6 The way Forward: Policies for Achieving Diversification

Two key reasons emerge from the evidence and discussions in the previous two chapters of this report, as to why diversification should become a central pillar in Africa’s development efforts. First, diversification is important to strengthen growth in Africa because from the second half of the 1980s, Africa’s growth has been mostly accounted for by factor accumulation. Beyond a certain point, factor accumulation becomes binding under certain demographic and physical conditions, making other sources of growth critical. Consequently, the positive contribution of diversification to TFP is central to any efforts to achieve higher and sustainable growth in Africa.

Sustainable Development Goals:

Decent Work and Economic Growth

Reduced Inequalities

Partnerships for the Goals