African Development Bank Group 
DEVELOPING KNOWLEDGE FOR 
ECONOMIC ADVANCEMENT IN AFRICA  
 
Prof. John C. Anyanwu 
Lead Research Economist 
Development Research Department 
African Development Bank 
TRA, Tunis, Tunisia 
* The views expressed here are those of the author and in no way reflect those 
of the AfDB and its Executive Directors.  
KEYNOTE ADDRESS DELIVERED AT THE 2ND INTERNATIONAL CONFERENCE 
ON AFRICAN DIGITAL LIBRARIES AND ARCHIVES (ICADLA-2), 
JOHANNESBURG, SOUTH AFRICA, 17 NOVEMBER 2011 
Outline of Presentation 
I. BRIEF STYLIZED FACTS ON AFRICA’S 
ECONOMIC PERFORMANCE 
II. A SNAPSHOT OF THE CONCEPT OF 
KNOWLEDGE AND ITS ROLE IN ECONOMIC 
ADVANCEMTENT 
III. THE STATE OF KNOWLEDGE IN AFRICA 
IV. RECOMMENDATIONS AND NEXT STEPS 
V. CONCLUSION 
2 
• Robust Growth in Africa 
 
3 
BRIEF STYLIZED FACTS ON AFRICA’S ECONOMIC 
PERFORMANCE 
 
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 20022003200420052006 200720082009 2010
Africa China India Russia Brazil South Africa
4 
BRIEF STYLIZED FACTS ON AFRICA’S ECONOMIC 
PERFORMANCE 
Increases in real GDP growth have not translated into 
significant poverty reduction in Africa 
0
10
20
30
40
50
60
70
80
90
1981 1984 1987 1990 1993 1996 1999 2002 2005
P
e
rc
e
n
t 
Sub-Saharan Africa South Asia East Asia & Pacific
Latin America & Caribbean Europe & Central Asia Middle East & North Africa
Regional Headcount Index for International 
Poverty Line of US$1.25 a day, 1981-2005 
 
5 
BRIEF STYLIZED FACTS ON AFRICA’S ECONOMIC 
PERFORMANCE 
 
Increases in real GDP growth have not translated into reduction of 
the number of the poor in Africa 
0
200
400
600
800
1000
1200
1981 1984 1987 1990 1993 1996 1999 2002 2005
M
ill
io
n
 
Sub-Saharan Africa South Asia East Asia & Pacific
Latin America & Caribbean Europe & Central Asia Middle East & North Africa
Regional Breakdown of Number of Poor (Millions) for 
International Poverty Line of US$1.25 a day, 1981-2005 
Comparative Global Competitiveness Index (GCI) Performance on Broad Indices, 
2010/2011 
    
  
  
SUBINDEXES 
  GCI 2010-2011   
Basic requirements 
  
Efficiency enhancers 
  
Innovation and sophistication 
factors 
Economy Score Score Score Score 
North Africa  4.1 4.5 3.7 3.3 
Sub-Saharan 
Africa  
3.5 3.7 3.4 3.1 
BRICs  4.4 4.6 4.4 3.9 
Latin America & 
Caribbean  
4.0 4.3 3.9 3.4 
Southeast Asia  4.3 4.6 4.2 3.7 
6 
BRIEF STYLIZED FACTS ON AFRICA’S ECONOMIC 
PERFORMANCE 
 
Source: WEF, WB and AfDB (2011) 
Africa is less competitive than other regions 
7 
BRIEF STYLIZED FACTS ON AFRICA’S ECONOMIC 
PERFORMANCE 
 
Source: WEF, WB and AfDB (2011) 
Africa is less competitive than other regions 
Global Competitiveness Index: Comparative Scores, 2010/2011 
  1. Institutions 2. 
Infrastructure 
3. Macroeconomic 
environment 
4. Health 
and primary 
education 
5. Higher 
education 
and training 
6. Goods 
market 
efficiency 
7. Labor 
market 
efficiency 
8. Financial 
market 
development 
9. 
Technological 
readiness 
10. 
Market 
size 
11. Business 
sophistication 
12. 
Innovation 
Economy Score Score Score Score Score Score Score Score Score Score Score Score 
Africa  3.8 2.9 4.1 4.3 3.1 3.8 4.2 3.7 2.9 2.9 3.4 2.9 
BRICs  3.8 4.1 4.8 5.7 4.2 4.0 4.4 4.2 3.6 6.0 4.2 3.6 
Latin 
America & 
Caribbean  
3.6 3.7 4.4 5.6 4.0 3.9 4.0 4.1 3.6 3.6 3.8 2.9 
Southeast 
Asia  
4.1 3.9 5.0 5.5 4.0 4.4 4.7 4.3 3.6 3.9 4.1 3.4 
OECD  4.9 5.2 4.9 6.3 5.2 4.7 4.7 4.6 5.0 4.8 4.9 4.3 
8 
BRIEF STYLIZED FACTS ON AFRICA’S ECONOMIC 
PERFORMANCE 
 Africa lags behind its comparators and developed regions in key social 
indicators 
Table 3: Comparative Basic and Social Indicators 
Indicator Year Africa Developing Countries Developed Countries 
Basic Indicators 
Area ('000 Km²) 30322.57 80975.97 54658.39 
Total Population (millions) 2010 1031.47 5628.53 1068.73 
Urban Population (% of Total) 2010 40.04 44.76 77.66 
Population Density (per Km²) 2010 3.40 66.60 23.10 
GNI per Capita (US $) 2009 1525.42 2780.29 39688.06 
Demographic Indicators 
Dependency Ratio (%) 2010 78.12 52.80 .. 
Life Expectancy at Birth - Total (years) 2010 56.02 65.68 79.81 
Infant Mortality Rate (per 1,000) 2010 77.95 53.09 5.75 
Child Mortality Rate (per 1,000) 2010 127.22 51.38 6.30 
Total Fertility Rate (per woman) 2010 4.44 2.67 1.77 
Maternal Mortality Rate (per 100,000) 2008 530.21 440.00 10.00 
Health & Nutrition Indicators 
Physicians (per 100,000 people) 2007 46.71 77.00 287.00 
Access to Safe Water (% of Population) 2008 64.93 83.99 99.58 
Access to Health Services (% of Population) 2000 65.32 80.00 100.00 
Access to Sanitation (% of Population) 2008 40.82 54.60 99.85 
Percent. of Adults (aged 15-49) Living with HIV/AIDS 2007 4.56 161.86 14.14 
Child Immunization Against Tuberculosis (%) 2008 85.05 89.00 99.00 
Child Immunization Against Measles (%) 2008 83.72 76.00 92.62 
Daily Calorie Supply per Capita 2007 2461.74 2675.20 3284.70 
Public Expenditure on Health (as % of GDP) 2008 2.41 4.00 6.87 
Education Indicators 
Primary School – Total 2009 102.51252 106 101.4997 
Secondary School – Total 2005 36.827545 62.31893 100.28181 
Adult Literacy Rate - Total (%) 2006 64.796857 19.02674 .. 
Percentage of GDP Spent on Education 2008 4.563138 .. 5.41659 
Sources  :  ADB Statistics Department Databases;  World Bank: World Development Indicators 
              UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports. 
Note :  … : Data Not Available. 
  Explicit knowledge as a Implicit/Tacit 
knowledge 
Public good Private good   
On-market 
acquisition 
- 
  
-Purchase of patents, 
licenses, software 
- Contracted research 
-Hiring and service contracts 
with carriers of implicit 
knowledge 
Off-market 
acquisition 
-Apprenticeship in public 
institutions 
-Learning through texts and 
software 
Spillover in the form of: 
- Reverse engineering 
- Learning-by-watching 
- Learning on  
basis of patent 
documentation 
Spillover in the form of: -
Learning-by-doing 
-Learning-by-watching 
-Learning-by-interacting 
9 
A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLE 
IN ECONOMIC ADVANCEMTENT 
 
 
Forms of Knowledge and Ways of their Acquisition 
. 
Knowledge is a multi-dimensional concept, consisting of ideas, facts, mental constructs, 
information, stories, pictures, data, instructions, and the sum total of symbolic structures 
possessed by individuals, institutions, and societies, which guide behaviour in all walks of 
life and in all spheres of public and private activity. 
Source: Kober (2009) 
10 
A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLE 
IN ECONOMIC ADVANCEMTENT 
 
Source: Newman and Conrad (1999) 
The General Knowledge Model 
• Relationships of Knowledge Index and Indicators  
11 
A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLE 
IN ECONOMIC ADVANCEMTENT 
Knowledge Index (KI) 
Education Index Innovation Index ICT Index 
Adult literacy rate 
Secondary enrollment 
Tertiary enrollment 
R & D researchers  
Patent count  
Journal articles 
Telephones Computers  
Internet users 
Source: Adapted from World Bank Institute (2007) 
• The Three Interactive Pillars of the Knowledge Interacting with 
Economic and Institution Regime (EIR) 
12 
A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLE 
IN ECONOMIC ADVANCEMTENT 
Source: Adapted from World Bank Institute (2007) 
  
   Education 
  
An educated and skilled 
population can use 
knowledge effectively 
Innovation 
system 
A system of organizations 
that can tap into global 
knowledge to assimilate and 
adapt it, as well as create 
local knowledge 
Facilitates the effective communication, 
processing and dissemination of information 
Information 
Infrastructure 
  
EIR provides 
incentives for the 
efficient creation, 
dissemination, and 
use of existing 
knowledge 
Economic and 
Institutional Regime (EIR) 
• Effects of Knowledge on Competitiveness and Economic 
Advancement 
13 
A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLE 
IN ECONOMIC ADVANCEMTENT 
Source: Adapted from World Bank Institute (2007) 
Intangible investments 
Education  
Training 
R&D 
ICT 
  
  
Higher skill levels 
Innovations in products and processes 
Incorporation of new technologies 
  
  
Greater competitiveness 
Lower costs 
Access to new markets 
Increased quality 
  
Increased GDP per capita 
Higher salaries and wages 
Improvements in external balances 
  
  
  
• Illustration of Knowledge as the Foundation of Economic 
Advancement: South Korea vs Ghana 
14 
A SNAPSHOT OF THE CONCEPT OF KNOWLEDGE AND ITS ROLE 
IN ECONOMIC ADVANCEMTENT 
Source: Adapted from World Bank Institute (2007) 
15 
THE STATE OF KNOWLEDGE IN AFRICA 
 
0
1
2
3
4
5
6
7
8
9
10
In
d
e
x
 
Knowledge Index Scores by Regions and Income Groups, 2009 
Knowledge Index
Innovation Index
Education Index
ICT Index
In terms of knowledge index, Africa is trumped by 
other regions 
16 
THE STATE OF KNOWLEDGE IN AFRICA 
 
0
1
2
3
4
5
6
7
8
9
10
Knowledge Index
Innovation Index
Education Index
ICT Index
Africa's Knowledge Scorecard (2009) is Abysmally Poor 
 G7
 Western Europe
Africa
Europe and Central Asia
East Asia and the Pacific
Latin America
USA
17 
THE STATE OF KNOWLEDGE IN AFRICA 
 
0
1
2
3
4
5
6
7
8
9
10
Royalty Payments and
receipts(US$/pop.)
S&E Journal Articles / Mil. People
Patents Granted by USPTO / Mil.
People
Adult Literacy Rate (% age 15 and
above)
Gross Secondary Enrollment rateGross Tertiary Enrollment rate
Total Telephones per 1000 People
Computers per 1000 People
Internet Users per 1000 People
Africa is Lagging on All Components of Knowledge 
Africa G7 Western Europe East Asia & the Pacific Europe and Central Asia Latin America USA
18 
THE STATE OF KNOWLEDGE IN AFRICA 
 
0
0.5
1
1.5
2
2.5
3
Knowledge Index
Innovation Index
Education Index
ICT Index
Declining Knowledge in Africa 
2009
2000
19 
THE STATE OF KNOWLEDGE IN AFRICA 
Retreating Knowledge in Africa 
 :estern (urope
 *
 (urope and &entral $sia (ast $sia and the 3acific
 $ll &ountries
 0iddle (ast and 1orth $frica
 /atin $merica
Sub-Saharan Africa
 6outh $sia
 +igh ,ncome
 8pper 0iddle ,ncome
 /ower 0iddle ,ncome
 /ow ,ncome
Africa
2
4
6
8
1
0
2
0
0
9
2 4 6 8 10
2000
Knowledge Index Fitted values
Knowledge Index: Relative Performance Over Time by Region and Income Group
Improvement 
Regression 
20 
THE STATE OF KNOWLEDGE IN AFRICA 
Retreating Knowledge in Africa 
Algeria
Angola
Benin
Botswana
Burkina Faso
Cameroon
Cape Verde
Cote d'Ivoire
Djibouti
Egypt, Arab Rep.
Eritrea
Ethiopia
Ghana
Guinea
Kenya
Lesotho
Madagascar
Malawi
Mali
Mauritania
Mauritius
Morocco
Mozambique
Namibi
Nigeria
Rwanda
S negal
Sierr  Leone
South Africa
Sudan
Swaziland
Tanzania
Tunisia
Uganda
Zambi
Zimbabwe
1
2
3
4
5
2
0
0
9
1 2 3 4 5 6
2000
KI Fitted values
Knowledge Index: Relative Performance Over Time
Improvement 
Regression 
21 
THE STATE OF KNOWLEDGE IN AFRICA 
Africa is poorest in Adult Literacy 
0
20
40
60
80
100
120
1985-1994 1995-2004 2005-2009 1985-1994 1995-2004 2005-2009 1985-1994 1995-2004 2005-2009
A
d
u
lt
 L
it
e
r
a
c
y
 R
a
te
 (
%
) 
Comparative Adult Literacy Rate (%) 
World
Africa
North America
South America
Asia
Europe
Oceania
22 
THE STATE OF KNOWLEDGE IN AFRICA 
SSA’s primary school Enrolment is Improving 
40
60
80
100
120
140
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
G
r
o
s
s
 E
n
r
o
lm
e
n
t 
R
a
ti
o
 
Comparative Gross Enrolment Ratio - Primary Education 
Middle East and North Africa
Central and Eastern Europe
Central Asia
East Asia and the Pacific
Latin America and the Caribbean
North America and Western Europe
South and West Asia
Sub-Saharan Africa
23 
THE STATE OF KNOWLEDGE IN AFRICA 
SSA trails behind all the regions of the world on 
secondary school enrolment 
0
10
20
30
40
50
60
70
80
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
G
r
o
s
s
 E
n
r
o
lm
e
n
t 
R
a
ti
o
  
Comparative Gross Enrolment Ratio - Secondary Education 
Middle East and North Africa
Central and Eastern Europe
Central Asia
East Asia and the Pacific
Latin America and the Caribbean
North America and Western Europe
South and West Asia
Sub-Saharan Africa
24 
THE STATE OF KNOWLEDGE IN AFRICA 
SSA trails below the rest of the regions in terms 
of tertiary education enrolment 
0
10
20
30
40
50
60
70
80
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
G
r
o
s
s
 E
n
r
o
lm
e
n
t 
R
a
ti
o
  
Comparative Gross Enrolment Ratio - Secondary Education 
Middle East and North Africa
Central and Eastern Europe
Central Asia
East Asia and the Pacific
Latin America and the Caribbean
North America and Western Europe
South and West Asia
Sub-Saharan Africa
25 
THE STATE OF KNOWLEDGE IN AFRICA 
Africa lags behind other regions by a wide margin 
in terms of research and development (R&D) 
investment 
0
50
100
150
200
250
300
350
400
450
Americas Europe Africa Asia Oceania
B
il
li
o
n
 P
P
P
$
 
Comparative R& D Expenditure (in billion PPP$) 
2002
2007
26 
THE STATE OF KNOWLEDGE IN AFRICA 
Africa lags behind other regions by a wide margin 
in terms of research and development (R&D) 
investment 
0
100
200
300
400
500
600
Americas Europe Africa Asia Oceania
P
P
P
$
 
Comparative R&D Per Capita (in PPP$) 
2002
2007
27 
THE STATE OF KNOWLEDGE IN AFRICA 
Africa  also has relatively the lowest levels in terms of 
the number of researchers in R&D per million people 
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Americas Europe Africa Asia Oceania
R
e
s
e
a
r
c
h
e
r
s
 p
e
r
 m
il
li
o
n
 i
n
h
a
b
it
a
n
ts
 
Comparative Number of Researchers Per Million Inhabitants 
2002
2007
28 
THE STATE OF KNOWLEDGE IN AFRICA 
Africa  has the lowest levels of mobile cellular 
subscriptions & fixed telephone lines 
0
20
40
60
80
100
120
140
160
2005 2006 2007 2008 2009 2010
Mobile Cellular Subscriptions 
(Per 100 Inhabitants) 
Africa
Arab States
Asia & Pacific
CIS
Europe
The Americas
0
5
10
15
20
25
30
35
40
45
50
2005 2006 2007 2008 2009 2010
Fixed Telephone Lines (Per 100 
Inhabitants) by Region 
Africa
Arab States
Asia & Pacific
CIS
Europe
The Americas
29 
THE STATE OF KNOWLEDGE IN AFRICA 
Africa  has the lowest levels of active mobile broadband 
subscriptions & Internet users 
0
5
10
15
20
25
30
35
40
45
2007 2008 2009 2010
Active Mobile Broadband 
Subscriptions (per 100 
Inhabitants) by Region 
Africa
Arab States
Asia & Pacific
CIS
Europe
The Americas
0
10
20
30
40
50
60
70
80
Internet Users (per 100 
Inhabitants) by Region 
Africa
Arab States
Asia &
Pacific
CIS
Europe
The
Americas
30 
THE STATE OF KNOWLEDGE IN AFRICA 
Africa  has the lowest levels of fixed broadband 
subscriptions 
0
5
10
15
20
25
2005 2006 2007 2008 2009 2010
Fixed (Wired) Broadband Subscriptions (per 100 
Inhabitants) by Region 
Africa
Arab States
Asia & Pacific
CIS
Europe
The Americas
31 
THE STATE OF KNOWLEDGE IN AFRICA 
Positive Correlation between Knowledge and Current 
Economic Performance – Dominance of Advanced 
Economies 
AlbaniaAlgeriaAngola
Argentina
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Barbados
Belarus
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
Bulg ria
Burkina FasoC mbo ia
C m roon
Canada
Cape Verde
Chile
Chi a
Colombia
Costa Rica
Cote 'Ivoire
Croatia
Cyprus
Czech Republic
Denmark
Djibouti
Dominic
Dominic n Republic
Ecuador
Egypt, Arab Rep.
El S lvador
Eritrea
E tonia
Ethiop a
Fiji
Finland
France
Georgia
Germ ny
Ghana
Greece
Guatemala
Gu n
Guyana
Honduras
Hong Kong, China
Hungary
Iceland
India
Indon sia
Iran, Isl mic Rep.
Ireland
Israel
Italy
J a a
Japan
Jor
Kazakhstan
Ke ya
Kor a, Rep.
Kuwait
Kyrgyz Rep.La  PDR
Latvia
Leb non
Lesoth
Lithuania
Luxembourg
Mac donia, FYR
M dag sc rMalawi
Malaysi
M li
Malta
M uritania
Mauritius
Mexico
M ldovaMongolia
M r cco
Moz mbique
N mibia
Nepal
Netherlands
New Zealand
Nic raguaNigeria
Norway
Oman
P kist
Panama
Par g y
Peru
Philip ines
Poland
Portugal
Qatar
Romania
Russi n Federation
Rwand
Saudi Arabia
S egal
S rbi
Sierr  L on
Singapore
Slovak Republic
Slovenia
Sout  Afric
Spain
ri Lanka
Sud
Sw zil nd
Swe en
Switzerland
Syrian A b Republic
TajikistanT z nia
Th iland
Trinidad and Tobag
Tun i
Turkey
U
Ukraine
United Arab Emirates
United Kingdom
Un ted States
Uruguay
Uzbekista
Venezuela, RB
Vietn mYem n, ep.Zamb
Zimb bw0
2
0
0
0
0
4
0
0
0
0
6
0
0
0
0
8
0
0
0
0
1
0
0
0
0
0
G
D
P
 
P
e
r
 
C
a
p
i
t
a
0 2 4 6 8 10
Knowledge Index
GDP per capita (current US$)2009 Fitted values
Knowledge Index and GDP Per Capita in 2009
32 
THE STATE OF KNOWLEDGE IN AFRICA 
Close correlation between the Knowledge Index 
and GDP per Capita in Africa 
Algeria
Angola
Benin
Botswana
Burkina Faso
Cameroon
Cape Verde
Cote d'IvoireDjibouti
Egypt, Arab Rep.
EritreaEthiopia
Ghana
Guinea
Kenya
Lesotho
M dagascar
Malawi
Mali
Mauritania
Mauritius
Morocco
Moz mbique
Namibia
Nig ria
R anda
Senegal
Sierra Leone
South Africa
Sudan
Swaziland
Tanz nia
Tunisia
Ug nda
Zambia
Zimbabwe
0
2
0
0
0
4
0
0
0
6
0
0
0
8
0
0
0
G
D
P
 
P
e
r
 
C
a
p
i
t
a
1 2 3 4 5
Knowledge Index
GDP per capita (current US$)2009 Fitted values
Knowledge Index and GDP Per Capita of African Countries in 2009
33 
THE STATE OF KNOWLEDGE IN AFRICA 
Close correlation between the Knowledge Index 
and Economic Growth in Africa 
Algeria
Angola
Benin
Botswana
Burkina Faso
Cameroon
Cape Verde
Cote d'Ivoire
Djibouti
Egypt, Arab Rep.
Eritrea
Ethiopia
Ghana
Guinea
Kenya
Lesotho
Madagascar
Malawi
Mali
Mauritania
Mauritius
Morocco
Mozambique
Namibia
Nigeria
Rwanda
Senegal
Sierra Leone
South Africa
Sudan
Swaziland
Tanzania
Tunisia
Uganda
Zambia
Zimbabwe
-
5
0
5
1
0
R
e
a
l
 
G
D
P
 
G
r
o
w
t
h
 
R
a
t
e
 
(
%
)
1 2 3 4 5
Knowledge Index
GDP growth (annual %)2009 Fitted values
Knowledge Index and Economic Growth of African Countries in 2009
34 
THE STATE OF KNOWLEDGE IN AFRICA 
Close correlation between the Knowledge Index 
and Human Development in Africa 
Algeria
Angola
Benin
Botswana
Burkina Faso
Cameroon
Cape Verde
Cote d'Ivoire
Djibouti
Egypt, Arab Rep.
Ethiopia
Ghana
Guinea
Kenya
Lesotho
Madagascar
Malawi
Mali
Mauritania
Mauritius
Morocco
Mozambique
Namibia
Nigeria
Rwanda
Senegal
Sierra Leone
South Africa
Sudan
Swaziland
Tanzania
Tunisia
Uganda
Z mbia
Zimbabwe
.
2
.
4
.
6
.
8
1
H
u
m
a
n
 
D
e
v
e
l
o
p
m
e
n
t
 
I
n
d
e
x
1 2 3 4 5
Knowledge Index
human development index Fitted values
Knowledge Index and HDI of African Countries in 2009
35 
THE STATE OF KNOWLEDGE IN AFRICA 
African countries that score higher on the 
Knowledge Index have higher levels of 
economic development 
0
1
2
3
4
5
6
In
d
e
x
 
Africa's First-11 Knowledge 
Index 'Players', 2009 
0
1000
2000
3000
4000
5000
6000
7000
U
S
$
 
Africa's First-Eleven GDP Per 
Capita 'Players', 2009 
36 
THE STATE OF KNOWLEDGE IN AFRICA 
Knowledge accumulation is associated with 
higher rates of future per capita GDP in Africa 
Algeria
Angola
Benin
Botswana
Burkina Faso
Cameroon
Cape Verde
&{te d¶,voire
Djibouti
Egypt
Eritrea
Ethiopia
Ghana
Guinea
Kenya
Lesotho
Madagascar
Malawi
Mali
Mauritania
Mauritius
Morocco
Mozambique
Namibia
Nigeria
Rwanda
Senegal
Sierra Leon
South Africa
Sudan
Swaziland
Tanzania
Tunisia
Ug nda
Z mbia
Zimbabwe
5
6
7
8
9
1
0
P
e
r
 
C
a
p
i
t
a
 
G
D
P
 
i
n
 
2
0
0
5
-
2
0
0
9
0 .5 1 1.5 2
Knowledge Index in 2000
(mean) lgdppc20052009 Fitted values
Knowledge Index in 2000 and Per Capita GDP of African Countries in 2005-2009
R2=0.82 
37 
THE STATE OF KNOWLEDGE IN AFRICA 
A one-unit improvement in the KI leads to an increase 
of 0.90 percentage point in per capita GDP 
Variable Coefficient 
KI2000 
  
Investment rate 
  
Trade openness 
  
Share of urban population 
  
Inflation rate 
  
Constant 
0.899 
(2.76**) 
0.872 
(1.87*) 
0.366 
(1.33) 
0.516 
(2.54**) 
0.032 
(0.26) 
0.426 
(0.29) 
 Simple Regression of the Effect of Knowledge on Future per Capita GDP, Dependent 
Variable is per Capita GDFP in 2005-2009 
** Significant at 5% significant level; * significant at 10% significant level. 
• Developing Educated and Skilled Workers  
Creating a culture of continuous learning and 
openness to new ideas is critical for creating a 
knowledge-based economy in Africa.  
Setting up a computer-based functional literacy 
(CBFL) programme to arrest adult illiteracy. 
 Investing in hiring more qualified teachers and 
improved pupil-teacher ratios in schools. 
A new system to focus on learning, rather than 
on schooling, and promote creativity.  
 
38 
RECOMMENDATIONS AND NEXT STEPS 
 
• Developing Educated and Skilled Workers  
Drastically upgrading higher education - 
improved training programmes and closer links 
between tertiary and vocational educational 
institutions o as well as private sector. 
Emphasize the enrolment and teaching of 
sciences, math, and engineering technology 
  Stronger university-industry linkages  
 Increased involvement of the private sector, 
Missions and NGOs – including PPPs in 
education provision 
39 
RECOMMENDATIONS AND NEXT STEPS 
 
• Creating an Efficient Innovation System  
 Increasing R&D investment; strengthening African 
countries’ R&D infrastructure,  developing technological 
innovations and altering the mind-set of its people 
toward better creation, acquisition, and use of 
technology 
40 
RECOMMENDATIONS AND NEXT STEPS 
 
Impact on national 
economy and society 
Investments  Results  Direct effects  
 Renewing business 
structure 
  
 Affluence 
  
  
 Regional vitality 
  
 Employment 
  
  
 Environment and health 
  
 Security and safety 
  
 Social well-being 
 Start-ups, new 
business areas 
and services 
  
 Growth and 
globalization of 
companies  
 Productivity 
 Competence  
  
 New knowledge 
  
  
 New business models 
  
 Networking 
 Innovations: products 
and services, methods 
and processes, 
organizational 
innovations 
  
 R&D 
investment 
• Creating an Efficient Innovation System  
Innovation policies and increased R&D 
investments are needed in each country in 
addition to regional strategies 
Science and Technology Councils are necessary 
at the Presidency or Prime Minister levels 
Collaboration and linkages among local firms, 
universities, and research institutes and the 
worldwide R&D network of multinationals  
Leveraging abundant Diaspora knowledge 
41 
RECOMMENDATIONS AND NEXT STEPS 
 
• Creating an Efficient Innovation System  
Leapfrogging to innovation-driven economy 
42 
RECOMMENDATIONS AND NEXT STEPS 
 
Path to Knowledge-Based Economy: African Countries Need to 
Leap-Frog to Reach the Knowledge- Based Economy Stage Soon 
  
  
  
Factor Driven 
Economy 
  
Investment 
Driven 
Economy 
Country is a 
Source of… 
  
Innovation 
Driven 
Economy 
Knowledge-Based 
Economies 
…cheap and 
abundant natural 
resources 
…additional value beyond 
basic manufacturing 
Local 
Companies
… 
…occupy a small 
part of the value 
chain 
…focus on product 
design, distribution, and 
marketing 
Workers… …are uneducated and 
focus on low-value 
added tasks 
…have basic education 
but lack technical skills 
Country 
Examples
: 
 Nigeria 
 Ang
ola  Morocco 
 Other African 
Countries   
 Saudi 
Arabia  China 
 Brazil 
…unique high-
value products 
and services 
…driven advances 
in technology and 
business methods 
…are well educated 
and highly skilled 
 United 
States  South 
Korea  Finlan
d 
• Creating an Efficient Innovation System  
Establishment of science and technology 
parks 
Encouraging venture capital 
development and angel funds 
Develop communication and other 
infrastructure for R&,  
Creating an attractive environment to 
motivate R&D investments, including 
favourable tax, and other incentives. 
43 
RECOMMENDATIONS AND NEXT STEPS 
 
• Creating an Efficient Innovation System  
Attracting more foreign direct 
investment (FDI) 
Changing the way students are trained–-a 
process that will require changes in the 
education system, labour markets, and 
government policies 
Establishing incubators  
 
44 
RECOMMENDATIONS AND NEXT STEPS 
 
• Building a dynamic information infrastructure  
Having national and regional ICT Plans 
(including broadband plans) with a Digital 
Agenda  
Improving the overall environment for 
innovation and ICT 
Establishing an innovation-friendly 
environment and setting the ICT vision for 
the future  
Providing firms and consumers with 
incentives to extract value from the use of 
broadband 
45 
RECOMMENDATIONS AND NEXT STEPS 
 
• Building a dynamic information infrastructure  
Efficiently allocating assets that the public 
sector controls or influences  
Encouraging the deployment, adoption, and 
use of broadband in areas where the market 
alone is not enough  
Ensuring robust competition in 
telecommunications, including digital 
democracy 
Ensuring robust competition (including 
privatization) in the power sector 
46 
RECOMMENDATIONS AND NEXT STEPS 
 
• Strengthening the Economic and Institutional 
Regime – a number of African countries have 
made giant strides in reforms 
47 
RECOMMENDATIONS AND NEXT STEPS 
 
Algeria
Angola
Benin
Botswana
Burkina Faso
Cameroon
Cape Verde
&{te d¶,voire
Djibouti
Egypt
Eritrea
Ethiopia
Ghana
Guinea
Kenya
Lesotho
Madagascar
Malawi
Mali
Mauritania
Mauritius
Morocco
Mozambique
Namibia
Nigeria
Rwanda
Senegal
Sierra Leone
South Africa
Sudan
Swaziland
TanzaniaTu sia
Uganda
Zambia
Zimbabwe
0
2
4
6
8
E
c
o
n
o
m
i
c
 
a
n
d
 
I
n
s
t
i
t
u
t
i
o
n
a
l
 
R
e
g
i
m
e
 
I
n
d
e
x
 
i
n
 
2
0
0
9
0 10 20 30 40 50
Countries in Alphabetical Order
Economic Incentive Regime Fitted values
Economic and Institutional Regime Index By Country in 2009
Algeria
Angola
Benin
Botswana
Burkina Faso
Cameroon
Cape Verde
&{te d¶,voire
Djibouti
Egypt
Eritrea
Ethiopia
Ghana
Guinea
Kenya
Lesotho
Madagascar
Malawi
Mali
Mauritania
Mauritius
Morocco
Mozambique
Namibia
Nigeria
Rwanda
Senegal
Sierra Leone
South Africa
Sudan
Swazil nd
Tanzania Tunisia
Uganda
Zambia
Zimbabwe
0
2
4
6
8
2
0
0
9
0 2 4 6
2000
Economic Incentive Regime Fitted values
Eco omic and Institutional Regime Index: Relative Performance Over Time
• Strengthening the Economic and Institutional 
Regime  
Consolidating macroeconomic stability;  
Strengthening banking systems to enhance 
domestic resource mobilization;  
Developing capital markets by improving the 
regulatory framework, reforming labor 
market practices; 
Accelerating the pace of privatization and 
broadening the domestic investor base.  
measures to attract larger volumes of foreign 
private capital inflows. 
48 
RECOMMENDATIONS AND NEXT STEPS 
 
• Strengthening the Economic and Institutional 
Regime  
Reforming and strengthening judicial and legal 
systems and putting in place effective and 
transparent regulatory frameworks 
Physical infrastructure (including ICT 
infrastructure) development  
Strengthening governance through the 
development of participatory decision-making 
processes 
 Improving public service delivery, strengthening 
capacities, and ensuring greater accountability 
and transparency in public administration. 
49 
RECOMMENDATIONS AND NEXT STEPS 
 
• More than money, needed: political, commitment, 
transparency & accountability, collaborative spirit to 
formulate the requisite policies, strategies, plans and 
collective action as well as the institutional changes 
needed for leapfrogging to a knowledge-based and 
innovation-driven economy for economic advancement 
of Africa.  
• African countries to redouble their efforts to mobilize 
domestic revenues 
• Leveraging resources from emerging partners like the 
BRICs 
• Conference to provide answers to key digitization 
questions 
• Africa is reborn with a new optimistic face & at a 
turning point, in spite of challenges. 
50 
CONCLUSION 
Thank you for 
Your Kind 
Attention 
 
51