The 2024 Economic Development Report in Africa: Challenges and Opportunities
The 2024 Economic Development Report in Africa, prepared by the United Nations Conference on Trade and Development (UNCTAD), sheds light on the economic challenges and opportunities facing the continent. According to the report, in 2023, approximately 50% of African countries relied on oil, gas, or minerals for more than 60% of their export revenues. This dependence on raw materials exposes African economies to external shocks, including disruptions to global trade routes, which have led to a 115% increase in transportation costs compared to pre-pandemic levels.
The report also highlights that regional integration remains weak, with only 16 out of 54 African countries sourcing more than 0.5% of intermediate inputs from other countries on the continent. This limited integration hinders the resilience of regional value chains. Furthermore, intra-African transportation costs are among the highest in the world, reaching up to 50% more for landlocked countries compared to coastal countries, which hinders the development of intra-African trade.
The report emphasizes the importance of renewable energy in reducing vulnerability to global energy shocks. Although investments in renewable energy in Africa reached $15 billion in 2023, this represents only 2.3% of global investments in this sector. The report calls for strategic investments in infrastructure and technologies to strengthen the economic and commercial resilience of the continent.
