Economic Report on Africa 2005

Meeting the Challenges of Unemployment and Poverty in Africa

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With the highest incidence of poverty in the world, Africa urgently needs to create more employment and thus tackle the scourge of hunger, malnutrition and the overall low living standards the continent continues to witness. In addition to its traditional role of reviewing Africa’s economic performance over the preceding year, and projecting medium-term prospects for the continent, this year’s Economic Report on Africa, the sixth in an annual series, provides a detailed analysis of the challenges of unemployment and poverty reduction, key issues at the heart of the debate on Africa’s development.



Structural transformation to break away from rural poverty

With 70 per cent of poor Africans living in rural areas, poverty in Africa is largely a rural phenomenon. Increasing rural employment and income is therefore crucial to reducing poverty. An increase in rural incomes will likely improve the living standards of the rural poor, but it could also drive a structural transformation of the whole economy.


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