KEYNOTE ADDRESS AND LAUNCH OF AFRICAN ECONOMIC OUTLOOK (AEO) 2013 AND AFRICAN DEVELOPMENT REPORT (ADR) 2012

DISSEMINATION SEMINAR BY MS. ANNE WAIGURU, OGW, CABINET SECRETARY, MINISTRY OF DEVOLUTION AND PLANNING, HOTEL INTERCONTINENTAL, NAIROBI 30TH SEPTEMBER, 2013
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C*)+(!/ D$!%,(*!, E)!*0%"+ U+$*+, K%+/", D$-($+')$-1%2 G)%-(L"2$%- "+2 G%+(&%3%+ Let me from the onset say that it is a great honour to preside over this important forum on the launch of the twelfth edition of the African Economic Outlook report. As I launch this report let me recognize that this year marks a major milestone in the development of Pan Africanism. !" years #ack in $%&'( the Organization of African )nity *OA)+ was #orn. ,he launch of this report therefore should help us reflect on the journey thus far and cast forward into the future we aspire towards( as a continent. L"2$%- "+2 G%+(&%3%+, Over the past decade( -u# -aharan Africa has seen a remarka#le turnaround in economic performance. After years of stagnation( economic growth has spurted.from annual average /0P growth of less than 1 percent in $%23 $%%! to a#out ! percent in the past decade. Inflation is half the level of the mid $%%"s. Private capital
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flows have risen to over 4!" #illion( e5ceeding foreign aid. E5ports are growing( as is private sector activity( and thus emerging as a major investment frontier. ,his increased dynamism in -u# -aharan Africa is evident across a #road swath of countries. It has created optimism that Africa6s favora#le development performance will #e long lasting and that it could dramatically transform countries in the region. Along the way( the prevailing discourse on Africa6s economic development has shifted from whether the region will develop to how the region is developing as well as positioning Africa as the ne5t investment frontier. 0espite this progress( there are still causes for concern. 7or one thing( there are large differences in the performance of individual -u# -aharan African economies. Also worrying is that historically( Africa6s performance has #een volatile.with short periods of acceleration followed #y long periods of deceleration. ,he pattern of progress underscores serious shortfalls in some areas( nota#ly in the economic diversification of many countries and in the integration of African economies into the glo#al economy. African countries also need to correct large infrastructure deficits( dramatically e5pand the skills #ase of their la#or forces( and improve their a#ility to a#sor# technical knowledge in the private sector in order to improve their glo#al standing in the years ahead. ,he downward risks are further accentuated #y the lingering effects of the glo#al financial crisis of 1""3( that is indirectly impacting on Africa6s resilience through trade and decline in glo#al demand and the intermittent disruption of financial inflows. L"2$%- "+2 G%+(&%3%+,

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,urning to the 1"$' /lo#al Economic Outlook with the -pecial ,heme 8-tructural ,ransformation and 9atural :esources;< It is a recognized fact that Africa is a diverse continent with regard to the individual country natural resource endowments. =anagement of natural resources is therefore closely intertwined with economic development. ,his provides uni>ue opportunities for fostering cross sectoral linkages. ?e are today faced with a favora#le African Economic outlook supported #y a relatively #road #ased growth( with oil production( mining( agriculture( services and domestic demand as the main drivers( mitigating the adverse effects from glo#al tur#ulences. It is for this reason that performance and projections for the medium term point to the continent6s continued resilience amidst glo#al headwinds. @owever( growth in several countries remains su#dued #y poor e5port performances and political and social tensions. ?e are also faced with growth that is not #acked #y sufficient poverty reduction( with persisting unemployment( increased income ine>ualities and in some cases( deteriorating levels of health and education. ?e must therefore em#race economic transformation capa#le of creating competitiveness( yielding more gainful jo#s and empower more people in the society. Aoming home( Benya has also witnessed variations in economic outlook. Benya saw an e5pansion of the economy of !.CD in the period 1""' 1""2. ,he multiple shocks e5perienced in the period following( resulted in a slowdown in the economy to '.%D though still demonstrating resilience. ,here is a great deal of optimism in economic performance in the current period( with an economic e5pansion of C.&D in 1"$1( and projections of &.$D in 1"$'. ,o ensure that the economy continues to remain vi#rant( as a country( we are moving towards policies that will ensure less vulnera#ility to e5ogenous shocks #y addressing the structural challenges of our economy. /reen growth as a concept portends
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great potential in unlocking new opportunities and new market potential. ?e will look to avenues that will create sustaina#le development( that will create jo#s for young people( women and marginalized communities< ensure consistency and resilience and stem vulnera#ility. 7urther( as a country( we look to address the infrastructure shortfalls< we need to modernize agriculture to increase productivity. ?e have included in the second =edium ,erm Plan the plan to harness our rich natural resource #ase for longer and sustained inclusive growth. ,his means making #etter use of the capa#ilities that will #uild a sustaina#le economy. At the macroeconomic front Benya will seek to we need to maintain inflation #elow dou#le digits< maintaining de#t at managea#le levels and maintaining fiscal discipline. L"2$%- "+2 G%+(&%3%+, ,he e5ploitation of natural resources for economic and social growth must #e linked to other sectors which re>uire sound land management( #alanced and effective ta5 systems and the right mechanisms and incentives to cause an acceleration and diversification of the sources of growth. It is imperative that governments ensure that the #enefits of growth are shared e>uita#ly to ensure poverty reduction( reduce income ine>ualities and improve livelihoods. As a country( we will leverage on new technologies and #reed innovations. 7inally( L"2$%- "+2 G%+(&%3%+, I wish to thank( the Africa 0evelopment Eank for undertaking a rigorous analytical report( #ut wish to highlight that for future reports( you should check with our offices to ensure that the data is consistent with what is produced #y the 9ational -tatistical Office.

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D$-($+')$-1%2 G)%-(-, L"2$%- "+2 G%+(&%3%+, It is now my hum#le duty to officially launch the African Economic Outlook 1"$'. T1"+4 /*) .*! /*)! "((%+($*+.

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