Nigeria, SA financial performance in 2020 weakens Africa’s economic growth — World Bank

World Bank president, David Malpass, has said that three of Africa’s biggest economies – Nigeria, South Africa and Angola weak performance since the start of the year has affected foreign investment flow into Africa at large.

Malpass said this in his article titled ‘Africa needs to seize this golden chance’.

Another challenge he identified was that cross-border trade and investment, which are vital for growth, are not making enough progress to lift Africa’s average growth rate, saying that vested interests are at the core of both challenges.

He identified four areas that need urgent attention, the first being reforming state-owned enterprises and de-monopolizing markets for greater competition.

“For many nations, the government footprint remains excessive, crowding out private-sector activity in agriculture, transport, and energy”.

He said Africa needs to reduce barriers to cross-border trade.

“Red tape and excessive regulation keep goods, services, ideas, and resources from flowing freely among countries. More intra-regional trade can generate pressure and resources for improved infrastructure”.

He said government debts and investments need to be more transparent.

This will give people more voice in the contracts and commitments made by their governments, a critical basis for implementing the rule of law.




     

     

    And finally the region must address “learning poverty”. “Our recent study reported on children’s ability at the age of 10 to read a basic story.

    In some African countries, as many as 80 percent can’t do this. UK leaders, including the Prime Minister, have strongly supported programs to keep girls in school long enough to learn skills and break out of poverty”.

    The report states that “growth has been robust in non-resource-intensive countries in the region, particularly Rwanda and Uganda, supported by public investment. In Benin, Côte d’Ivoire and Rwanda, good harvests have boosted agricultural growth.”

    “As donors and investors, we can all agree that the time for Africa is now. We must not wait for every economic condition to be perfect. Let’s seize the moment and start delivering immediate wins that can rapidly transform economies and improve people’s lives,” Malpass said.

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