Audio By Carbonatix
African governments need to stimulate growth in the agricultural sector in order to bring the current booming economic growth in the continent at par with poverty reduction, the World Bank has said.
The bank said Africa’s inability to do that over the years had led to a rising growth that failed to impact positively on the lives of the citizens.
Using 2012 as a case study, the bank said although African economies maintained their strong growth in 2012 compared to their peers in other regions, that robust growth was natural resources-led, leaving the agricultural sector an employer of a chunk of the citizens in the continent.
“To reduce poverty and make sure these growth numbers reflect in the livelihoods of the people, governments need to invest more growth in agriculture,” the bank’s Chief Economist for Africa, Mr Shanta Devarajan, said in a video conference.
He was speaking to journalists in some African countries, including Ghana, after the release of Africa’s Pulse, a World Bank publication that explores the issues that shape the development and socio-economic agenda of the continent.
It is a biennial publication from the office of World Bank’s Chief Economist for Africa.
The report said 25 per cent of the countries in Africa grew at seven per cent or higher, “putting them in league with the fastest growing countries in the world.”
It said growth in sub-Saharan African remained strong at an estimated 4.9 per cent.
“Excluding South Africa, the remaining economies grew at a powerful 5.8 per cent – higher than the developing country average of 4.9 per cent,” the report added.
While admitting that the impressive growth recorded in the continent had partly reduced poverty in most countries, the report said the reduction was slow compared to the economic growth and blamed it on the lagging growth in agriculture and other key sectors that directly affected the populace.
“Much of the region’s growth has been led by high commodity prices, resilient domestic demand and increase in foreign direct investments and not in agriculture and the informal sector.”
“But you can’t experience growth if what you are producing is not increasing,” Mr Deverajan said in an answer to a question.
He recommended that much attention should be paid to poverty mitigation measures such as irrigation and mechanised farming, subsidies on agricultural implements and cash transfers to rural farmers and residents in general.
The bank has, meanwhile, predicted that growth in sub-Saharan African would average 4.9, 5.1 and 5.2 per cent in 2013, 2014 and 2015 respectively.
“The same driving forces that have underpinned the region’s robust performance in recent years are expected to be sustained over the projected horizon,” the report said.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
Emissions Levy had no impact on air pollution, research reveals
28 minutes -
DSTV enhanced packages stay in force as subscriptions rise following price adjustments
32 minutes -
Financial Stability Advisory Council holds final meeting for 2025
51 minutes -
Education in Review: 2025 marks turning point as Mahama resets Ghana’s education sector
57 minutes -
Nigeria AG orders fresh probe into alleged intimidation and assault of Sam Jonah’s River Park estate staff
1 hour -
Concerned Small Scale Miners commend GoldBod’s efforts in addressing gold smuggling
1 hour -
Haruna Mohammed claims Ghana Audit Service undermined
1 hour -
5 members of notorious robbery syndicate in Tema, Accra arrested
1 hour -
BoG, SEC and FIC hold Joint sensitisation workshop for Virtual Asset Service Providers
1 hour -
How Nico Cantor became one of the top voices in American soccer
2 hours -
Ghana colorectal cancer patients face low survival rates, KNUST study finds
2 hours -
Police arrest suspect in GH₵ 7.5m daylight robbery at Adabraka
2 hours -
Armwrestling: The Golden Arms’ 2025 Triumph and an Era of Unprecedented Victories
2 hours -
Ghanaian researcher wins ASCE editors’ recognition for modular construction study
3 hours -
Corruption fight: I don’t think there’s political persecution or witch-hunting – Edem Senanu
3 hours
