Written by Dr Ibrahima Aidara

As a passionate advocate for economic governance, inclusive growth, and capacity development in Africa, I focus on the structural challenges hindering equitable development in West Africa. This article highlights the urgent need for a paradigm shift toward inclusive and sustainable growth. In fact, West Africa stands at a pivotal juncture, characterized by paradoxical dynamics: robust economic growth juxtaposed with entrenched poverty and inequality. While the region’s economic expansion is noteworthy, it has yet to translate into widespread improvements in living standards.

Economic Growth Amidst Persistent Inequality

West Africa’s economy has shown notable growth despite global uncertainties. In 2023, the region’s GDP grew by 3.6%, with projections expecting an increase to 4.4% by 20251. This growth is mainly driven by agriculture, industry, and services, led by countries such as Côte d’Ivoire, Ghana, Nigeria, and Senegal leading the charge.

However, the benefits of this growth are unevenly distributed. In 2023, around 32.5% of West Africa’s population, over 140 million people, lived on less than $2.15 per day, reflecting persistent extreme poverty2. This disparity highlights the ongoing challenge of translating economic progress into tangible improvements in citizens’ lives.

Socio-economic inequalities remain pronounced across the region, evident in both wealth distribution and access to basic social services. The Gini index, which measures income inequality, ranges from 29 to 44 in many West African countries. This indicates a significant concentration of wealth among a small elite, especially in urban centers where economic activity is concentrated, while most of the population lives in precarious conditions.

Urban growth has resulted in a dual economy: a minority benefits from development within formal and structured informal sectors, while a large portion – particularly in rural areas – remains excluded due to inadequate infrastructure and limited public investment.

Some West African nations face alarmingly high poverty rates. In the early 2000s, Sierra Leone (66.4%) and Guinea-Bissau (64.7%) were among the countries with the highest proportions of their populations living below the poverty line. Despite progress made over the past two decades, these countries remain highly vulnerable, with approximately 56.8% of their populations still living in poverty as of 2018.

Most countries in the region experienced moderate declines in poverty between 2000 and 2020:

• Sierra Leone: 66.4% in 2000 → 56.8% in 2018
• Togo: 61.7% in 2000 → 45.5% in 2018
• Mali: 44.6% in 2021 (non-linear trend)
• Niger: 40.8% in 2018 (with irregular annual fluctuations)

1 https://www.pulse.ng/articles/business/domestic/: « West Africa’s growth to rise from 3.6% in 2023 to 4.4% by 2025 – AfDB”

2 ghheadlines.com+1ghanabusinessnews.com+1

However, these improvements remain fragile and are often vulnerable to external shocks, including economic crises, armed conflicts, and natural disasters.

Some countries stand out for having implemented relatively effective poverty reduction strategies:

• Ghana: reduction from 31.9% in 2000 to 23.4% in 2016
• Cape Verde: decrease from 56.8% in 2000 to 35.2% in 2015

These outcomes reflect a combination of political stability, investment in human capital, and more inclusive public policies.

In some cases, the analysis of poverty trends is hindered by the lack of reliable data or the discontinuity of statistical series. Countries such as The Gambia, Liberia, and Niger face methodological gaps or inconsistent estimates, complicating accurate assessments of poverty over time.

Spatial Inequalities: Rurality and Territorial Imbalances

Urban–rural inequalities are particularly concerning. Rural populations, which represent between 60% and 70% of national populations in most West African countries, are largely excluded from the main development dynamics. Rural areas suffer from chronic underinvestment in infrastructure, education, healthcare, and market access.

Rapid urbanization is often seen as a response to these territorial imbalances, with cities perceived as hubs of opportunity. However, this unmanaged demographic shift exacerbates vulnerabilities in urban services, such as housing, transport, and employment, and increases internal disparities within urban areas themselves.

Inequalities in Access to Basic Social Services

Beyond economic disparities, significant inequalities persist in access to education, healthcare, employment, and essential services. Unemployment, especially youth-employment, has reached critical levels in many countries, posing serious challenges to social and economic stability. Moreover, women and minority groups often experience intersecting forms of marginalization, driven by restrictive social norms and structural discrimination.

These inequalities undermine the effectiveness of public policies and weaken social cohesion. They limit equitable access to resources, foster feelings of exclusion, and increase the risk of social tensions and political instability.

Structural Vulnerabilities and Governance Challenges

The structural vulnerabilities of West African economies further complicate efforts to achieve inclusive development. The manufacturing sector’s contribution to GDP remains minimal, with countries like The Gambia at 1.7% and Senegal at 15% in 20223. This narrow industrial base limits both job creation and economic diversification.

Furthermore, the region faces significant governance challenges, including corruption, political instability, and weak institutions. These issues undermine public trust and hinder effective policy implementation.

3 https://www.un.org/development/desa/dpad/publication/world-economic-situation-and-prospects-march-2024-briefing-no- 179/?utm_source=chatgpt.com

For instance, countries such as Nigeria and Guinea are consistently ranked among the most corrupt globally, which weakens the impact of development initiatives and erodes public confidence.

The Impact of Conflict and Climate Change

Conflict and climate change further significantly aggravate the development challenges in West Africa. The Sahel region, encompassing countries like Mali, Burkina Faso, and Niger, has faced escalating insecurity, with insurgent groups controlling large territories and displacing millions4. These conflicts disrupt economic activities, displace populations, and place additional pressure on already limited resources.

Simultaneously, climate change poses a growing threat to agriculture, the backbone of many West African economies. Erratic weather patterns, prolonged droughts, and frequent floods have reduced agricultural productivity, further exacerbating food insecurity and poverty5.

Towards Inclusive and Sustainable Development

To harness the potential of its growing economies, West Africa must prioritize inclusive and sustainable development strategies. This requires:

• Investing in Human Capital: Expanding access to quality education and healthcare is critical to building a skilled workforce capable of driving innovation and economic growth.
• Promoting Economic Diversification: Developing sectors such as manufacturing and technology can reduce dependence on volatile commodities and create employment opportunities.
• Strengthening Institutions: Building transparent, accountable, and effective institutions is essential for good governance and the successful implementation of development policies.
• Addressing Climate Change: Implementing sustainable agricultural practices and investing in climate-resilient infrastructure can mitigate the adverse effects of climate change.
• Fostering Regional Integration: Enhancing cooperation among West African countries can lead to shared resources, markets, and collective solutions to common challenges.

Conclusion

West Africa’s current trajectory offers both significant challenges and promising opportunities. While economic growth is undeniable, it is imperative that this growth be both inclusive and sustainable to ensure equitable benefits for all citizens. By tackling structural vulnerabilities, enhancing governance, and investing in human capital, West Africa can lay the foundation for a prosperous and equitable future. The region’s potential is vast, and with coordinated and sustained efforts, it can successfully transform its economic landscape to the benefit of all its people.