Finance and African development—pursuit for inclusivity

This policy brief looks at the Least Developed Countries—32 African countries classified by the UN as LDCs, whereas the rest are classified as either Lower Middle-Income Countries or Middle-Income Countries. It looks at the policy thrust of ensuring that no one is left behind nor by the wayside—amounting to simultaneous reduction of poverty and inequality. Inclusivity gained traction overtime—into the UN’s 2030 inclusive agenda of SDGs, and the 2063 Africa Union’s inclusive agenda. Indicators of Africa’s commitment to reduce inequality (CRI) show only North Africa with 0.53 and the rest of the four Africa’s regions ranging between 0.30 to 0.36. The demographic dividend played a role in the “economic miracles” of the East Asian Tigers, accounts for between one fourth and two fifths of the “miracle”. Africa has been unique demographically because fertility rates have remained relatively high, even as significant progress has been made in decreasing the mortality rates. Realizing demographic dividends requires multiple investments—building the capabilities of people and ensuring their rights and freedoms to achieve their potential. In pursuit for transparent inclusivity and graduation from the LDC status, many African countries need significant financing to close the development gaps, meet the SDGs, enhance inclusivity, and sustain the demographic dividends. Demographic dividends will be constrained without simultaneous investments in decent job creation, good governance, infrastructure and a functioning business climate, and other key elements of inclusivity and better human development outcomes. READ MORE…