Policy Brief
Africa's Lions

Three challenges limiting the potential for inclusive growth

Historically, the African continent has been largely dismissed as a case of regional economic delinquency, with the levels of growth necessary to reduce poverty and inequality deemed to be consistently unattainable. In the last decade, however, significantly higher levels of economic growth have ushered in a new era to the region, suggesting it may be ripe for a period of rapid development.

However, a survey of six major African economies — Ethiopia, Ghana, Kenya, Mozambique, Nigeria, and South Africa — shows that there are three major constraints which could, when unchecked, reinforce a pattern of low growth accompanied with limited poverty-reducing impact. These themes are a resource-led growth path, an absent manufacturing sector, and the increasing informalization of the work force.