The Challenges of Inclusive Growth in Sub-Saharan Africa: A Comparative Analysis of Angola and Nigeria

Abstract

Since the turn of the Century, African economies have undergone considerable transformation, with consistent and robust growth, in sharp contrast to decades of slow or even negative growth, which characterized the 1970s into the 1990s. While the region’s economies slowed down from an average of 5.6% during the period 2002-2008 to 2.2% in 2009, in the wake of the global financial crisis; Africa promptly recovered, with an average growth rate of 4.6% in 2010 and 6.2% in 2012, as well as 4.0 and 4.3% for 2013 and 2014, respectively. In Sub-Saharan Africa, economic growth is even more robust, averaging about 6% over the past decade. This development has made the region to be acknowledged with the second highest economic growth in the world in recent times. However, contemporary economic growth in Sub-Saharan Africa is largely unaccompanied by employment generation or increased livelihood opportunities. Consequently, poverty levels across the region remain relatively high, at 48% of the population. The challenges posed by lack of inclusive growth are particularly evident in Angola and Nigeria, countries that feature economies driven by the petroleum industry. Therefore, the major objective of this paper is to shed light on the challenges associated with lack of inclusive growth in Sub-Saharan Africa. The paper employs empirical data to analyze Angola and Nigeria case studies, which reveal both countries as resource-rich economies featuring relatively high economic profiles, devoid of widespread employment opportunities, with grave consequences for endemic poverty. Consequently, the paper presents a policy framework, grounded in poverty reduction strategies, enterprise development and capacity building aimed at promoting broad-based economic growth as the cornerstone of African economies. -------------------------------------------------------------------------------------------------------------------------------------Date of Submission: 14 -07-2017 Date of acceptance: 15-07-2017 --------------------------------------------------------------------------------------------------------------------------------------