AFRICA’S REFORM CHALLENGE: KEY TAKEAWAYS FROM THE WORLD BANK’S 2024 CPIA REPORT

Editorial : Mamoudou Samoura

African policies and institutions are evolving, but at what pace? This is the central question posed by the latest Country Policy and Institutional Assessment (CPIA) 2024 report, published in July 2024 by the World Bank. The annual document evaluates the quality of governance and policy frameworks in 39 Sub-Saharan African countries, highlighting both progress and persistent challenges.

1. Reforms that are bearing fruit

Despite a turbulent global economic environment, some African nations have taken significant steps to strengthen their institutions. One of the most notable reforms has been enhancing the independence of central banks, a crucial move aimed at improving macroeconomic stability and attracting private investment. Furthermore, governments have tightened fiscal policies and increased transparency in public financial management, signaling a commitment to economic credibility.

2. A Concerning stagnation

However, these efforts have not yet translated into widespread improvements. The CPIA average score for Sub-Saharan Africa remains stuck at 3.1 out of 6, a rating that has barely shifted in recent years. Why this lack of progress? The report identifies several roadblocks:

• Limited transparency in governance, hindering effective reforms.
• Weak judicial systems, making it difficult to enforce laws and implement economic policies.
• Mounting debt burdens, restricting government capacity to invest in critical sectors like education, healthcare, and infrastructure.

3. An uncertain future, but hope remains

Despite these challenges, Andrew Dabalen, the World Bank’s Chief Economist for Africa, emphasizes the need for sustained reforms. He argues that the CPIA report should serve as a tool for guiding policy decisions and fostering constructive dialogue on governance and economic stability. He states: “The CPIA review offers a chance to identify areas of relative weakness and engage in a dialogue around policy reforms that can produce better development outcomes.”

The road ahead is tough, but the potential is real. By implementing inclusive policies and ambitious reforms, Africa can bolster its economic resilience and accelerate its journey toward a more stable and prosperous future.