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Ph: DR: Adam Elhiraika, Director of Macroeconomic Policy Division at ECA
With slower economic growth and high inflation, many African countries are struggling to continue to bolster the continent’s development after suffering a series of severe and mutually reinforcing shocks. Adam Elhiraika, Director of the Macroeconomic Policy Division at ECA, explained that the COVID-19 pandemic, the Ukrainian war and the resulting food and energy obstacles, rising inflation, tighter debt and natural disasters have led to serious development problems on the continent, such as poverty. and inequality rates and the lack of decent jobs.
Elhiraika was presenting an overview of recent economic and social conditions in Africa at the ongoing 41st Meeting of the Committee of Experts in Addis Ababa, ahead of the 2023 Conference of African Ministers of Finance, Planning and Economic Development. “In Africa, growth fell from 4.6% in 2021 to 3.6% in 2022,” he said.
According to the ECA, in 2022, 18 million additional new poor will appear in Africa. The continent had more than half of the highest proportion of poor people in the world at 54.8%. This is alarming as 546 million people lived in poverty last year, more than half of the continent’s population.
Women and girls remain particularly vulnerable and the continent faces a potential reversal of hard-won gains in gender equity.
Another challenge highlighted during the meeting is inequality which remains pervasive in all African sub-regions and is particularly high in Southern Africa.
Of the top ten countries with the highest wealth inequality, 7 of them (South Africa, Mozambique, Namibia, Zambia, Botswana, Angola, Malawi) are in the Southern Africa region, while 2 are in West Africa (Guinea-Bissau, Sao Tome)
The ECA estimates that although the economic outlook remains bleak, Africa is expected to grow by 4.1% in 2023. However, the Commission warns that this growth could face headwinds, particularly with an unfavorable external environment. created by the recession in the United States and the euro zone and which should weigh on commodity prices.
“Fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities” is the theme of the ongoing meeting in Addis Ababa where countries have been urged to pursue pro-poor and inclusive macroeconomic policies and ensure the access to finance for an inclusive recovery.
