AfDB Special Coverage

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Even though Africa is reputed to a continent with the fastest rate of economic growth, participants at seminar in Marrakesh, Morocco, all agree that the growth is not reflected in the quality of life of the people

|  By Maureen Chigbo, Marrakesh, Morocco  |  Jun. 10, 2013 @ 01:00 GMT

THE paradox underlying Africa’s economic growth was brought to the fore at the formal opening of the annual general meeting of the African Development Bank, AfDB, May 30, in Marrakesh, Morocco. All the African leaders who spoke outlined the fact that even though Africa has recorded a steady growth over the years, it has not reflected in the quality of life of the majority of its people. From Mahammed VI, King of Morocco, to Ali Bongo, president of Gabon, Nizar Baraka, Moroccan minister of finance and chairman of the board of governors, and Donald Kaberuka, all agreed that Africa has made progress but needs to be transformed for it to be meaningful for its people.

The leaders all agreed that even though the economies are growing, the rate of growth is still lower than the seven percent which is needed and which must be sustained for probably two decades. It is true that our economies are growing, but so is our population. Between 10 and 12 million young people enter the labour market each year. Africa has booming cities, skycrappers, but also millions of destitute people, eking out a living in teeming slums and shanty towns.

Africa also has hundreds of young, energetic people in the diaspora returning home, and also fleeing migrants in rickety boats making the often merciless journey across the Mediterranean sea. There are also entrepreneurs and creative artists displaying their talents, but also desperate unemployed young people who are educated but who have little prospects of a decent job.

According to Kaberuka, “We have a growing middle class, but also peasants still farming with back breaking hoes, much as their grandparents did. Fewer than 25 percent of Africans have access to financial services. Africa is a continent which has cut its infant mortality by half, but which still has 52 million children out of primary and secondary schools in sub-Saharan Africa. It has a huge infrastructure deficit and an equally large skills gap.”

That notwithstanding, Kaberuka has pointed out that for the first time in a generation, there is a consensus that Africa has defied pessimists. Except for the few countries at war or in transition, economic output in Africa is back to the level it was before the financial crisis. In his speech titled: ‘Africa’s hour: Seizing the Momentum,’ Kaberuka said that for the first time, “Africa’s per capital GDP has crossed the $1000 barrier. Infant and maternal mortality is down by half. Life expectancy is up from 40 to 60 years. There are more children in school than at any time in the recent history. Seven out of 10 Africans own a mobile phone. Absolute poverty is on the decline.

“Africa’s young talents in the diaspora are returning in large numbers. Somalia is on the mend and the crisis in the Sahel is on the way to containment. Four-fifths of the peoples of Africa are living in countries where there is peace, stability and strong economic growth. While that reflects only 36 countries out of the 54 countries of Africa, it is where Africa’s population is concentrated.

“Investor’s risk appetite has changed in a significant way. They have learned to assess the real risks – whether political, economic or social – on the basis of evidence and not on in-built bias. They measure the reality in Africa just as they do everywhere. They have learned how to price and mitigate those risks,” he said.

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