World Bank yesterday launched a new plan that is expected to help African economies transform and provides a framework in which to embed Africa country strategies. The plan titled “Africa’s future and the World Bank’s support to it”, shifts from a more general focus on seeking economic stability and sound fundamentals to emphasize the need for attention in three key areas: competitiveness and employment; vulnerability and resilience; governance and public sector capacity.

The new report, endorsed by the Bank’s Board of Executive Directors, marks a significant shift in the way the organisation views Africa and its own role as a supporter of the continent’s progress.

“We are excited about Africa’s future. Today’s Africa is exemplified by the many success stories and stronger economic growth being driven by the dynamism of its people and economies. We therefore used the opportunity of our new Africa Strategy to listen, learn and define how we could better support the continent’s aspiration as it maintains the momentum of economic reforms over the next decade,” said Obiageli Ezekwesili, the Vice President of the World Bank for Africa Region.
The Bank prioritizes reforms and public investments on areas of highest growth potential, ICT being one of them. ICT has been identified as a channel to strengthen governance and leadership – main challenges underlying Africa’s development. The Bank’s strategy aims to strengthen citizens’ voice using instruments of social accountability and develop the potential of ICT to provide innovative ways to enable citizen-centered governance.
Sub Saharan Africa has been recognized as a casing point of how success of ICT, especially mobile penetration, can rapidly grow a sector. The success of ICT, especially mobile telephone technology, could improve access to finance (through mobile banking), good governance, agricultural productivity and health care, innovations that can be replicated continent wide. The bank urges Africa’s young population to capitalize on the IT revolution and other employment options.
Acknowledging that microfinance has a huge growth in Africa - citing low-cost payment services like MPesa in Kenya and Mzansi in South Africa – the bank will work to improve the present situation by replicating successful models targeted to the poor as part of an overall financial inclusion and innovative financing agenda geared towards leveling the playing field between foreign and domestic investors.
To address the three main investment climate constraints (infrastructure, business environment and skills), the bank aims to first take policy measures to address numerous inefficiencies that hemorrhage some US$ 17 billion of infrastructure annually. Careful attention will be paid to policy and institutional reforms including improved utility management, better asset maintenance, greater cost recovery and enhanced investment selection, budget allocation and execution arrangements.
This new strategy opens up new partnerships avenues and deepens cooperation with a wider range of partners at national, regional and global levels. The goal is to make sure that the Bank’s interventions complement what others, including the African governments, the private sector and other agencies are doing.
“This strategy is as much a reflection of what we heard from Africa’s people and leaders as it is the thinking of the World Bank,” says Shantayanan Devarajan, the World Bank’s Chief Economist for Africa. “Though we are confident it is the right approach at this time, we also want to make sure that we are ready to adapt as Africa continues to change and progress. This is what makes this such an exciting time for Africa. The continent has surprised naysayers, with more than a decade of solid economic growth and sustained reduction of poverty. It can seize this historic opportunity. Other regions have done it. So can Africa.”