Growth. Innovation. Sustainability

Inclusive economic growth and sustainable development in Africa remain critical for poverty reduction and improvement of individual wellbeing. There are several ways for measuring key elements of these objects, paramount of which is the Gross Domestic Product (GDP). However, the use of GDP as a measure of economic growth has significant limitations. This metric does not accurately reflect the wealth and well being of nations, and this is particularly true of African economies and the entire developing world.

To build ‘the Africa we want’ as advocated in Agenda 2063 of the African Union, establishing an accurate measure of economic growth and developing appropriate diagnostic tools are the first steps in ensuring evidence-based public and industrial policies, with subsequent program implementation and evaluation. The aim of these policies is to encourage economic growth through strengthening national capabilities, horizontal and vertical product diversification as well as strengthening production efficiency, among other initiatives. The sharpening of national capabilities includes creating an effective innovation eco-system and greater entrepreneurship education. Accelerating adoption and diffusion of technology, together with innovation and entrepreneurship in existing companies through consultancy and training also play a critical role in enhancing growth. These initiatives form the raison d’etre for the establishment of the Growth Lab for Africa (the GLA) at the University of Eswatini.

Most existing growth labs offer partial solutions or services, whereas the GLA argues for a holistic and co-ordinated approach. For example, the provision of support through innovation and entrepreneurship eco-systems as well as diffusion of technology only succeed if relevant government policies are formulated, implemented and evaluated. Equally, a scalable and sustainable approach to innovation and entrepreneurship needs to exist in a viable innovation eco-system and to focus on benefiting communities through supporting relevant individuals and companies. Finally, commercial capacity building and effective consultancy is best delivered from an understanding of the socio-economic challenges faced by the private sector, communities, the socio-political context of policy development, and the commercial operating environment.