African Economic Outlook

The collaborative work of the African Development Band and the OECD Development Centre continued in 2002 resulting in the publication of this edition of the African Economic Outlook (AEO). The publication aims to provide policy makers, private sector operators, and researchers with an objective analysis of economic and social development on the African continent. Using, as in the last edition, a unified methodology applied to all the twenty-two countries covered in this year's volume, the Outlook further provides an indispensable guide to the economic prospects of the continent. In this manner, it seeks to promote a deeper understanding of the challenges and opportunities facing African economics. This year's edition of the Outlook takes the same dispassionate look at African economies, examines the progress that has been made and identifies the problems that continue to hinder rapid development. Among the major conclusion of the report that Africa's economic performance, while showing considerable variation among countries, continues on the trend path observed in the last five years. While the prospects for 2003 are better than that of 2002, they are, however unlikely to result in a sharp in the region's average growth rate. This outcome is explained by factors specific to African economies as well as by developments in the external environment. On the domestic front, civil wars and unrest in some key countries, slow progress in improving governance systems, and drought in Eastern and Southern Africa have effected the overall rate of growth African economy. Externally, the sluggish recovery in the global economy and its adverse impact on the prices of major commodities has weakened Africa's economic growth in 2002. In the area of particular concern for this year's Outlook - the progress and prospects privatization - it is quite evident that while significant progress has been made, more effort will need to be exerted to make a success of this endeavour. Overall, it is nonetheless, encouraging the note that the economies of countries that are at the forefront of governance and economic reforms continue to do remarkable well. In the future, African countries should continue with their reform efforts in order to lay the economic, institutional, and social groundwork necessary for rapid economic growth. Africa's development partners would also need to continue to support such efforts -through increased aid flows, debt reduction and improved market access - in the context of the pledges made at Monterey, Kananaskis, and Johannesburg, and within the new partnership framework proposed by NEPAD. We are optimistic that an enhanced partnership between African countries and donor countries will in time indeed lead to an acceleration of the growth of African economies, improving the prospects for making headway towards the Millennium Development Goals. It is our hope that the new edition of the African Economic: Outlook will provide useful inputs into the national, regional and international policy discussion and debates on Africa's economic, performance and prospects. The first edition has begun to play such a role in important forums in Africa and Europe. It was for example, an essential instruments in forging a public private partnership in Mozambique. We are convinced that the second edition will continue to reach important and influential audiences. We therefore warmly commend this volume to our readership across the world.