These facts suggest that Africa’s recent growth may be fragile and that it is unlikely to be sustained in the medium to long term if current trends continue. The key question, then, is how can African Governments catalyse investment for sustained and transformative growth?

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