Cape Town - Despite its promising economic growth, Africa must focus on regional integration and boost its talent, shows a joint study on the continent's competitiveness published in South Africa on Thursday.
The Africa Competitiveness Report 2013 - launched during the World Economic Forum in Cape Town - assesses 38 African countries and concludes that trade restrictions and poor transport infrastructure limit the continent's promising growth.
African economies have seen an average annual growth rate of 5% for a decade, but the living standards of the majority have not been improved.
About half of sub-Saharan Africa's population still struggles to survive on less than $2 a day, the World Bank estimates.
"Regional integration is key to addressing this weakness through the delivery of wider social and economic benefits and should be prioritized by Africa's leaders," said Jennifer Blanke, chief economist of the World Economic Forum.
Africa's population of 1 billion, set to increase to 1.6 billion by 2030, has the potential for economic improvement, the study says, but needs investments in science and innovation, and a focus on quality education and skills development.
Public institutions and infrastructure need to be strengthened, the study noted.
The continent's competitiveness is uneven, with countries including South Africa and Mauritius reasonably strong with 14 out of the world's 20 least competitive countries hailing from Africa.
"Africa's public and private sectors must work together to connect the continent's markets, deepen regional integration, and adopt reforms that enhance national competitiveness," said Gaiv Tata, Africa director at the World Bank group.
Heads of states, entrepreneurs and civil society have on Wednesday gathered in Cape Town for a three-day World Economic Forum that discusses ways to ensure continued economic growth.