Economic Report on Africa 2014

The Economic Report on Africa 2014, a joint publication from the United Nations Economic Commission for Africa (ECA) and the African Union Commission (AUC) has been released.

“The Economic Report on Africa 2014 – Dynamic Industrial Policy in Africa: Innovative Institutions, Effective Processes and Flexible Mechanisms adopts an institutional approach to show how industrial policy can be designed and implemented. Based on various successful country experiences from inside and outside the continent, and on 11 African country studies the report calls on African countries to adopt dynamic industrial policies with flexible processes and mechanisms that will help them transform their economies and bring about inclusive and sustainable economic and social development.” 

Economic Report on Africa 2014 – Key Messages

Economic Report on Africa 2014 – Forward

“Africa’s recent impressive economic performance continued despite subdued global economic activity and is expected to accelerate further in the medium term. Africans are eager to see this growth sustainable accelerated and translated into new employment opportunities, secure incomes and improved livelihoods. But the growth so far has not been inclusive, and structural transformation on the continent remains limited. Africa’s commodity-and investment-driven expansion has not created the jobs to meet the continent’s growing young population, and this growth path has left the continent vulnerable to external commodity prices, demand shocks and internal weaknesses.

Industrialization is key for Africa to foster structural transformation and improvement in standards of living. Yet industrialization has remained elusive, with an embryonic manufacturing sector, low productivity and marginal participation in domestic and international markets. While services have surpassed agriculture and industry as the leading income-generating sectors a cross Africa, this has not created the quantity or quality of jobs likely to result from manufacturing and labour-intensive production.

The 2014 Economic Report on Africa builds on the previous year’s report, which made the case for commodity-based industrialization. It calls on the continent to refocus its economic development strategies on industrialization, particularly on the means for formulating and implementing effective industrial policy. In the past, most African countries pursued industrial policy with mixed results. It is now time to reacknowledge that state support is vital to address market failures and spur industrialization—and to institutionalize industrial policy in national and regional development strategies at the highest levels of government Yet the state’s role is different from a direct producer of goods.” 

Economic Report on Africa 2014 – Forward

The Economic Report on Africa 2014 is separated into 5 chapters:

  1. Recent economic and social developments in Africa and medium-term prospects
  2. The source of growth for Africa’s structural transformation
  3. Industrial policy in Africa: Institutional Dynamics and Challenges
  4. Examples of Africa’s industrial policy processes and institutional dynamics
  5. Towards a dynamic industrial policy framework for Africa

To read the full report visit: Economic Report on Africa 2014

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