Saturday, May 28, 2022

Botswana’s shows worst economic deterioration – study

Botswana is among African countries with the worst deteriorations in economic growth ÔÇô the 2014 African Transformation Report has revealed. According to the report, much of Africa’s celebrated growth is vulnerable, citing that the continent is growing but not transforming.

The report highlights that most African economies rely heavily on mining and oil but when discounted, some of the continent’s apparent economic powerhouses remain languishing, and failing to create jobs or opportunities for a growing youth population. This could lead to future political or social unrest.

Nigeria and Ghana rank respectively 3rd and 6th from the bottom in the report’s African Transformation Index, which assesses 21 Sub-Saharan countries on economic transformation. The top-ranking countries are Mauritius, South Africa, and Cote d’Ivoire.

The index reveals that many African economies are growing faster than they have in 40 years. For instance, six of the world’ s 10 fastest growing countries in the 2000s were in Sub-Saharan Africa.
According to the findings of the report, Uganda, Mozambique, and Rwanda made the most progress on transformation, each improving its rank by three places or more. Kenya, Madagascar, Malawi, Cote d’Ivoire, Tanzania, and Ethiopia improved their rankings by one or two places.

The worst deteriorations were in Ghana and Botswana. Ghana fell seven places, and Botswana five places, between 2000 and 2010. Burkina Faso, Cameroon, Senegal, and Zambia also dropped in rankings. The report draws on the African Center for Economic Transformation (ACET) research program of country, sector, and thematic studies to look systematically at transformation as a broad framework for economic growth and development.

It introduces the African Transformation Index to help African policymakers see how their countries are transforming and where they stand in relation to their neighbors.

Headquartered in Ghana, West Africa, ACET is an economic policy institute supporting Africa’s long-term development.

ACET President K.Y. Amoako, who presented the report, said that Africa has made great progress in recent years, but the report shows that current growth patterns are not sustainable and will not drive development or equality.

“Africa needs growth with depth, namely, diversification, export competitiveness, increased productivity, and technological innovation, all leading to human well-being. Only then will the continent truly transformation,” he emphasized.

At the event, panelists discussed the report’s findings, including its comparison of Africa’s performance with that of eight earlier transformersÔÇöBrazil, Chile, Indonesia, Malaysia, Singapore, South Korea, Thailand, and Vietnam, and the lessons that can be drawn.

Mthuli Ncube, the Chief economist and Vice President of the AfDB said that leadership is critical on Africa continent because it is the engine for the continent’s growth. Lin Yifu, former chief economist and senior vice president of the World Bank said African economies should invest heavily in labor-intensive manufacturing sectors to fast-track the structural transformation of the Africa continent.

“For Africa to achieve total economic transformation much is needed to invest in labor-intensive industrialized sectors to create jobs for the millions of unemployed young people on the continent,” said Lin.

He emphasized that the most important element for African development is creating jobs, notably in labor-intensive sectors.

Lin said China will release 150 million labor intensive jobs and forward-looking African governments are in a position to get half of them.

He highlighted China’s journey to achieve economic and structural transformation, urging African governments to draw lessons from the Asian economic giant.

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