Over the last decade, African economies recorded impressive economic growth rates. Economic growth remains vigorous and growth is forecasted to be 5.5% in 2013-2014 in Sub-Saharan Africa. Today, almost a third of the countries in the region are growing at 6% or more. African countries are now routinely among the fastest growing countries in the world (World Bank, 2013). Despite the remarkable economic performance, Africa has the world’s highest proportion of poor people and is off track to meeting key MDGs (ECA, 2014). It is also projected that the continent’s population will increase by approximately 800 million people by 2040, putting even more pressure on natural resources. The challenge confronting the region therefore is not only to maintain, but to translate the rapid economic growth into sustained and inclusive development, based on economic diversification that creates jobs, contributes to reduced inequality and poverty, and enhances access to basic services. This underlies the renewed calls by countries for a structural transformation that fosters sustained and inclusive economic growth (Lin, 2012). Rodrik(2013) notes that while East Asian countries grew rapidly and turned their farmers into manufacturing workers, diversified their economies, and exported a range of increasingly sophisticated goods, little of that is taking place in Africa today.
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