An article in the Economist has highlighted that the middle-class of Africa is growing too slowly. Although the continent has been experiencing continuous GDP growth, the growth has not been inclusive, leading to an increase in inequality. The continent is too reliant on natural resources, so any changes in the global price of resources can be a boon or bane for the continent.
African countries can pool their resources together to achieve shared prosperity. Some of the things they could do are:
1. open an interdisciplinary research university with branches across the continent where students and researchers can work to solve Africa's problems. The universities can be modeled after the Indian Institute of Technology of India. These universities can help to generate technology solving Africa's problems, in addition to creating a pool of labor with adequate human capital
2. take steps to increase trade between countries, and make it easier for firms and people to open businesses across Africa. This will cushion African countries from negative external economic shocks.
3. encourage FDI in manufacturing sectors like footwear and garments, and link cotton producers to those manufacturing sectors.
4. improve the transnational infrastructure and ports.
These would help to increase manufacturing activities, and create a pool of people who can move to the middle-class category. Once the trajectory is set, the size of the middle class will increase substantially. This can help the continent as a whole to prosper.
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