According to the Economic Commission for Africa (ECA), the impact of severe and mutually reinforcing shocks is causing many African countries to struggle to achieve the continent’s development objectives.
In a statement, Mr Adam Elhiraika, ECA’s Director, Macroeconomic Policy Division, said the continent was facing severe developmental challenges due to increased poverty, high inequality rates, and a lack of good employment.
The COVID-19 pandemic, the Ukrainian war and its resulting food and energy crisis, rising inflation, debt tightening, and natural catastrophes, according to Elhiraika, are all critical factors in the challenge.
This was stated by the director while giving an overview of recent Economic and Social Conditions in Africa at the ongoing expert meeting.
The meeting was conducted to kick off the 2023 Conference of African Ministers of Finance, Planning, and Economic Development in Ethiopia.
According to the Report, Africa’s development rate will fall from 4.6 percent in 2021 to 3.6 percent in 2022.
“In 2022, an additional 18 million new poor emerged in Africa, with more than half the highest proportion of the world’s poor at 54.8 per cent.
“This is alarming because 546 million people were living in poverty in 2022, which is more than half of the continent’s population,” Elhiraika said.
According to the director, women and girls remain especially vulnerable, and the continent risks reversing hard-won gains in gender equity.
Another issue raised during the conference, he said, was inequality, which persisted across all African sub-regions and was particularly severe in Southern Africa.
The ongoing meeting in Addis Abeba is focused on promoting recovery and change in Africa in order to reduce inequalities and vulnerabilities. Countries were encouraged at the meeting to pursue pro-poor and inclusive macroeconomic policies, as well as to ensure access to affordable and innovative finance for an inclusive recovery.
