WALKING THROUGH A TIGHTROPE: THE CHALLENGE OF ECONOMIC GROWTH AND POVERTY IN AFRICA

Isaac Oluwatayo () and Ayodeji O. Ojo ()
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Ayodeji O. Ojo: University of Limpopo, South Africa

Journal of Developing Areas, 2018, vol. 52, issue 1, 59-69

Abstract: Economic growth and poverty reduction now take the centre stage in most global policy discourse. This is coming at a time that the Sustainable Development Goals (SDGs) are fast gaining global relevance. Africa has witnessed the highest but non-inclusive level of growth in the last decade because the continent still grapples with high unemployment rate especially among the youths. This paper therefore examines some drivers of and constraints to growth and poverty reduction in Africa. The paper focused on Africa by using secondary data sourced from different such as the United Nations Development Programme (UNDP), Transparency International (TI), Institute of Economics and Peace (IEP) and National Bureau of Statistics (NBS) reports and Annual Abstract of Statistics. Analytical methods employed were mainly descriptive statistics and comparative statistics. Findings showed that economic growth recorded in the continent is a ‘jobless’ one advancing inequality and poverty. More so, 75 percent of countries with low human development are in Africa with the continent’s consistent economic growth imparting insignificantly on the livelihoods of the people. In fact, 27 out of 54 African countries were reported to have GDP of less than $USD 2000 per capita. GDP growth in sub-Saharan Africa was estimated at 4.9 percent in 2013 and this increased to 5.3 percent in 2014 and further estimated to rise to 5.5 percent in 2015. The fight against inequality, poverty and unemployment is tantamount to aiming a moving target. Youth unemployment remains a component of Africa’s growth owing to persistent low productivity and underemployment in the informal sector. The resultant implication of this is manifested through persistent inequality, poverty, armed conflict and unchecked migration of young people to industrialised nations in search of the non-existing livelihood opportunities. This paper therefore recommends increased and monitored investments in critical infrastructural facilities. There is a need for multilevel and multinational partnership in the fight against corruption and social conflict to attract foreign direct investment. Investment in social security programmes will also assist the poor and vulnerable people in the continent.

Keywords: Africa; Change; Economic growth; Poverty; Youth unemployment (search for similar items in EconPapers)
JEL-codes: F63 I31 I38 J13 N37 O55 (search for similar items in EconPapers)
Date: 2018
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