1887

Africa’s Development Dynamics 2021

Digital Transformation for Quality Jobs

image of Africa’s Development Dynamics 2021

Africa’s Development Dynamics uses lessons learned in the continent’s five regions – Central, East, North, Southern and West Africa – to develop policy recommendations and share good practices. Drawing on the most recent statistics, this analysis of development dynamics attempts to help African leaders reach the targets of the African Union’s Agenda 2063 at all levels: continental, regional, national and local.

The 2021 edition, now published at the beginning of the year, explores how digitalisation can create quality jobs and contribute to achieving Agenda 2063, thereby making African economies more resilient to the global recession triggered by the COVID-19 pandemic. The report targets four main policy areas for Africa’s digital transformation: bridging the digital divide; supporting local innovation; empowering own-account workers; and harmonising, implementing and monitoring digital strategies. This edition includes a new chapter examining how to finance Africa’s development despite the 2020 global economic crisis.

Africa’s Development Dynamics feeds into a policy debate between the African Union’s governments, citizens, entrepreneurs and researchers. It aims to be part of a new collaboration between countries and regions, which focuses on mutual learning and the preservation of common goods. This report results from a partnership between the African Union Commission and the OECD Development Centre.

English Also available in: French, Portuguese

Executive summary

COVID-19 poses an unprecedented threat to financing Africa’s development by creating new risks and exacerbating pre-existing vulnerabilities. The amount of financing per capita decreased over 2010-18 for both domestic revenues and external financial flows, by 18% and 5%, respectively. Between 2019 and 2020, the ratio of tax to gross domestic product (GDP) is expected to decrease by about 10% in at least 22 African countries; total national savings could drop by 18%, remittances by a fourth and foreign direct investment by 40%. Donors have pledged to maintain official development assistance at their pre-crisis levels, although their capacity may depend on economic trends. This negative shock is increasing fiscal expenditure to support health and economic activities, which will probably double fiscal deficits. As a result, Africa’s debt will soar to about 70% of GDP in current US dollars, with debt exceeding 100% of GDP in at least seven countries. The G20 debt moratorium that began in April 2020 provides a necessary respite for African countries, but it remains insufficient. Suspending and, in some cases, restructuring the debt may prove necessary to free up resources that are critical to achieving the African Union’s Agenda 2063: The Africa We Want. Where possible, debt negotiations should include the growing group of private sector lenders.

English Also available in: Italian, Portuguese, French

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error