AfDB recently launched the 2018 edition of its yearly flagship report, the African Economic Outlook (AEO). The report, highlighted that Kenya’s economy will continue to show resilience as the country remains a leading ICT hub.
The bank pointed out that half-year estimates show Kenya’s economy to have remained resilient. The economy grew 4.8 per cent, despite various deterrents in 2017.
AfDB said via a statement that:
“Kenya’s economy remains resilient due to its diversity; services contributed the highest proportion to GDP growth. This is expected to continue as the country remains the leading regional hub for ICT, financial, and transportation services.”
Thanks to its resillience, Kenya’s economy is projected to rebound to GDP growth of 5.6 per cent in 2018 and 6.2 per cent in 2019.
The Service industry, which includes the ICT industry, accounted for 82 per cent of Kenya’s GDP in 2017. This shows that the country truly is becoming an ICT hub.
AfDB makes a compelling case for Africa’s industrialisation
Industry accounted for 17 per cent of Kenya’s GDP, while agriculture continued to strugle.
AfDB president, Akinwumi Adesina, made a compelling case for accelerating Africa’s industrialisation through agriculture.
He said, “Agriculture must be at the forefront of Africa’s industrialization.”
Citing data from the Bank’s 2018 AEO, Adesina said infrastructure projects were among the most profitable investments any society can make.
Adesina noted that economic diversification is key to resolving many of the continent’s difficulties. He thus urged African governments to encourage a shift toward labour-intensive industries.
He reminded the audience that economic diversification via industrialization with tangible investment in human capital will enable the continent’s rapidly growing youth population to successfully transition to productive technology-based sectors.
Adesina announced that AfDB would organise the Africa Investment Forum on November 7-8, 2018 in Johannesburg, South Africa.
The forum will help mobilise funds for infrastructure development, to bridge an estimated funding gap of $130-$170 billion a year.
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