Growing Africa 'must diversify'

Africa is feeling good about itself.

With the continent expected to grow by 5.5% in the next year - above the global average - there are plenty of wide smiles and crisp new suits at the World Economic Forum on Africa this year.

And as if the figures were not enough to make the leaders feel they are in the premier league - not least South Africa, which has just entered the inner sanctum of the Brics group of countries - there is the spectacular Cape Town stadium that hosted last year's football World Cup, glistening in the coastal sun.

But the continent's business leaders and politicians are being cautioned not to take their eye off the ball. 

                                                   African leaders realise economic diversification is essential to                                                   continue  the continent's long-lasting battle against poverty

"The primary responsibility for progress remains with ourselves - with African leaders and their population - who need to translate the continent's wealth into results and for the benefit of the people," says former United Nations Secretary General Kofi Annan.

"On one hand we've seen encouraging success stories, but there is no doubt that we have a lot to be done and there are many challenges ahead."

Changing focus 

The very factor that protected Africa from the global economic slow-down is the obstacle preventing it from diversifying. 

That is the stark message from the Africa Competetiveness Report. 

Kofi Annan wants Africa's people to benefit from economic growth

Its author, Dr Jennifer Blanke, from the Centre for Global Competitiveness and Performance, says: "African economies are not being integrated into the global economy and in the long run that will erode the continent's competitive edge."

In practice, that means relying less on raw materials, especially minerals, and investing more in human capital, especially women.

It also means growing the financial services sector and developing infrastructure so the continent's substantial agricultural potential can be realised and its produce distributed more effectively. Read more...