The sources of growth for Africa’s structural transformation

Understanding the key sources of growth for Africa’s structural transformation is the focus of this chapter. Such transformation requires reallocating resources towards higher-productivity activities across and within sectors, especially manufacturing and modern services, and should therefore foster growth. However, the limited structural transformation of many African countries appears to have induced a shift towards low-productivity activities, particularly to the informal sector, and has not been conducive to broad-based sustainable growth, confirming the discussion in chapter 1, which flagged the role of primary commodity production and exports in Africa’s growth. Institutions and policies are the key instruments for increasing productivity, growth and structural transformation.

Related Subject(s): Economic and Social Development