Enabling Sustainable and Inclusive Growth in Africa: African Economic Transformation Index

Abstract

Africa has experienced in recent years a high growth and relatively sustained of approximately 5 to 6% on average, reaching even 8 to 9% in some countries. However, despite this constant growth, growth in Africa has not been a poverty reduction factor as dominant as it could have been due to the high levels of poverty and inequality. Therefore, African countries need reliable and comprehensive indicators intending to evaluate the growth, which is more than a growth resulting in economic diversification, export competitiveness, an increase in productivity, technology upgrade, and finally, human well-being. African Transformation Index (ATI) has been recently created to measure African countries' progress in diversifying economic activities, making their exports competitive, increasing the productivity of farms, firms, and government offices, and upgrading the technology. The paper strives to elaborate on the African economic transformation in general and the African Transformation Index in particular to assess ATI's ability to address the issue of African economic transformation.

Africa has experienced in recent years a high growth and relatively sustained of approximately 5 to 6% on average, reaching even 8 to 9% in some countries. However, despite this constant growth, growth in Africa has not been a poverty reduction factor as dominant as it could have been due to the high levels of poverty and inequality. Therefore, African countries need reliable and comprehensive indicators intending to evaluate the growth, which is more than a growth resulting in economic diversification, export competitiveness, an increase in productivity, technology upgrade, and finally, human well-being. African Transformation Index (ATI) has been recently created to measure African countries' progress in diversifying economic activities, making their exports competitive, increasing the productivity of farms, firms, and government offices, and upgrading the technology. The paper strives to elaborate on the African economic transformation in general and the African Transformation Index in particular to assess ATI's ability to address the issue of African economic transformation.