Governing development in Africa: the role of the State in economic transformation

Abstract

This performance improvement, widely shared across countries, but raised hopes of a possible turnaround, compared to the stagnation of the previous two decades. Yet this growth did not result in significant creation of employment or wealth or improved welfare for ordinary Africans. One of the key explanations for this non-inclusive growth pattern is Africa’s heavy dependence on primary commodity production and exports and limited economic transformation.1 African economies are still dominated by agriculture and extractive sectors. Heavy dependence on primary commodity sectors increases exposure to economic volatility and enhances vulnerability to external shocks. It has also contributed to Africa’s sustained high unemployment and the prevalence of vulnerable, predominantly informal-sector employment.