Economic diversification is a requirement for Africa’s development, according to the 2012 Economic report on Africa launched on Tuesday in Addis Ababa, Ethiopia’s capital.
“In the long run, African governments must strenuously continue economic diversification and structural transformation in an effort to reduce vulnerability to external shocks such as the debt crisis in the euro zone or the volatility of the prices of commodities,” the report produced by the United Nations Economic Commission for Africa (ECA) and the African Union (AU) said.
According to the report, African countries must continue to diversify the destinations of their exports and broaden their economic partnerships, namely with new development partners and intensify Intra-African trade and investment.
The essential thing is that African countries can develop at a quicker pace by releasing their productive potential, by investing aggressively in infrastructure and human capital and promoting good governance.
To achieve this, the drafters of the report recommend strong political leadership and strong institutional framework to attain the long-term generalised transformation programme.
The theme of the 2012 economic report on Africa’s is “Releasing Africa’s Potential as a World Growth Point.”