In a global context marked by multiple global crises since the emergence of Covid-19 in 2020, Africa has shown resilience. Amid headwinds, the continent continues to show positive economic growth. According to the African Development Bank’s Africa’s Macroeconomic Performance and Outlook, the continent’s real gross domestic product (GDP) could expand by an average of 4% in 2023-2024. This is above the global averages of 2.7% and 3.2%.
The report shows that 53 of the Bank’s 54 African member countries increased their GDP in 2022, which could continue in the next two years. The additional wealth created is expected to exceed 5% in several countries, including the Democratic Republic of the Congo (6.8%), The Gambia (6.4%), Togo (6.3%), Libya (12.9%), Mozambique (6.5%), Niger (9.6%) and Senegal (9.4%). Even so, apart from climate risk, many challenges remain, such as poverty and inequality, which, albeit declining, remain a concern.
The African Development Bank is dedicating its 2023 Annual Meetings, scheduled for 22 to 26 May in Sharm El Sheikh, Egypt, to “Mobilizing Private Sector Financing for Climate and Green Growth in Africa.” The stakes are high. If Africa achieves inclusive growth and sustainable development, it will lift millions out of poverty and provide a better future for its citizens.
These cross-cutting issues are the priorities of the Bank, which has committed to supporting African countries to achieve inclusive growth and sustainable development through its ‘High 5’ strategic objectives: ‘Light up and power Africa,’ ‘Feed Africa,’ ‘Industrialize Africa,’ ‘Integrate Africa’ and ‘Improve the quality of life for the people of Africa.’
The Bank has dedicated one of 3 Knowledge Events during the Annual Meetings to exploring answers to the findings of a group of experts examining key sectors that contribute to inclusive growth and sustainable development in Africa, particularly low- to middle-income countries, transition states, and resource-intensive and net oil-exporting countries.
Financing is a critical issue that will dominate discussions at Sharm El Sheikh. Today, African countries’ capacities to mobilize domestic resources are limited partly due to poorly diversified economies, the persistence of illicit financial flows, difficult access to international capital markets, and, above all, the disproportional concentration of global development resources. That is why the African Development Bank advocates for greater deconcentration of official development assistance and a greater role for regional multilateral development banks.
Participants will discuss how to ensure more robust nominal growth, develop a financial sector that serves local businesses, and define a debt strategy for African countries to enable them to have the fiscal space to mobilize more resources.
Achieving an inclusive and sustainable future for the people of Africa is a complex challenge. The African Development Bank advocates for a holistic approach and the involvement of all stakeholders. Governments, the private sector, civil society, and international partners are at the forefront. The Sharm El Sheikh discussions provide another opportunity to strengthen the mobilization of ideas and move forward on solutions to serve this ambition.
