Africa’s Economic Growth Too Little To Reduce Poverty

A report by the Africa Progress Panel (APP) says that poverty continue to plague the continent even after most countries registered strong economic growth over the past decade helping increase the number of Africans entering the middle class category.  On average African has grown by 5 percent annually for the last couple of years and is forecasted by the World Bank to reach 7 percent growth per annum by 2016.

Despite this growth and reports of more luxury brands such as Porsche and Hugo Boss targeting the region’s growing elite with an insatiable taste for imported goods, nearly half of the continent still remain below poverty.  It is estimated that over 48 percent of people living in sub-Sahara Africa live below the poverty line, that is about 413 million Africans surviving on $1.25 per day. Over half of these Africa’s poor live in just four countries: the Democratic Republic of Congo, Ethiopia, Nigeria and Tanzania. This figure however has reduced rather slowly over the decade from 55 percent in 2003.

The APP report that average daily consumption for poor Africans is just $0.70, which too low compared with other regions of the world.  The report was quoted as saying,  “At this level, daily life is a struggle for survival.”  The report also said that even those above the international poverty threshold, about 250 million live on $1.25-$2.50 per day and could easily slip back into poverty in case of a severe drought of sickness affected the region.

The APP report also said, “The combination of high initial inequality and the average distance of a poor person from the poverty line, explains why Africa’s growth has reduced poverty at relatively modest rates.”  The APP partly blames the neglect of agriculture for the current situation. The vast majority of Africa’s poor are dependent on small-scale farming.

The report also said, “If the central aim of growth is to improve lives and eradicate poverty, then agricultural growth is a highly efficient vehicle.”  Furthermore, report then concluded, “Unlocking the productive potential of agriculture would enable Africa’s farmers to strengthen their contribution to growth and to share more equitably in the benefits.”

Source: AFK Insider