Economic development in Africa report 2022: rethinking the foundations of export diversification in Africa, the catalytic role of business and financial services

The report examines how African countries can diversify their exports by identifying feasible and innovative mechanisms for investment and trade policies to drive incentives to divert economic activities into transformative sectors. It aims to equip African governments and development partners with knowledge on how to diversify exports and promote structural transformation through the services sector, financial services, and private businesses, underpinned by capable, inclusive, and accountable institutions.

Format: Paperback / softback
Length: 185 pages
Publication date: 29 July 2022
Publisher: United Nations

The report delves into the intricate dynamics of how African countries can navigate the path towards diversifying their exports, leveraging feasible and innovative mechanisms to foster investment and trade policies that stimulate incentives to redirect economic activities towards transformative sectors. Its primary objective is to arm African governments and development partners with comprehensive insights and strategies to diversify exports and drive structural transformation through the vibrant realms of the services sector, financial services, and private businesses, all supported by robust, inclusive, and accountable institutions at the national, regional, and global levels.

The report begins by acknowledging the critical role of exports in driving economic growth and development in African countries. It highlights the need to diversify export portfolios beyond traditional commodities to encompass a wider range of products and services that can cater to global demand. Recognizing the challenges faced by African countries in terms of infrastructure, human capital, and market access, the report proposes a comprehensive approach that combines investment in physical infrastructure, skills development, and policy reforms to create an enabling environment for export-oriented industries.

One of the key recommendations of the report is the promotion of investment in the services sector, which has the potential to create job opportunities, generate income, and promote sustainable development. The report suggests that African countries can leverage their natural resources, cultural heritage, and competitive advantages in sectors such as tourism, healthcare, education, and technology to attract foreign investment and expand their export base. Financial services, including banking, insurance, and investment, are also identified as key drivers of economic growth and diversification. The report emphasizes the need for African countries to develop robust financial institutions, improve access to finance, and promote financial inclusion to support private businesses and entrepreneurs.

Private businesses, in particular, play a vital role in driving economic growth and job creation in Africa. The report highlights the need for government policies and initiatives to promote entrepreneurship, support small and medium-sized enterprises, and create an enabling environment for business growth. It suggests that African countries can foster innovation, encourage research and development, and promote international trade to expand their market reach and attract foreign investment.

To achieve these goals, the report emphasizes the importance of building capable, inclusive, and accountable institutions at the national, regional, and global levels. It calls for strengthened governance structures, improved regulatory frameworks, and enhanced cooperation among countries to facilitate trade and investment flows. Additionally, the report highlights the need for sustainable development practices, including environmental protection, social inclusion, and gender equality, to ensure that the benefits of economic growth are shared equitably across society.

In conclusion, the report provides a comprehensive roadmap for African countries to diversify their exports and promote structural transformation through the services sector, financial services, and private businesses. By adopting innovative mechanisms, investing in infrastructure, skills development, and policy reforms, and fostering a supportive environment for entrepreneurship and private sector growth, African countries can unlock their full potential and contribute to the global economy.

Dimension: 210 (mm)
ISBN-13: 9789211130607