This year’s theme “Growth, Jobs and Inequalities” is central to Agenda 2063: the goal of a prosperous African population requires strong, sustainable and inclusive growth that creates decent jobs and reinforces social cohesion by curbing inequality. Although Africa has the second highest rate of gross domestic product (GDP) growth in the world – it should reach 3.7% in 2018 – this remains below the goal fixed by African leaders of 7% annual growth over a long period. In addition, while extreme poverty has declined, it still affects 35% of Africans, or 395 million people. Lastly, the multiple inequalities of access to economic and social opportunities, particularly for women and the young, are such that they hinder the effectiveness of public policy and social cohesion.

In confronting these challenges, Africa possesses several assets including: a young and entrepreneurial population, territories that are transforming quickly with growing regions and rapid urbanisation, considerable natural resources, dynamic economies, rich ecosystems and a supportive diaspora. If, too often, policy has not managed to harness these resources effectively, then new strategic approaches are necessary. This report takes up the challenge by proposing ten key actions to guide development strategies and accompanies them with specific recommendations for the five regions.
These ten actions focus on: sustainable economic development by stimulating domestic investment, diversifying exports, deepening rural-urban linkages and promoting green growth; inclusive social development, through education provision aligned with labour market needs and effective and universal social protection; and lastly, stronger institutions via real regional integration, better mobilisation of domestic resources and ongoing improvement of political and economic governance.

• African countries contribute less than 4% to global gas emissions, but 27 of the 33 countries most at risk from climate change are in Africa (see Megatrend 5, Chapter 2).
• With current trends, urban waste in sub-Saharan Africa is estimated to rise by 161% between 2000 and 2025. Africa is not yet prepared for this. It currently has the lowest levels of waste collection services of any region (Brahmbhatt et al., 2017).
• Mortality from air pollution in African cities has increased in recent years, representing an equivalent cost of USD 447 billion in 2013, a third of the continent’s GDP (Roy, 2016).
• Population growth and inappropriate land use practices are increasing deforestation, land degradation, damage to ecosystems and water scarcity. The agricultural sector accounts for the livelihood of two-thirds of the population, and
most traditional livelihoods depend on environmental services (UNECA, 2016a; Brahmbhatt, Haddaoui and Page, 2017).

Promote environmentally-friendly and sustainable farming and tourism as value-added activities without sacrificing yields or productivity.
• In Mali and Senegal, farmers using sustainable fertilisers have raised their crops’ net worth by 61%, increasing income and savings. Uganda has decreased its use of artificial fertilisers from 9 kg/ha to 1 kg/ha, consequently increasing its export revenues of organic farm products by 600% (UNDP, 2014).
• Since its creation in 1989, Madagascar’s shrimp farming industry in the Western Indian Ocean has become one of the country’s leading export sectors by integrating environmentally-friendly methods and community development activities. Its methods are now expanding to Mozambique and Tanzania (UNECA, 2016b).
• Mauritius is making eco-tourism the main pillar of its tourism industry. The country expects to earn USD 5 million in revenue with an estimated 1.2 million tourists by 2020.

Africa’s business opportunities are now attracting international investors. The potential of domestic and regional markets attracted 53.4% of new foreign direct investment (FDI) projects to Africa in 2013-17. This share is similar to Asia’s level (55.7%) and ten percentage points higher than LAC’s (44.8%).

The report contains eight chapters. The first offers an overview of Africa’s development dynamics and its integration into the global economy. The second chapter introduces five key trends shaping the continent’s current and future development dynamics. Chapters 3 to 7 focus on Africa’s five regions as defined by the Abuja Treaty. They provide detailed analyses of growth, employment and inequalities and offer tailored policy recommendations for each region. The final chapter wraps up the analysis by recommending ten policy actions that can help Africa achieve its development targets.

The aim of this new report is to illuminate this path in the context of globalisation. By analysing the economic development of Africa using an African analytic grid, it will contribute to the definition and implementation of innovative policies that are adapted to the specific characteristics of each economy and that further the African Union’s priorities. Each year, the report will address a strategic theme for the realisation of Agenda 2063, specifying its vision at the national, regional and continental levels. The comparative analysis of Regional Economic Communities (RECs) in Southern, Central, East, North and West Africa also will be enhanced with local and national examples. In addition to encouraging open dialogue between African decision makers, the report will document best practices, identify grey areas and assess the need for comparable data and statistics to better evaluate policies.