Africa remained the second fastest growing economy in the world, after emerging Asia, and several countries in the continent were among the world’s fastest growing countries in 2015, according to African Economic Outlook 2016 Report issued today.
The report shows that real GDP of Africa grew by an average of 3.6 percent in 2015, higher than the global average growth 3.1 percent and more than double of that of the Euro area.
Africa’s economic growth remained resilient in 2015 amid a weak global economy, lower commodity prices and adverse weather conditions in some parts of the continent, it noted.
Speaking at the launching ceremony of the report under the theme: “Sustainable Cities and Structural Transformation in Africa”, State Minister of Finance and Economic Cooperation Ahmed Shide said sustainable cities and structural transformation are crucial if Africa is to move to higher-level of development and ensure sustainability.
He said “as more and more people are moving to urban areas African countries are required to prepare the urban landscape to accommodate vibrant economic growth which will help to foster innovation and productivity.”
The urban population of Ethiopia is growing by 3.8 percent per annum, higher than the 2.5 percent population growth rate, and this will be tripled by 2037.
Investment in urban infrastructure and services, including modern transport infrastructure system, house development, and safety net among others are underdeveloped in urban areas, the state minister said.
The report indicated that Africa’s urbanization contributes to human development gains but not for everyone, adding that addressing the growing urban poverty should be an integral part of new urbanization strategies.
Josephine Ngure, Resident Representative of African Development Bank (AfDB) said on her part African countries did better on average in terms of economic growth.
Speaking about Ethiopia’s urban population, she said it has been increasing rapidly since 2005.
“The government of Ethiopia has recognized this high growth in its GTP II focusing on proper managing and administrating the ongoing rapid urbanization to allow its potential for sustainable growth and structural transformation,” Ngure added.
In 2016, the common African position on urban development and the emerging international new urban agenda offer opportunities to discuss options and start articulating those new urbanization policies around strategies for African’s structure transformation, according to the report.
[www.ena.gov.et/]