Africa Progress Panel (APP) and Africa 2.0 warn that growing inequality threatens Africa’s growth

Lagos, Nigeria – The 2012 Africa Progress Report, presented today during the 3rd Annual Africa 2.0 Symposium, warns that Africa’s strong economic growth trajectory – which will see the region increase the pace of growth well beyond 5 per cent over the next two years – is at risk because of rising inequality and the marginalisation of whole sections of society, including youth. The report was presented by President Obasanjo, member of the Africa Progress Panel and Chair of the Advisory Board, Africa 2.0; Bineta Diop, Founder and Chair of the Board, Femmes Africa Solidarité; Hadeel Ibrahim, Executive Director of the Mo Ibrahim Foundation; Frannie Léautier, Executive Secretary, the African Capacity Building Foundation; and Mamadou Kwidjim Toure, Founder of Africa 2.0.

Kofi Annan, Chair of the Africa Progress Panel, states in the report that, “Disparities in basic life-chances – for health, education and participation in society – are preventing millions of young Africans from realizing their potential, holding back social and economic progress in the process.”

The report notes that Africa has seven of the world’s fastest-growing economies, with 70% of Africa’s population living in countries that have averaged economic growth rates in excess of 4 per cent over the past decade. However, the report also records that most countries are not on track to achieve the Millennium Development Goals by 2015, flagging slow progress in areas such as child nutrition, child survival, maternal health, and education.

The need for equitable growth is all the more critical, the report states, because of Africa’s “profound demographic shift”, which will see the continent’s population double in three decades, and continue to rise into the second half of the twenty first century. The report highlights that today there are 70 million more Africans aged under 14 than there were a decade ago. Over the next decade that number will rise by another 76 million.  

Panelists in Lagos call for a “relentless focus” by policymakers on jobs, justice and equity to ensure sustainable, shared growth that benefits all Africans. Failure to generate equitable growth could result in “a demographic disaster marked by rising levels of youth unemployment, social dislocation and hunger.”

Panelists identify a range of challenges demanding urgent action on the part of governments, including:

Youth employment: Africa’s youth population (15-24 year olds) will rise from 133 million at the start of the century to 246 million by 2020 – requiring another 74 million jobs over the next decade simply to prevent youth unemployment from rising. The report sets out an agenda for raising skills and generating rural jobs through off-farm employment.

Smallholder agriculture: In the absence of a concerted effort to raise the productivity of smallholder agriculture, and revamp the sector to make it more attractive to the youth, the report cautions that Africa will remain vulnerable to food security crises. It identifies ‘land grabs’ by foreign investors and speculators as a major threat and urges African government to consider stronger regulation.

Education: The report calls for urgent action to tackle what it describes as a ‘twin crisis’ in access and learning. With 30 million children out of school and many of those in school failing to master basic literacy, Africa is ill-equipped to generate jobs and take its place in a knowledge-based global economy. The report calls for a strengthened focus on education and the creation of appropriate funding mechanisms.

Governance: The report recognizes that democracy is taking roots, that multiparty elections are now firmly established and that more countries are peaceful than in the past. However, corruption, respect for the rule of law, accountability and transparency are still challenges that need to be addressed including through citizens’ empowerment and the strengthening of the national and regional institutions.

Global economic governance and aid: The report notes that Africa still has a weak voice in areas - such as trade, finance and development assistance – that have a critical bearing on its citizens. The report adds that aid remains vitally important and that African governments and development partners must deliver on their commitments in a transparent and accountable way.

President Obasanjo says: “The responsibility for progress rests with African governments. The mix of growth, human development and accountable governance holds immense potential but recent events have shown the frustration globally over persistent inequalities and the lack of jobs and justice. Now is the time to improve Africa’s political leadership quality to strengthen the rule of law and the political and economic empowerment of citizens.”

To follow the event on Twitter: @africaprogress #APR2012 @africa2point0 #2point0lagos.

For more information on the Africa Progress Report 2012: Jobs, Justice and Equity, and to download the report, please visit: www.africaprogresspanel.org/apr2012.

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Media information

The APP is on Facebook: Africa Progress Panel; Twitter: @africaprogress and #APR2012; and YouTube: Africaprogresspanel1.

Please visit www.africaprogresspanel.org/apr2012 for more information on the report and the press conference.

Download the PDF of the press release here