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
-
Damang takeover: There is not going to be any job loss; it is a lease change – Bobby Banson
3 minutes -
Gold Fields didn’t stop mining at Damang mines; such claims are untrue – Bobby Banson
6 minutes -
Engineers and Planners currently operate only in Ghana – Bright Simons
24 minutes -
Lands Minister has no legal basis to restrict lease to Ghanaian firms – Bright Simons
29 minutes -
Gov’t’s refusal to renew Gold Fields’ lease was simply untenable – Bright Simons
31 minutes -
SOS Children’s Villages Ghana deepens partnership with Gender Ministry
49 minutes -
Gender Ministry celebrates Christina Koch, reaffirms commitment to empowering girls
1 hour -
Live stream: Newsfile digs into E&P’s takeover of Damang Mines, OSP powers and Anti-LGBTQ Bill
1 hour -
Moody’s maintains Ghana’s rating at Caa1, revises outlook to positive
2 hours -
Zambia elevates tourism education to national priority as President Hichilema backs continental summit
3 hours -
Activa promotes credit insurance to boost SME export growth
3 hours -
ILTM Africa 2026 opens doors to inbound and outbound luxury travel in Cape TownÂ
3 hours -
“BP Soul Travel and Tours scored the highest marks” – Sports Minister Kofi Adams endorses agency for World Cup travel
3 hours -
‘At the age of 12, I was teaching people and collecting money from them’ – Forty Under 40 Awards
4 hours -
I broke my virginity at the age of 26 after university – Richard Abbey Jnr.
5 hours