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2.5 Conclusion: Economic Report on Africa 2007

2.5 Conclusion: Economic Report on Africa 2007

Despite notable economic recovery in Africa since the turn of the 21st century, the
continent still faces important challenges in attaining its development goals. Being
highly commodity dependent, growth remains volatile and too low for achieving
the MDGs, while pressure from oil prices threatens price stability in oil-importing
countries. Macroeconomic balances are driven by developments in the resource
sector and continue to worsen for oil-importing African countries. Moreover, external
debt remains high and private capital flows insufficient to bridge the gap between
domestic savings and necessary investment for Africa to meet the MDGs.

In order to accelerate and sustain growth over a long period of time, Africa needs to
create a policy space and embark on innovative growth strategies. In particular, it
should address the factors contributing to low and volatile growth through: improved
macroeconomic management; increased domestic investment, which requires mobilization
of internal and external resources; improved infrastructure (especially transport
and energy supply), and diversification away from resource sectors.





25 Conclusion Economic Report on Africa 2007 - To learn more about this author, visit United Nations Economic Commission for Africa's Website.

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United Nations Economic Commission for Africa
(Visit United Nations's Website) The United Nations Economic Commission for Africa (ECA) is the regional arm of the United Nations, mandated to support the economic and social development of its member States, foster intra-regional integration, and promote international cooperation for Africa's development.

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