Increasing inequality challenges growth in Africa: expert

By Addis Getachew

ADDIS ABABA, Ethiopia

Lack of inclusivity in Africa’s current economic growth and falling commodity exports featured prominently as the most overarching socio-economic dangers facing the continent at the opening of Africa Development Week in the Ethiopian capital Addis Ababa on Thursday.

The deputy executive secretary of the Economic Commission for Africa (ECA) Abdalla Hamdok said the current economic growth in Africa could not ensure that “benefits are widely shared”.

“Inequality remains a major concern as growth in many countries has not been inclusive,” he said. “Even though foreign investment is on the rise in the continent, “the number of Africans in absolute poverty is still high,” he said.

Hamdok went on to say that Africa’s economic growth fell slightly to 3.7 percent in 2015 from more than 4 percent the previous year.

The African Union commissioner for economic affairs, Anthony Mothae Maruping, for his part said: “It is well known that quite a number of African countries are facing falling demand in export commodities resulting in the fall in their prices.”

“The phenomenon,” he said, “sent devastating ripples down the economic and financial system, took a heavy toll on economies that are dependent on a narrow base of export.”

The Africa Development Week, which lasts until April 5, will see high level discussions on numerous issues including migration, industrialization, regional integration and recent global agreements.