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Submitted by Daniel Chachu on
I share in many of the comments raised in the Mckinsey Global Institute report, especially those relating to the sectors that I believe would experience buoyant growth in the next five to ten years. Besides industry, agriculture, resources and infrastructure, I would like to include the service sector. As acknowledged in the summary above, the financial and tele-communication sectors would be key drivers of growth. A caution though... It is true that many of the good performing economies are characterized by liberalized sectors, falling general price levels, reduced budget deficits etc however the focus should not just be on these. I see most of these indicators as symptoms rather than the substantive steps that Africa needs to take to sustain growth. The five sectors mentioned above hold the key. This does not mean that ensuring a stable and low inflation rate is not necessary. It is necessary only up to the point of stifling growth. The fixation of some development partners on pushing African economies to target and achieve inflation rates of 5% (and less) at all cosst is troubling. This must stop! Macro-economic stability and not macro-economic austerity is what Africa needs.