World Bank Chief Economist, Albert Zeufack believes the embrace of digital transformation to modernise economies and reinforce economic growth can enhance the fortunes of Sub-Saharan Africa.
The Chief Economist for Africa held that digital transformation could increase Africa’s growth per capita by 1.5 percentage points per year and reduce the poverty headcount by 0.7 percentage points per year.
Should African countries enable the digital migration, it would unlock pathways for service delivery for inclusive growth, innovation while creating jobs, as well as reduce poverty in Africa among other gains. The World Bank report also looked at how fragility was hindering Sub-Saharan Africa’s growth.
Fragility is costing Africa over half a percentage point of growth per year, and adding up to 2.6 percentage points over five years it emerged with Mr. Zeufack cautioning that fragility in a handful of countries is costing the growth of the whole continent adding in fragile states, social cohesion and social infrastructural projects suffer as do the relationship between state and citizens.
According to Mr. Zeufack, Ethiopia and Uganda were fragile states a while back but with commitment and a plan have turned their fortunes around and are now developing rapidly.
The Bank expects Africa’s growth to recover this year to 2.8 per cent, with support of exports, private consumption and increased in agriculture and oil production, as well as mining and services sector in some countries.
Mr. Zeufack observed for African nations to experience economic dividends, it is critical to create much-needed digital infrastructure, put the right regulatory frameworks and invest in skills that would allow workers, entrepreneurs and government officials to explore opportunities in the digital world.
These emerged at a news conference organised by the World Bank in Washington, USA, through a video conference, which hooked up with some selected journalists assembled at the Bank’s offices in Ghana, Kenya, Liberia and Zambia.
By Michael Eli Dokosi/goldstreetbusiness.com
