The president of Kenya Uhuru Kenyatta has urged governments across Africa to look at diversifying their economies as one of the ways to trigger inclusive and sustainable growth needed to leapfrog the continent.
The diversification, the President says will also cater for investment in key sectors of the economy such as education, finance manufacturing and services sector which create a direct impact on the livelihoods of people.
“Africa really needs to move away from being commodity dependant to really tapping what real growth is all about,” he said on Wednesday during the World economic Forum on Africa-WEF africa2016 held in Kigali.
The three day forum that kicked off on Wednesday May 11 brought together experts, business people leaders, policy makers across the continent to as well as rest of the world to look at how to spur the Africa’s growth.
Although Africa had enjoyed sustainable growth for the past 15 years, the continent recorded a decline in its growth of 3.5 percent by end of last year compared to the projected growth of 6.1 percent.
This according to experts was on an account of declining commodity prices,falling oil prices as well as sluggish performance of the China’s economy which happens to be one of Africa’s trading partner.
“We need to focus more on intra Africa trade, improving and increasing our manaufaicritng capacity and more with one other across the African continent,” Kenyatta explained.
Experts are optimistic that the continents growth is likely to improve on account of increased foreign Direct Investments-FDI that contribute to employment,
“Despite dwindling commodity prices and the concern being raised by the world, investment in Africa has not yet gone down,” said Tony Elumelo, one of Nigeria’s billionaire and founder for Tony Elumeu Foundation that champion entrepreneurship on the continent.
To further consolidate growth, Sugan Palanee, Africa Markets Leader at EY says that organization and investors need to adopt a granular, fact-based approach to assessing investment and business opportunities for the long-term.
Moreover, experts say that governments need to shift from reliance on raw materials to spur growth and look at investing in its human resource also need to look at investing especially young people who are future drivers of the economy.