Understanding the challenges faced by Africa’s least developed countries

Africa's least developed countries (LDCs) face a multitude of challenges on their path to sustainable development and economic growth. With 33 out of the world's 47 LDCs located in Africa, these countries require special attention and assistance to address their unique needs. The Istanbul Program of Action for Least Developed Countries endorsed in 2011 laid out a roadmap for these nations to build capacity, fund investments, and promote economic and social development. However, progress has been slow and volatile, with LDCs struggling to achieve the sustainable development goals and the objectives of Agenda 2063 set by the African Union. During the recent Economic Commission for Africa's Conference of Ministers in Marrakech, Adam Elhiraika, the Director for Macroeconomic and Governance Division at UNECA, shed light on the key challenges faced by Africa's LDCs and the strategies needed to overcome them. One of the main obstacles hindering progress in these countries is security and governance. Without improvements in political, economic, and corporate governance, attracting investment, both domestic and foreign, will remain a challenge. Enhancing security and governance is vital to utilizing resources efficiently, mobilizing investments in infrastructure, and advancing human development. Elhiraika also highlighted the importance of intra-Africa trade in helping LDCs transition towards graduation. By facilitating the movement of goods and services, harmonizing policies, and opening up borders, the African Continental Free Trade Agreement presents a significant opportunity for all African countries, particularly LDCs and landlocked nations. This agreement has the potential to address issues related to landlockedness, stimulate investment, and foster economic growth. However, the success of the CFTA relies on good governance, security, and the ability to build productive capacity and mobilize resources effectively. Despite the challenges ahead, there have been success stories within the African LDCs. Countries like Zambia, Djibouti, Angola, and Sao Tome and Principe have made significant progress and are close to meeting the graduation criteria. These nations have shown improvements in gross national income per capita and are on track to fulfill the human assets index and economic vulnerability index requirements. As more African countries strive towards meeting these criteria, there is hope for a brighter future for Africa's least developed countries with a stronger focus on sustainable development, economic growth, and regional integration.