[PanAfrica] ADB Chief Tips On Economic Growth, Poverty

from All Africa

Martin Luther Oketch
Kampala

AFRICAN leaders have been urged to ensure sustained economic growth in their countries to reduce the poverty level on the continent.

Africa has done well in the past ten years in economic reforms but it has achieved very little in the sphere of economic transformation due to lack of shared economic growth, which policy analysts have blamed on the leaders and inappropriate economic polices that do not have holistic approach to development.

Mr Donald Kaberuka, the President of the African Development Bank (ADB) made the call while addressing an Africa-wide press video-conference on May 8, from ADB head offices in Tunis, Tunisia.

He urged African leaders to ensure that the continent realises sustainable economic growth that benefits the entire continent.

"Increase in economic growth does not necessarily mean a reduction in poverty; countries need to attain real Gross Domestic Product growth rate of 8 percent for the oil exporting countries and 7 percent for the non-exporting countries per annum. Sustain the rate of economic growth, which is shared by all sectors of the economy and the entire citizens of the state," he said.

Uganda's state of poverty has in recent times deteriorated. More than 38 percent of Ugandans live under the poverty line and about 20 million Ugandans in about 4 million households live in rural areas where the bite of poverty is hardest.

African ministers of Finance, Planning and Economic Development are due to meet in Ouagadougou, Burkina Faso from May 14 -15, to discuss how to enhance the implementation of employment generating strategies in Africa.

More than 300 participants including central bank governors, representatives from the African Union Commission, the African Development Bank (ADB), and the Regional Economic Communities are expected to attend.

Kaberuka said that the conference would focus on infrastructure development on the continent, Regional Integration, increasing Africa's trade share and investment in the world trade, by use of regional groupings, increasing investment in energy sector and scaling up funding to the private sector.

"Removing the fiscal barriers to trade within the region and building a platform, which is competitive should be given a high priority," he said.

Kaberuka observed that East African countries are faced with the problem of labour immigration and high cost of doing business among other issues, which he asaid should be addressed.

On corruption, Kaberuka said that there would be zero tolerance on corruption, warning that ADB would stop the projects in Uganda if cases of corruption are found.

Currently ADB is running 15 projects in Uganda with a portfolio of $400 million (Shs732.202.0 billion).

He said the recent appointment of Dr. Louis Kasekende, as the Chief Economist of ADB is a reform measure aimed at strengthening the managerial capacity of the bank and as an effective use of continental resources.