A new UN report says diversifying African economies is key to reducing the continent’s dependence on the sale of raw commodities and sustaining economic growth.

The report was released in New York on Monday. It calls for the development of crucial sectors such as telecommunications, agriculture and tourism.

The report notes that global financial and economic crises expose the dependence of African economies on too few export commodities and one or two sectors.

“Such dependence makes many countries vulnerable to fluctuations in commodity prices, demand and extreme weather events such as droughts and floods,” the authors of the report say.

The study, entitled “Economic Diversification in Africa: A Review of Selected Countries”, was prepared by the African Union (AU), the UN Office of the Special Advisor on Africa and the Organisation for Economic Cooperation and Development (OECD).

The study examines how the private sector plays a key role by being at the forefront of innovation, research and development as well as production.

It notes that good governance is required to create an enabling environment for investment and trade, to manage natural resources and to set policies to develop strategic sectors.

“A regional approach to economic diversification is particularly important, especially given the small size of African economies and the benefits of economies of scale from regional initiatives,” the reports states.

It adds that new economic partnerships, including South-South cooperation and relations, offer Africa the opportunity to expand its economic options.

“Aid is no longer the main determinant of policy in the whole paradigm of interaction between governments and donors,” Ibrahim Assane Mayaki, Chief Executive, AU’s National Partnership for Africa’s Development Coordination Agency, told reporters after the launch of the report.

“The private sector, as well as civil society organisations, has a key role to play,” he said.