Africa has capacity to grow a robust single market like China and India: American academic

Johannesburg, Feb 19 (PTI): The African continent has the capacity to achieve 7-10 per cent yearly growth by taking advantage of its population to grow a robust single market, as China and India have done, a prominent American economist and academic has sai.

Africa has capacity to grow a robust single market like China and India: American academic

Johannesburg, Feb 19 (PTI): The African continent has the capacity to achieve 7-10 per cent yearly growth by taking advantage of its population to grow a robust single market, as China and India have done, a prominent American economist and academic has said.

The remarks by Prof Jeffrey Sachs came at the 36th African Union (AU) Summit in Addis Ababa on Saturday.

"Building a single market will enable Africa to position itself among the three largest global marketplaces. The continent has the greatest growth potential,” he said, challenging African leaders to build vital regional infrastructure and close the infrastructure gaps over the following decades.

"Africa has the capacity to achieve 7-10 per cent yearly growth by taking advantage of its population to grow a robust single market, like China and India (have done)," Sachs said.

Sachs urged governments to lead a revolution to bring about affordable access to health care and education.

He also called for greater financing for the continent to place it on a sustainable growth trajectory, citing the critical role of the African Development Bank (ADB) in meeting the continent’s financial needs.

Acting Chief Economist and Vice President of the ADB, Prof Kevin Urama, explained the importance of the report ‘Africa’s Macroeconomic Performance and Outlook 2023’ which was presented at the Summit.

“Today, global macroeconomic conditions have become increasingly uncertain due to multiple overlapping shocks that make policymaking and investment decisions very challenging. Countries need regular diagnostics and focused policy actions to address these recurring and overlapping shocks,” he said.

Urama affirmed that Africa remains the place to invest despite suffering global shocks.

The bi-annual report offers policymakers, global investors, researchers, and other development partners up-to-date, evidence-based assessments of the continent’s recent macroeconomic performance. It also provides a short-to-medium-term outlook.

The report says that the lingering effects of the Covid-19 pandemic, the ravages of accelerating climate change, and the impact of rising geopolitical conflicts and tension had slowed Africa’s growth to an average of 3.8 per cent in 2022.

“To sustain growth, Africa’s economies will require comprehensive information and insights to navigate a labyrinth of intertwined global risks, the report added.

The ADB will release the report in the first and third quarters of each year to complement its flagship Annual African Economic Outlook.

The African Development Bank is the first institution to release a macroeconomic outlook for Africa for 2023.

African leaders have pledged to take immediate action to integrate the recommendations from the report into their national development plans. PTI FH NSA

(This story is published as part of the auto-generated syndicate wire feed. No editing has been done in the headline or the body by ABP Live.)