Only 4 countries in Africa have moved up from LDC bracket

Since the introduction of the "Least Developed Countries" classification in 1971, only four countries have managed to graduate from least developed to middle-income countries. Botswana achieved this feat in 1994, followed by Samoa in 2014. While their collective economic growth took a hit after 2012, dropping to a low of 3.6 per cent in 2015, some other LDCs in Africa such as Ethiopia, Tanzania, Uganda, and Rwanda are making relative progress in terms of structural transformation and productivity. During a recent interview on CNBC Africa, Andrew Mold, Senior Economic Affairs Officer at the United Nations Economic Commission for Africa (UNECA), shed light on the economic journey of these countries. Mold highlighted some key lessons from successful cases such as Botswana's graduation, attributing it to good governance and strategic use of resources. Botswana's investment in human capital and infrastructure, fueled by diamond exports, served as a model for other nations aspiring to transition from LDC status. The report emphasized the importance of both national policy measures and international support in facilitating this transition, urging for sustained momentum for economic growth and structural transformation. While the road to graduation poses challenges, including the loss of preferential market access, achieving middle-income status remains a common goal for many LDCs in the region. Mold emphasized the need for enhanced international support measures and greater utilization of available provisions, such as special and differential treatment within organizations like the WTO, to aid LDCs in their development efforts.