African countries have been urged to develop closer cross border ties in order to deal with traditional and emerging partners, according to the African Development Bank (ADB).
This was mentioned, yesterday, during the launch of African Economic Outlook and Africa Competitive Report in Kigali
The report emphasises that government efforts need to include measures to create jobs, invest in basic social services and promote gender equality.
According to AEO, the report, which was jointly compiled by ADB, UNDP and UNECA, Africa’s top emerging trade partners include China whose trade volume with the continent accounts for 38 per cent, India 14 per cent, Korea 7.2 and Brazil and Turkey at 7.1 and 6.5 percent, respectively.
Africa’s economies have weathered the global crisis but it is projected that the recent political crisis in North Africa and high food and fuel prices are likely to bring down the continent’s growth to about 3.7 per cent this year.
However, a rebound is predicted at 5.8 per cent next year.
The report indicates that Rwanda’s economy has demonstrated a strong recovery from global recession.
“The design and effective implementation of sound macroeconomic policies in the decade to 2010 have greatly contributed to the country’s resilience to the global recession,” it states.
Leonard Rugwabiza, Director General of Planning in the Ministry of Finance, said the report’s economic performance correspond to the country’s projections but there is room for improvement.
“As well as we can’t relax, we also have room to boost our economic performance especially in the tourism sector by building more hotels, Rugwabiza noted.
The ADB Country Representative, Negatu Makonnen, said both reports aim at enhancing the knowledge base among policy makers, the business community and the international donor community.
“The reports highlights challenges to further boost the growth as well as potentials to be developed,” Makonnen said.
The report also underlines challenges that hamper growth and the need to broaden resources to more sectors and regions.
Some of the Africa’s major challenges include infrastructural deficit, regional integration, private sector promotion and SME development and domestic resource mobilisation.
“Reducing the income inequality and further improving health and education are crucial to alleviate poverty and making economic growth more inclusive so that the whole population can reap the benefits,” a report states.
Working under the theme ‘Africa and its emerging partners’, the report indicates that emerging economies can provide additional know-how, technology and development experience required to raise the standard of living among millions of people in Africa.