AfDB Identifies Gaps in Africa’s Economic Planning Capacity

The African Development Bank Group (AfDB) has unveiled a comprehensive report highlighting significant gaps in the economic planning capacity across African nations. The report, titled “Benchmark Macroeconomic Models for Effective Policy Management in Africa,” was officially presented during the African Economic Conference 2023 in Addis Ababa.

Conducted by the African Development Institute of the Bank Group, the study involved a survey of 31 out of the 54 African countries. Collaborating closely with central banks and ministries of finance and planning and with support from the African Economic Research Consortium, the study examined the status and effectiveness of existing macroeconomic models.

Kevin Chika Urama (Prof), Chief Economist and Vice President for Economic Governance and Knowledge Management at the African Development Bank, emphasized the crucial role of macroeconomic models in comprehending and predicting economic trends. He highlighted that while these models simplify complex realities, their effectiveness depends on their alignment with real-world scenarios to guide decision-making.

Shalom Gebredingel, Chief of Staff and Special Advisor to Ethiopia’s Minister for Planning and Development, emphasized the report’s significance as a catalyst for transformative change. She noted that amidst challenges such as the COVID-19 pandemic, geopolitical tensions, and the impacts of climate change, policymakers must understand global, regional, and local dynamics related to economic planning issues in Africa.

Eric Ogunleye, Division Manager for the Policy Management Division at the African Development Institute, presented the study’s findings, which aimed to assess the available models in African countries and their suitability for decision-making in the context of economic planning issues in Africa.

The African Development Bank Group is committed to tailoring capacity development initiatives to align with the realities of member countries, ensuring demand-driven strategies.

The African Economic Conference brought together experts, the private sector, researchers, and youth to discuss the challenges and potential of industrialization across the continent. Organized by the African Development Bank, the United Nations Economic Commission for Africa, and the United Nations Development Programme, the conference addressed pivotal issues crucial for Africa’s economic advancement, with a primary focus on economic planning issues in Africa.

In conclusion, the AfDB’s report sheds light on the pressing economic planning issues in Africa. It underscores the importance of aligning macroeconomic models with real-world scenarios for effective decision-making in the face of diverse challenges. The commitment to addressing these issues through tailored capacity development initiatives is a positive step towards advancing Africa’s economic landscape and addressing economic planning issues in Africa.