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Productivecapacities,economicgrowth andpovertyreduction inAfricaUNCTAD regional workshop13 April 2011Addis Ababa, EthiopiaThe issue of productive capacities and poverty reduction has beenof critical importance to Africa over the years. Economic and socialdevelopment in Africa and especially in African LDCs has continued tobe constrained by inadequate productive capacity and low productivitythat adversely affect their efforts to promote high and sustainablegrowth and to reduce poverty.As you know, the continent recorded relatively high GDP growth duringthe last decade, but this growth remains far below its potentialand the level required to make a significant dent on unemploymentand poverty reduction. There is a critical need for Africa to improveproductive capacities, overcome structural impediments and supplysideconstraints and promote structural transformation in order to accelerateand sustain growth, benefit from globalization and achieve itseconomic and social development goals.Some of the factors identified by ECA work as critical to stimulatingproductive capacities for enhanced growth and poverty reduction inAfrica include: stable macroeconomic conditions and a conductive legaland regulatory framework, targeted investments to improve physicalinfrastructure and human capital as well as labor-intensive investmentto create jobs. These factors are critical for reducing transactionscosts, increasing the productivity of factors of production, reducingbottlenecks in the production process and opening up new investmentIntegrating Africa51