Economies worldwide are striving to recover from the devastating impacts of the diverse shocks of COVID-19, the Russia-Ukraine war, and the consequences of the climate crisis. These shocks have led to massive external debt, widening fiscal deficits, food and energy insecurity, global inflation, high levels of unemployment, and stalled economic growth. As a result, two decades of progress on development targets are at risk of being reversed. ACET believes that economic growth, while necessary, is not sufficient to enable this recovery and empower attempts to build forward better. African economies need to transform to ensure inclusive growth and sustainable development.1

ACET’s African Transformation Index 2023 Report shows that more transformed economies are more likely to be resilient to shocks. Unfortunately, many African economies are still struggling to transform and remain vulnerable to persistent negative shocks and their pass-through effects on growth, employment, social outcomes, and social cohesion. A nexus approach is required to explore the interrelationships between economic growth and economic transformation, including the trade-offs and synergies between the two concepts, the challenges that need to be addressed to sustain inclusive growth, and the opportunities available to African economies to “build forward better” in the process.