The Young Professional Economists Network report titled: New economic thinking for bridging rising income inequality in Africa, said the impressive economic growth recorded over the past decade in Africa had replaced previous headlines of a ‘hopeless’ continent to ones of a ‘rising’ Africa.
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“The continent has been home to some of the fastest growing economies in the world. Six out of the top ten fastest growing economies of the world are found in sub-Saharan economies,” read the report.
“The quality of growth has also improved with more diversification from commodities to services and technology led-growth.”
The report also added that, there has been a broad improvement in macroeconomic management and Africa’s regional integration projects.
“There is also a considerable improvement in good governance and environment for business and trade.”
The report also noted that there was still more to be done to be able to attain the levels of economic impact from these impressive growth stories.
“Although there has been a positive economic outcome for the last decade, there is still high level of poverty on the continent,” said the report.
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“Africa is still a poor continent and this economic growth has not reduced inequality. Poverty remains stubbornly high and widespread across the continent, with particular reference to sub-Saharan Africa.”
According to the report, the growth has not been inclusive enough to lower income and its related inequality which is therefore rising to be a major challenge to Africa.