By John Ikani
Africa’s largest economies, including South Africa, Egypt, Nigeria, and Algeria, are witnessing sluggish growth compared to other regions on the continent, according to a new report by the renowned economic consultancy, McKinsey.
McKinsey’s senior partner, Acha Leke, in the report emphasized the need for a shift in focus, stating, “The growth in the past was driven by resources. We need to pivot now to productivity growth.”
The report highlighted how the performance of these key economies has contributed to a deceleration in overall growth across Africa. Although the continent’s growth averaged at 3.3% over the past decade, this figure is overshadowed by rapid population growth, raising concerns.
The report also indicated significant variation within Africa’s growth trajectory, shedding light on some remarkable success stories.
East Africa, particularly Rwanda, has emerged as a hub of consistent economic growth.
Furthermore, certain West African nations, including Ivory Coast, have recently experienced a notable surge in their economic expansion.
Consequently, Acha Leke revealed that approximately 50% of Africans now reside in countries that have surpassed the average growth rate.
Looking ahead, the report emphasized the importance of strengthening intra-regional trade, facilitating the growth of African businesses at scale, and prioritizing skill development among the future workforce as critical factors for driving future economic growth in Africa.
