The African Economic Outlook 2013 states that African countries must take full advantage of their natural resource wealth to accelerate the pace of growth and ensure the process can benefit ordinary Africans. It also stresses that this must be accompanied by inclusive social policies that seek to reduce inequality in the continent.

"Now is the time to step up the tempo of economic transformation, so that African economies become more competitive and create more gainful jobs," said the authors of the report, adding that "widening the sources of economic activity is fundamental to meeting this challenge."

The report says the continent's economic prospects for 2013 and 2014 are promising, with the economy projected to grow by 4.8 per cent the first year and accelerate further to 5.3 per cent the next.

However, it emphasizes that economic growth alone will no be enough to reduce poverty, tackle persistent unemployment, and address income inequalities and deteriorating levels of health and education.

According to the report, four key elements are necessary for inclusive growth. These consist of: creating the right conditions for transformation including infrastructure and the creation of more competitive markets; implementing more effective tax systems as well as improving land management; ensuring proceeds from natural resources are invested in projects that benefit civil society; and actively fostering economic diversification.