African economies need to fight corruption and put in place strong institutions if they are to be competitive and achieve inclusive growth.
At a conference on regional economic growth, African leaders were challenged to foster competitiveness across all sectors to reduce disparities in economic performance.
African Economic Research Consortium (AERC) Executive Director Prof Njuguna Ndung’u urged Africa to first solve the constraints imposed by weak institutions that drive market developments and distort incentives.
This includes high transactions costs, the macroeconomic environment that imposes uncertainty and socio-political cycles that undermine long-run strategic directions.
“Competitive economies are most likely able to provide an environment conducive to business, market development, policy clarity and effective coordination, and hence will grow more sustainably and inclusively,” said Prof Ndung’u.
He spoke at the AERC 51st Plenary Session in Nairobi on Monday.
East Africa Community Cabinet Secretary Adan Mohammed said African countries face the hurdle of reverse globalisation as big economies start refocusing on their domestic markets through various policies.