Shared benefits require bold economic reforms in Africa

KIGALI, Rwanda,** November 3, 2012/ *– *Participants
at the closing session of the seventh African Economic Conference , on
November 2, 2012 in Kigali, Rwanda, urged African leaders to put in place
bold economic reforms, aimed at sustaining growth and boosting human
development. ****

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The four-day conference highlighted the need for policy-makers to create
diversified economies capable of generating employment, implementing better
social policies and inclusive growth. Participants agreed that good
governance and fair competition will help Africa meet its sustainable
development agenda. Carefully calibrated government support can help
fulfill Africa’s economic potential, reducing political risks and
bolstering financial accountability to open new markets. ****

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Africa has become the world’s second-fastest growing region. Hosting the
AEC for the first time, Rwandan President Paul Kagame said that in this era
of economic uncertainty, the world has high expectations for the African
continent. ****

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According to the African Economic Outlook 2012, economic growth across the
African continent is expected to rebound from 3.4% in 2011 and accelerate
to 4.5% in 2012 and 4.8% in 2013.****

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“Some countries have even done better than these statistics depict. And
because some countries from other continents show signs of economic
stagnation, commentators have been inclined to think that this is Africa’s
time,” said Kagame.****

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However the continent’s poverty rates have remained stubbornly high, and
progress on health, education and job creation have been too slow to
accommodate its fast-growing population. These challenges are likely to
become more difficult to tackle in the current global economic environment.*
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“Rich countries are very much concentrated on their own immediate problems
to fix,” said Donald Kaberuka, President of the African Development Bank.

“As we can see from the trade and climate negotiations, there is limited
appetite for the multilateral solutions, so we need to trade our way out of
poverty and deal with the impact of climate change.”****

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During the closing press conference, Mthuli Ncube, Chief Economist and Vice
President of the African Development Bank, said that “Africa can have a
brighter future, and has the potential to become the next emerging market
by the end of this decade if political, social protection, quality
education, private sector and regional integration are implemented.” ****

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Ncube urged each and every one “to see inclusive growth in action in
Africa.” He also affirmed that the continent’s long-term growth prospects
are strong, propelled by both external trends in the global economy and
internal changes in the continent’s societies and economies.****

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He also said investment in infrastructure will promote regional integration
and trade, creating an environment that is more conducive to economic
growth, the development of markets and paving the way for an acceleration
in human development.****

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“Deliberate policy measures and targeted investments are needed to make
growth not just fast, but also inclusive and sustainable,” said UNDP
Administrator Helen Clark, who opened the conference along with Kaberuka on
October 30. She added that “the rising tide is capable of lifting every
boat.”****

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One of the running threads of the conference was how to use natural
resources to create economic benefits for ordinary citizens. The
discussants said African countries can raise money by negotiating
international contracts from a position of strength, using proceeds from
land and mineral deals to invest in rural infrastructure, diversify the
economy and boost human capital. ****

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“If politically the leadership is right, there is no doubt that leadership
will focus on inclusion in almost everything it does,” said the former
President of Nigeria, Olusegun Obasanjo.****

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The 2012 AEC meeting was also marked by an award for the best paper of the
conference submitted by an African under the age of 40. Forty-three papers
were shortlisted out of 500 submissions. Dick Nuwamanya Kamuganga’s paper,
titled, “Does Intra-Africa Regional Trade Cooperation Enhance Export
Survival?” met the selection criteria set out by the African Economic
Research Consortium, in terms of methodology and policy relevance.****

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Organized each year by the Economic Commission for Africa (ECA), the
African Development Bank (AfDB) and the United Nations Development
Programme (UNDP), the conference brought together some 500 participants
under the theme “Inclusive and Sustainable Development in an Age of
Economic Uncertainty”. ****

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