Economic Transformation for a Prosperous Africa

Abstract

Economic transformation is a change which is attracting considerable focus and attention from economists, policy makers and development practitioners. There is no doubt that since independence, African countries have struggled to free the continent from ignorance, poverty and diseases. Economic growth acceleration in Africa may herald a new development era of the future success of African transformation. In an effort to promote the future success of Africa, this paper provides an extensive review on developmental economics and empirical observation from successful transformed countries. In the course of this research, it was found out that as other regions of the world embarked on economic transformation, many African countries were addressing three policy syndromes; the economic incentive structures promoted in the 1960s which were counter productive emphasizing government ownership and control, little discipline in the public finances leading to boom and bust scenarios, and elite capture of state resources. This paper therefore recommends that government of African countries should encourage economic transformation through deregulation, discourage the neglect of agriculture in order to eradicate abject poverty and continually diversify their economies. They should also intervene in the economic activities where private individuals do not have sufficient knowledge and financial capability, and support will be required to create business-promoting environment to offer incentives for African entrepreneurs.