African ‘transition states’ at crossroads: experts call for reforms, innovation, and investment

Leading African economists and policymakers have sounded the alarm on the urgent need for governance reforms,domestic resource mobilization,and strategic partnerships to transform the continent’s fragile “transition states” from crisis to growth.

Speaking at a recent high-level policy dialogue during the 66th Annual Conference of the Nigerian Economic Society,experts emphasized that 24 African countries — plagued by conflict,weak institutions,and economic instability — must undergo structural transformation to achieve the African Union’s Agenda 2063 goals. “Africa requires $811 billion per annum in financing to achieve inclusive growth and sustainable development. Yet the continent faces a funding gap of about $680 billion each year,” said Abdul Kamara,AfDB’s Nigeria Director General. “Transition states alone need $210 billion yearly,with a $188 billion shortfall,” Kamara added.

Experts warned that fragility affects over 250 million Africans,with climate shocks and conflict pushing millions into displacement. Eric Ogunleye of the African Development Institute (ADI) stressed the importance of locally tailored policies,not imported solutions. Panelists including Emmanuel Owusu-Sekyere of the African Center for Economic Transformation (ACET) and Adeyemi Dipeolu of the ADI called out corruption,low tax revenues,and $90 billion in illicit outflows as major hurdles. Africa’s tax-to-GDP ratio lags at just 17%,well below global averages. The AfDB is backing its analysis with dedicated funding windows and initiatives focused on youth,innovation,and capacity development. Experts agreed that progress hinges on better governance,smarter financing,and long-term partnerships. “The most important thing is to ensure reforms focus on establishing good governance and visionary leadership,” said Owusu-Sekyere. “That is where the buck starts and ends.”