The World Banks top official for Africa said on Tuesday that African countries can accelerate their economic growth in the next decade if the continent focuses on developing the private sector, increasing farm exports and improving the management of its natural resources.
Gobind Nankani, the World Banks new vice president for Africa, said the continent must first tackle the problems of HIV/AIDS and violent conflicts to achieve its potential. – Without tackling the threats posed by the AIDS pandemic and by violent conflict, our efforts to create a new future for Africa will show few results, said he according to the World Bank press review Wednesday.
Nankani said some African economies were showing signs of improvement with 15 countries including Uganda, Ethiopia and Burkina Faso averaging growth rates of over five percent per year since mid 1990s.
Another positive sign is that foreign direct investment (FDI) into Africa rose to 8,5 billion US dollar last year from 7,8 billion dollar in 2002. But for growth to be sustainable and to reach 7 percent, which is necessary to halve extreme poverty by 2015, African countries must drastically reduce the cost of doing business.
He added that the developed countries could help Africa by opening up their markets for Africas farm products while African countries should promote sub-regional trading arrangements. Also important is the need for African countries to channel most of the revenues from natural resources to providing better healthcare, education, safe water and transport.
– There must be transparency to ensure that everyone knows what revenues are flowing in from natural resources sales, Nankani said.
Kilde: www.worldbank.org
