African governments must encourage entrepreneurship in their domestic policies to see stronger economic growth, this is according to the African Economic Outlook (AEO) 2017 which was released on Monday, May 22 2017. The report details Africa’s sluggish economic growth in 2015 which fell to 2.2 percent from 3.4 percent because of a decrease in commodity prices and negative weather conditions that had an adverse impact on agriculture productions.
The slow growth in the continent is, however, forecasted to rise to 3.4 percent in 2017 and peak to 4.3 percent in 2018 if commodity prices rebound and domestic macroeconomic reforms are established. African governments must encourage entrepreneurship in their domestic policies to see stronger economic growth, this is according to the African Economic Outlook (AEO) 2017 which was released on Monday, May 22 2017. “Although economic headwinds experienced in the last two years appear to have altered the ‘Africa rising’ narrative, we firmly believe the continent remains resilient, with non-resource dependent economies sustaining higher growth for a much longer spell.
“With dynamic private sectors, entrepreneurial spirit and vast resources, Africa has the potential to grow even faster and more inclusively,” said Abebe Shimeles, Acting Director, Macroeconomic Policy, Forecasting and Research Department, at the African Development Bank. The soil for entrepreneurship in Africa is quite fertile according to the report which shows that in 18 African countries, 11 percent of the population that is able to work has opted to start their own business. The percentage of Africans starting their own businesses is higher than Latin American and Asian entrepreneurs, which are at 8 percent and 5 percent respectively.
However, this enthusiasm in entrepreneurship in Africa hasn’t translated to investment in high-growth sectors such as agriculture or construction. Read more