In recent years, many African countries have experienced a growth revival, but this has not necessarily generated decent jobs. Unemployment remained high among youth and the adult African population. Little attention has been paid to the role of informal sector in fostering growth and creating jobs. In fact, the informal sector contributes about 55 per cent of Sub-Saharan Africa’s GDP and 80 per cent of the labour force. Nine in 10 rural and urban workers have informal jobs in Africa and most employees are women and youth. The prominence of the informal sector in most African economies stems from the opportunities it offers to the most vulnerable populations such as the poorest, women and youth. Even though the informal sector is an opportunity for generating reasonable incomes for many people, most informal workers are without secure income, employments benefits and social protection. This explains why informality often overlaps with poverty. For instance, in countries where informality is decreasing, the number of working poor is also decreasing and vice versa.

More than 30 million Africans (about three per cent of Africa’s total population) are living outside their home countries. This figure includes those living within other African countries. These African migrants send money to their families in Africa. Remittances by African migrants play an important role as a source of financing and foreign exchange for African households and countries. A recent report published by the United Nations Conference on Trade and Development (UNCTAD) shows that remittances sent to the world’s poorest countries including 33 African countries have increased to US $27 billion in 2011 from US $3.5 billion in 1990. For Africa as a whole, remittance inflows have more than quadrupled since 1990, reaching US $40 billion in 2010. This represents about three per cent of Africa’s total GDP. Globally, the amount of remittances reached US $300 billion in 2010, surpassing foreign direct investments (FDI) and official development assistance (ODA) combined. The estimate for the Africa figure is widely believed to be conservative, given the evidence of underreporting as some remittance transfers are sent through informal channels. Accounting for informal flows could raise the total amount of remittances to Africa by about 50 per cent.

Urbanization is growing in both developed and developing countries. The proportion of the world’s urban population is expected to increase to about 57% by 2050 from 47% in 2000. More than 90% of future population growth will be accounted for by the large cities in the developing countries. In the developing world, Africa has experienced the highest urban growth during the last two decades at 3.5% per year and this rate of growth is expected to hold into 2050. Projections also indicate that between 2010 and 2025, some African cities will account for up to 85% of the population.

Over the last 50 years, Africa has moved from mostly colonial states, through seemingly endless array of development challenges, to a continent on the verge of major political and economic transformation. Over the past decade in particular, despite successive global food and financial crises, Africa has been growing at an unprecedented rate to rekindle a growing optimism about Africa’s potential. Across the continent, there is now a greater sense to seize the initiative and take advantage of the emerging conditions to maximise the continent’s comparative advantages and bring about the necessary structural changes in its economy.

Free and transparent political elections, which permit citizens to effectively express their will and participate in the governance of their country, form an important part of sound democratic institutions.