A review of theories and evidence of inclusive growth: an economic perspective for Africa

•Inclusive growth is relevant for Africa.•Inclusive growth requires transformative local change.•A palatable framework for analyzing inclusive growth is needed.•Labour absorption and increasing productivity are key to inclusive growth in Africa.•High inequality and slow poverty reduction make African growth less inclusive.

Although the concept of inclusive economic growth is relatively nascent, it is now, more than ever, deemed very relevant to Africa. Contrary to the traditional concept of pro-poor growth, which more or less places those at the lower end of the income/wealth distribution spectrum at the margin of the processes of wealth creation, the concept of inclusive growth suggests a more active participation of the poor. An appealing subconcept proposes two pillars-labour absorbing growth and increasing productivity of those who are being employed. Although perhaps the full conceptualization and modelling framework is still to see light, some work has been done to attempt to understand how inclusive the recent surge of growth in Africa might have been. This paper explores the literature of inclusive growth in the African context, from a socio-economic stand point. It attempts to establish the characterizations of inclusive growth in Africa, its underlying arguments and prospects for future theoretical and empirical development.