WEF urges African states to boost long-term competitiveness

Thursday, May 09, 2013 — updated on December 25, 2020 - 2 min read

From left: WEF chair Klaus Schwab, South Africa's President Jacob Zuma, IMF first deputy managing director David Lipton, African Union chair Nkosazana Dlamini-Zuma, Jindal Steel and Power chair Naveen Jindal, and AfDB president Donald Kaberuka attend the second day of the World Economic Forum on Africa on May 9, 2013, in Cape Town South Africa. Photo/AFP

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The report stressed the importance of achieving regional integration which it said is a key vehicle for helping Africa to raise competitiveness, diversify its economic base and create enough jobs for its young, fast-urbanising population.

The World Economic Forum (WEF) on Thursday urged African countries to boost long-term competitiveness so as to ensure sustainable improvement in living standards.

African economies have made strides in achieving economic growth in recent years but these must be accompanied by efforts to boost long-term competitiveness, the WEF said in its Africa Competitiveness Report 2013 jointly published with the African Development Bank and the World Bank.

The report stressed the importance of achieving regional integration which it said is a key vehicle for helping Africa to raise competitiveness, diversify its economic base and create enough jobs for its young, fast-urbanising population.

It said Africa's exports remain too heavily focused on commodities and that its share of world trade remains low, despite numerous regional economic communities and domestic market liberalisation.

"Africa's growth needs to be seen in the wider international context, where encouraging gains in economic growth belie an underlying weakness in its long-term competitiveness," said Jennifer Blanke, Chief Economist of WEF.

"Regional integration is key to addressing this weakness through the delivery of wider social and economic benefits and should be prioritised by Africa's leaders as they look to ensure that Africa delivers on its promise," she said.

Gaiv Tata, Director, Africa Region, World Bank Group, echoed this view, saying "to turn its economic gains into sustainable growth and shared prosperity, Africa's public and private sectors must work together to connect the continent's markets, deepen regional integration, and adopt reforms that enhance national competitiveness."

The report was released during the WEF meeting which began on Wednesday and will end Friday with more than 865 participants from more than 70 countries.

Under the theme "Delivering on Africa's Promise", the meeting's agenda will integrate three pillars: Accelerating Economic Diversification; Boosting Strategic Infrastructure; and Unlocking Africa's Talent.