World Bank’s CPIA reports indicate stagnancy of development: How is it affecting Africa’s poorest countries?

The World Bank recently released its Country Policy and Institutional Assessment (CPIA) report for 2018, highlighting the challenges faced by Africa's poorest countries in improving the quality of their policy and institutional frameworks. The average CPIA score for Africa's 38 International Development Association (IDA) eligible countries remained unchanged at 3.1, signaling stagnancy in development efforts. Albert Zeufack, Chief Economist for Africa at the World Bank, discussed the findings in an interview with CNBC Africa, shedding light on three key messages from the report. Firstly, Zeufack emphasized that the quality of policies and institutions in the 38 poorest countries in Africa did not improve in 2018. Despite being eligible for IDA assistance, these countries struggled to enhance their policy frameworks, with the CPIA average score remaining at 3.1 on a scale of 1 to 6. This lack of progress underscores the importance of prioritizing institutional reforms to drive sustainable development in the region. Secondly, the report highlighted a concerning trend of deterioration in fiscal policy and debt management across Sub-Saharan Africa in 2018. Zeufack stressed the need for strengthening debt management capabilities to mitigate the evolving risks associated with debt structures. Effective debt management is crucial for navigating the changing landscape of debt dynamics and ensuring financial stability in African economies. Despite the overall stagnant performance, Zeufack pointed out that some African countries continued to excel in improving their policies and institutions. Countries like Rwanda stood out as a beacon of progress, achieving a CPIA score of 4 out of 6 and ranking as the best-performing IDA country globally. Additionally, eight countries in Africa showed improvement in their scores, highlighting pockets of success amidst broader challenges. When discussing regional trends in performance, Zeufack noted that the continent exhibited significant heterogeneity in policy outcomes. Resource-rich countries tended to underperform, with notable declines in CPI scores observed in economies like Nigeria. Conversely, fragile countries in Sub-Saharan Africa demonstrated resilience in improving their institutional assessments, with countries like Central African Republic and Democratic Republic of the Congo making progress. Diversified economies with sustained growth, including Ethiopia, Kenya, and Uganda, showcased positive policy trajectories. The World Bank's CPIA report serves as a critical tool for assessing the policy and institutional landscape in Africa's poorest countries. By highlighting areas of improvement and challenges, the report informs policymakers, stakeholders, and development partners on key areas of focus to drive sustainable development and economic growth in the region.