Economic report on Africa 1984 : a report of the staff of the African Development Bank and Economic Commission for Africa

Abstract

Africa is not yet a capital exporter but in some cases debt servicing is choking off new investment as external capital inflows are not forthcoming in amounts, terms and conditions suitable to the needs of the continent. The outlook for agricultural and food production in most African countries is not bright for the immediate future even though some increase in output can be obtained by simply expanding the area under cultivation. However for the medium and long-term, the downward trend or stagnation can be mitigated by a careful design and implementation of appropriate policies to correct the past mistakes in accordance with measures spelled out in the Lagos Plan of Action. The ADB and the ECA make a joint effort to prepare a document analyzing the nature of the crisis and outlining the elements of possible policy choices. The main findings are not encouraging, output has been declining or stagnating since 1980, so that per capita income is now 10 per cent under its 1980 level. Trade has contracted; exports because of low external demand and imports because of both lower export receipts and shrinking external financial inflows.