El-Hadj M. Bah
Jennifer Mbabazi Moyo
Audrey Verdier-Chouchane
African Development Bank

Carlos Conde
Philipp Heinrigs
Anthony O’Sullivan
OECD

Barak Hoffman
John Speakman
World Bank

Attilio Di Battista
Margareta Drzeniek
Caroline Galvan
World Economic Forum

The 2015 Africa Competitiveness Report comes out as Africa is growing at a brisk pace, surpassed only by emerging and developing Asia. Indeed, compared with the economic turmoil that affected advanced economies in recent years, economic growth in the African region has provided something of a silver lining. Growth is now returning in some advanced economies—notably the United States—although it remains anemic in much of Europe, Japan, and other advanced economies. In contrast, many sub-Saharan economies continue to register growth rates of over 5 percent on average. Yet, despite maintaining such healthy growth rates for over a decade, Africa’s levels of productivity are low and overall competitiveness has remained stagnant—a concern voiced since the first Africa Competitiveness Report came out in 1998.

Low levels of competitiveness are concerning for two reasons. In the short run, they render the region’s economies vulnerable to important economic downside shocks; such shocks range from a slowdown in emerging markets to repercussions of the four-year low in oil prices and lower prices for other commodities for the region’s resource-rich economies. In the medium run, they call into question whether the continent will be able to leverage its demographic dividend: Africa’s population of over 1 billion people represents a large emerging consumer market and labor force that provides significant growth opportunities.¹ In this context, making Africa’s economies more competitive will be critical. This year’s Report therefore explores whether structural transformations critical for driving competitiveness are being implemented. It also asks the question: are policymakers putting the fundamentals into place to maintain the high growth trajectory needed to ensure increases in living standards?

Following a brief analysis of the current structure of the region’s economies, this chapter will assess in detail the competitiveness landscape on the continent and in the individual countries covered by our analysis. By highlighting the strengths and weaknesses of the region and comparing individual African economies in a regional and global context, policymakers, business leaders, and other stakeholders are offered an important tool for formulating competitiveness-enhancing policies. This approach lays the groundwork for a more in-depth analysis of structural transformation in the chapters to follow.