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Pathways to progress: Unveiling structural change in Africa through economic transformation, technology, talent, and tourism

Author: Pinto, Hugo,Odoi, Evans,Nogueira, Carla,Viana, Luiz Fernando Câmara
Publisher: Basel: MDPI
Year: 2025
DOI: 10.3390/economies13010021
Source: https://www.econstor.eu/bitstream/10419/329301/1/economies-13-00021.pdf
Pin o, Hugo; Odoi, E ans; Noguei a, Ca la; Viana, Luiz Fe nando Câma a
A icle
Pa hways o p og ess: Un eiling s uc u al change in
A ica h ough economic ans o ma ion, echnology,
alen , and ou ism
Economies
P o ided in Coope a ion wi h:
MDPI – Mul idisciplina y Digi al Publishing Ins i u e, Basel
Sugges ed Ci a ion: Pin o, Hugo; Odoi, E ans; Noguei a, Ca la; Viana, Luiz Fe nando Câma a (2025) :
Pa hways o p og ess: Un eiling s uc u al change in A ica h ough economic ans o ma ion,
echnology, alen , and ou ism, Economies, ISSN 2227-7099, MDPI, Basel, Vol. 13, Iss. 1, pp. 1-22,
h ps://doi.o g/10.3390/economies13010021
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Academic Edi o : Bedassa Tadesse
Recei ed: 23 No embe 2024
Re ised: 8 Janua y 2025
Accep ed: 9 Janua y 2025
Published: 15 Janua y 2025
Ci a ion: Pin o, H., Odoi, E., Noguei a,
C., & Viana, L. F. C. (2025). Pa hways
o P og ess: Un eiling S uc u al
Change in A ica Th ough Economic
T ans o ma ion, Technology, Talen ,
and Tou ism. Economies,13(1), 21.
h ps://doi.o g/10.3390/
economies13010021
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licenses/by/4.0/).
A icle
Pa hways o P og ess: Un eiling S uc u al Change in A ica
Th ough Economic T ans o ma ion, Technology,
Talen , and Tou ism
Hugo Pin o 1,2,3,* , E ans Odoi 1, Ca la Noguei a 1,2 and Luiz Fe nando Câma a Viana 4
1Facul y o Economics, Uni e si y o Alga e, 8005-139 Fa o, Po ugal; [email p o ec ed] (E.O.);
[email p o ec ed] (C.N.)
2CinTu s—Resea ch Cen e o Tou ism, Sus ainabili y and Well-Being, Uni e si y o Alga e,
8005-139 Fa o, Po ugal
3CES—Cen e o Social S udies, Colégio de S. Je ónimo, 3000-995 Coimb a, Po ugal
4Fede al Ins i u e o B asília, B asília 70830-450, DF, B azil; [email p o ec ed]
*Co espondence: [email p o ec ed]
Abs ac : A ican economies a e unde going signi ican s uc u al ans o ma ion, an-
si ioning om ag icul u e o manu ac u ing, se ices, and echnology-d i en indus ies.
D i en by u baniza ion, echnological inno a ion, and global ade, his shi o e s op-
po uni ies o sus ainable g ow h bu aces challenges such as in as uc u e gaps and
ins i u ional hu dles. This pape examines he dynamics o s uc u al change in 54 A ican
coun ies, ocusing on he oles o echnology, alen , and ou ism. Using Wo ld Bank da a,
ac o and clus e analyses e eal i e la en componen s: s uc u al condi ions, public
sec o capaci ies, dynamic condi ions, u baniza ion, and g ow h. The analysis ca ego izes
coun ies in o six clus e s, om De eloping Economies o A ican Powe houses. The
indings emphasize he c i ical ole o echnology in boos ing p oduc i i y, he impo ance
o alen de elopmen h ough educa ion and wo k o ce in eg a ion, and he po en ial o
sus ainable ou ism o d i e ans o ma ion. This esea ch p o ides a comp ehensi e ame-
wo k o unde s anding A ica’s s uc u al ans o ma ion, o e ing ac ionable insigh s o
add ess dispa i ies and p omo e equi able de elopmen ac oss he con inen .
Keywo ds: A ica; s uc u al change; economic ans o ma ion; echnology; alen
de elopmen ; ou ism
1. In oduc ion
S uc u al change is a cen al heme o economic de elopmen , c ucial o os e ing a
sus ainable ansi ion and add essing global inequali ies (Rod ik,2013). O e he las wo
decades, globaliza ion has accele a ed s uc u al ans o ma ion, o e ing unp eceden ed
oppo uni ies o economic expansion while in oducing challenges such as social ensions,
en i onmen al conce ns, and esou ce misalloca ion (Ka imu,2019). S uc u al change,
de ined as he ealloca ion o esou ces ac oss sec o s, enhances p oduc i i y, gene a es
employmen , and d i es sus ainable de elopmen (Islam & I e sen,2018). This p ocess
is pa icula ly signi ican o A ica, whe e he ansi ion om ag a ian economies o
manu ac u ing, se ices, and echnology-d i en sec o s has gained momen um (G abowski
& Sel ,2024;Nguimkeu & Zeu ack,2024).
The li e a u e highligh s he mul i ace ed na u e o s uc u al ans o ma ion (Sen,2023).
Key d i e s include u baniza ion, echnological inno a ion, and global ade (Ke els,2017).
Howe e , schola s deba e i s implica ions, especially conce ning inequali y and ins i u ional
Economies 2025,13, 21 h ps://doi.o g/10.3390/economies13010021
Economies 2025,13, 21 2 o 22
ba ie s (McMillan e al.,2016;Gaba do & Pe eima,2017). A ica’s unique economic and
cul u al con ex adds complexi y, as i s s uc u al change is shaped by di e se condi ions,
om demog aphic shi s o echnological adop ion and esou ce managemen (Nayya ,2019;
Wo ld Bank,2019). S uc u al change was g ow h-enhancing in A ica a e 2000, as labo
p oduc i i y inc eased in se e al coun ies, including Nige ia, Zambia, and Ghana, bu A ican
coun ies may be bypassing he indus ializa ion s age ha was so impo an o o he coun ies
such as B azil o Vie nam ha unde wen apid g ow h (McMillan e al.,2016). The A ican
expe ience is pa icula ly no ewo hy, as g ow h-enhancing s uc u al change o en came a
he cos o declining labo p oduc i i y g ow h in he mo e mode n sec o s o he economy.
This appa en anomaly can be explained by he demand-d i en na u e o s uc u al change
in A ica, which was ueled by ac o s such as ex e nal inancial ans e s o inc eases in
ag icul u al incomes (Diao e al.,2019).
This a icle explo es he dynamics o s uc u al change in A ica h ough ou key
dimensions: echnology, alen , ou ism, and economic ans o ma ion. I iden i ies pa e ns
o economic de elopmen and ca ego izes 54 A ican coun ies in o clus e s based on
hei sou ces o s uc u al ans o ma ion. The s udy employs seconda y da a om he
Wo ld Bank, using ac o analysis o unco e la en dimensions o s uc u al change and
clus e analysis o g oup coun ies in o ypologies e lec ing hei de elopmen al s ages
and challenges. This me hodological app oach p o ides a comp ehensi e amewo k o
unde s anding he in e play be ween c i ical sec o s and o e s ac ionable insigh s o
policy de elopmen .
The a icle is s uc u ed as ollows: he nex sec ion e iews he ele an li e a u e,
highligh ing key concep s and deba es a ound s uc u al change. The Me hodology sec ion
de ails he da a sou ces, a iables, and analy ical echniques. This is ollowed by he
Resul s and Discussion sec ions, which p esen he indings and hei implica ions. Finally,
he Conclusion summa izes key insigh s, policy ecommenda ions, and di ec ions o
u u e esea ch.
2. Founda ions o S uc u al T ans o ma ion
2.1. The Role o S uc u al Change in Economic De elopmen
S uc u al change is a de ining p ocess in economic de elopmen , enabling economies
o ansi ion om low-p oduc i i y sec o s, such as ag icul u e, o highe -p oduc i i y sec o s
including knowledge in ensi e business se ices o echnology-d i en indus ies (Lopes &
Ka a ach,2019). I is a hallma k o mode n economic g ow h and an indica o o an economy’s
abili y o adap o changing global demands and condi ions (Kuzne s,1959). Cen al o his
p ocess is he ealloca ion o labo , capi al, and esou ces, which con ibu es o enhanced
p oduc i i y, di e si ied economic bases, and long- e m esilience (Ma hess & Kunkel,2020).
A ica’s economic landscape highligh s he impo ance o s uc u al ans o ma ion.
Fo decades, many A ican economies ha e depended hea ily on ag icul u e, a sec o
ma ked by low p oduc i i y and ulne abili y o clima e shocks. While he sec o s ill
employs a signi ican po ion o he labo o ce, i s con ibu ion o g oss domes ic p oduc
(GDP) has declined, unde sco ing he need o di e si ica ion (Islam & I e sen,2018).
U baniza ion and globaliza ion ha e u he emphasized he u gency o ans o ma ion, as
demog aphic p essu es and in e na ional compe i ion demand inno a i e and inclusi e
g ow h s a egies.
Theo e ical models, such as he classical dual-sec o model (Lewis,1954), ha e p o-
ided aluable insigh s in o he p ocess o s uc u al change. The model depic s he
mig a ion o su plus labo om adi ional ag icul u al sec o s o mode n indus ial ones,
wi h capi al accumula ion in u ban a eas d i ing g ow h (Leeson,1979). Howe e , A ica’s
con ex complica es his na a i e. Unlike indus ializing economies o he 20 h cen u y,
Economies 2025,13, 21 3 o 22
A ican coun ies o en con end wi h unde de eloped in as uc u e, in o mal economies,
and limi ed access o global ma ke s, inhibi ing seamless labo mobili y and capi al o ma-
ion (Minami & Ma,2014).
A ica also aces unique s uc u al challenges, such as he coexis ence o adi ional and
mode n economies. In o mal employmen , which domina es u ban a eas, limi s he impac o
s uc u al change on income s abili y and o mal job c ea ion. Addi ionally, indus ializa ion
has been slow, wi h unde in es men in manu ac u ing and o he high-p oduc i i y sec o s
hinde ing economic di e si ica ion (Gollin,2014). To add ess hese gaps, policies ha suppo
small- and medium-sized en e p ises, incen i ize o maliza ion, and s eng hen in as uc u e
may play a c ucial ole in acili a ing s uc u al ans o ma ion.
Commodi y dependence compounds hese challenges, as many A ican economies
ely on expo ing aw ma e ials subjec o ola ile global p ices. This dependence lea es
hem ulne able o ex e nal shocks and es ic s in es men s in highe - alue sec o s. Di-
e si ica ion s a egies—p omo ing alue-added p oduc ion, le e aging egional ade
ag eemen s like he A ican Con inen al F ee T ade A ea (A CFTA), and in eg a ing echnol-
ogy in o adi ional indus ies—a e essen ial o educing his dependence and enhancing
economic esilience (McMillan e al.,2016).
Ano he challenge is he abundance o na u al esou ces, which can lead o he esou ce
cu se phenomenon, weakening ins i u ions and hinde ing he indus ializa ion o some
A ican economies (see G abowski & Sel ,2024;Malah Kue e & Asongu,2023). This
phenomenon o en di e s capi al away om manu ac u ing and c ea es ad e se poli ical
e ec s, such as using income om na u al esou ce expo s o con ol he poli ical p ocess
and paying less a en ion o popula ion needs due o educed eliance on ax e enues.
(G abowski & Sel ,2024). Thus, dependence on mine als and o he aw ma e ials ends
o unde mine s uc u al change, highligh ing he need o s a egic di e si ica ion o he
economy (Ssozi & Bbaale,2019).
An addi ional aspec o s uc u al change in A ica ela es o access o he sea. In addi ion
o he po en ial o he de elopmen o ma i ime ac i i ies (including ou ism), access o he
sea acili a es ade openness, which in u n p omo es he exchange o knowledge, as well as
o he esou ces and p oduc s (see G abowski & Sel ,2024;Chabi & Saygılı,2024). In his espec ,
he oppo uni ies o landlocked economies a e mo e limi ed, which is o pa icula conce n
o some coun ies in sub-Saha an A ica (SSA). In addi ion o he limi a ions o ope a ing in
he ma i ime sec o , when a landlocked economy bo de s coun ies wi h weak ins i u ions,
in e na ional in es men ends o be educed (Ssozi & Bbaale,2019).
S uc u al change allows A ican economies o achie e inclusi e g ow h and sus ain-
able de elopmen . Howe e , success depends on add essing sys emic ba ie s, os e ing
enabling en i onmen s, and implemen ing comp ehensi e policies a ge ing educa ion,
go e nance, and echnology (see Adjei e al.,2024;Malah Kue e & Asongu,2023). These
e o s mus ensu e ha he bene i s o ans o ma ion each all popula ions and egions,
educing inequali ies while enhancing economic compe i i eness (S igli z,2018).
Coun ies can be classi ied in di e en s ages o s uc u al ans o ma ion: unde de-
eloped, de eloping, and de eloped (Sen,2023). In his p oposal, mos A ican economies
all in o he unde de eloped ca ego y, whe e ag icul u e domina es employmen , accoun -
ing o 40–60% as o 2018. Employmen g ow h in hese economies is concen a ed in
non-business se ices a he han business se ices, di e ging om pa e ns seen in mo e
ad anced s ages. Addi ionally, he da a showing an appa en posi i e ela ionship be ween
ade and manu ac u ing employmen in his g oup challenges Rod ik’s (2016) a gumen
o a p ema u e deindus ializa ion, he no ion ha globaliza ion has con ibu ed o limi ed
indus ializa ion and o en deindus ializa ion in low-income coun ies.
Economies 2025,13, 21 4 o 22
A ica mus ansi ion o an in e nally d i en de elopmen app oach, mo ing away om
ex e nally imposed s a egies ha ha e o en ailed o ans o m he con inen due o hei lack
o con ex ual ele ance. E ec i e A ican de elopmen s a egies mus p io i ize s uc u al
ans o ma ion, wi h indus ializa ion a hei co e. These s a egies should also in eg a e
c i ical conside a ions such as he Sus ainable De elopmen Goals (SDGs), clima e change,
ad ancemen s in key enabling echnologies, and he complexi ies o mig a ion, ensu ing a
comp ehensi e and o wa d- hinking amewo k o p og ess (Lopes & Ka a ach,2019).
2.2. Technology as a Ca alys o Change
Among hese d i e s o ans o ma ion, echnology has eme ged as a po en enable .
Wi h i s po en ial o os e inno a ion, imp o e e iciency, and eshape indus ies, echnology
can ca alyze sys emic challenges, and p oduc i i y gains ac oss he di e en sec o s. In
A ica, echnological ad ancemen s ha e eshaped indus ies such as ag icul u e, inance,
heal hca e, and manu ac u ing. The ise o mobile banking pla o ms like M-Pesa in Kenya
illus a es echnology’s po en ial o enhance inancial inclusion, pa icula ly in unde se ed
u al a eas (Benne & Benne ,2003). Simila ly, inno a ions in ag icul u e, such as mobile
ad iso y se ices and p ecision a ming, ha e empowe ed smallholde a me s o inc ease
yields and adap o clima e a iabili y (Roz ocki e al.,2019). Amoako e al. (2022) highligh
ha echnology’s impac on sec o s like ag icul u e hinges on ailo ed app oaches, such as
ene gy-e icien p oduc ion s a egies, ha add ess local he e ogenei y and ensu e equi able
ou comes.
The Technological Di usion Theo y (Roge s,1962) p o ides a amewo k o unde -
s anding how inno a ions sp ead h ough social sys ems. In A ica, echnology di usion
is in luenced by in as uc u e quali y, ins i u ional capaci y, and educa ional a ainmen .
Coun ies like Rwanda, p io i izing digi al in as uc u e and e-go e nance, ha e seen
signi ican gains in echnology adop ion, while o he s need o ca ch up due o egula o y
ba ie s and insu icien in es men (Vi a elli,2021). Fu he mo e, Vi a elli (2021) unde -
sco es he in e linkage be ween echnological p og ess, s uc u al change, and globaliza ion,
no ing ha ad ancemen s o en depend on in e na ional echnology ans e and local
capabili y building. These ac o s enable eme ging economies o ca ch up and achie e
sus ainable p oduc i i y g ow h.
Despi e i s ans o ma i e po en ial, echnology adop ion in A ica is o en une en.
Access o digi al ools and pla o ms emains limi ed in u al a eas, whe e in as uc u al
de ici s and a o dabili y issues pe sis . Addi ionally, he in oduc ion o au oma ion and
a i icial in elligence p esen s a pa adox. While hese echnologies enhance p oduc i i y
and compe i i eness in global ma ke s, hey h ea en jobs in adi ional sec o s, pa icula ly
in ag icul u e and manu ac u ing (c . G abowski & Sel ,2024). This is no new as i
ep esen s only an upda ed exp ession o he Kuzne s pa adox (Kuzne s,1955).
This unde sco es he u gen need o e aining and upskilling p og ams o p epa e
he wo k o ce o he digi al economy’s demands. Mensah e al. (2023) highligh how
shi s away om ag icul u e ha e seen he se ice sec o abso b much o he wo k o ce.
Howe e , his has only some imes esul ed in o e all p oduc i i y gains, e lec ing he
need o echnology-d i en s a egies ha maximize e iciency ac oss sec o s.
The mul i ace ed ole o echnology in s uc u al ans o ma ion ex ends beyond adi-
ional sec o s. I os e s he de elopmen o en i ely new indus ies and business models,
such as e-comme ce, elemedicine, and enewable ene gy, which ha e he po en ial o
d i e economic di e si ica ion and esilience. Fo example, Ei e e al. (2008) documen
Nige ia’s echnology indus y’s apid g ow h, including signi ican co po a ions d i ing
inno a ion in heal hca e, ag icul u e, and inance, alongside smalle en e p ises ans o m-
ing e ail and e-comme ce. Howe e , challenges like un eliable elec ici y and limi ed

Economies 2025,13, 21 5 o 22
unding, pa icula ly o women, highligh he need o inclusi e and suppo i e business
en i onmen s. Meanwhile, enewable ene gy echnologies add ess ch onic ene gy de ici s
while con ibu ing o sus ainabili y goals. Telemedicine pla o ms a e expanding access
o heal hca e se ices in emo e a eas, exempli ying how echnology can b idge social
and economic in as uc u e gaps. As A ican economies in eg a e echnology in o hei
de elopmen s a egies, ensu ing equi able access and inclusi e bene i s will be c i ical o
long- e m success.
Howe e , echnology alone can only d i e s uc u al ans o ma ion wi h skilled
human capi al o sus ain and expand i s impac (Fab ice e al.,2024). The ole o educa ion,
skills acquisi ion, and wo k o ce in eg a ion becomes pi o al in aligning human esou ces
wi h echnological ad ancemen s.
2.3. Talen De elopmen as a Pilla o T ans o ma ion
Human capi al is a co ne s one o economic g ow h and s uc u al ans o ma ion.
In A ica, he bu geoning you h popula ion p esen s a demog aphic di idend ha , i ha -
nessed e ec i ely, could d i e inno a ion, p oduc i i y, and esilience. Talen de elopmen ,
encompassing educa ion, skills acquisi ion, and wo k o ce in eg a ion, is essen ial o
aligning human capi al wi h he demands o a apidly changing economy (La oche e al.,
1999). E ec i e human capi al s a egies ha e been ecognized as c i ical o b idging he
gap be ween adi ional and mode n economies, allowing A ican na ions o maximize
hei economic po en ial.
Educa ion sys ems ac oss A ica ace signi ican challenges, including inadequa e
in as uc u e, ou da ed cu icula, and limi ed access o quali y educa ion in u al a eas.
These gaps hinde he de elopmen o a skilled wo k o ce capable o mee ing he demands
o indus ies such as echnology, manu ac u ing, and se ices. As Mensah (2020) no es,
oca ional aining and echnical educa ion ha e eme ged as c i ical in e en ions o
add essing hese issues. Technical and Voca ional Educa ion and T aining (TVET) p og ams
in coun ies like Sou h A ica and Kenya ha e success ully equipped young people wi h
p ac ical skills, os e ing en ep eneu ship and educing you h unemploymen . These
p og ams ha e also been ins umen al in aligning educa ion wi h he speci ic needs o local
indus ies, c ea ing a mo e seamless ansi ion be ween educa ion and employmen .
Howe e , sys emic ba ie s such as insu icien unding, lack o indus y collabo a ion,
and cul u al s igmas a ound oca ional educa ion pe sis . Add essing hese ba ie s
equi es conce ed e o s om go e nmen s, p i a e sec o ac o s, and ci il socie y. Public–
p i a e pa ne ships can help mobilize esou ces o cu iculum e o m, eache aining
and in as uc u e de elopmen . Addi ionally, cul u al awa eness campaigns can help
p omo e oca ional aining by posi ioning i as a pa hway o economic oppo uni y.
The global shi owa d knowledge-based economies unde sco es he impo ance
o digi al li e acy and STEM (science, echnology, enginee ing, and ma hema ics) educa-
ion. P og ams ha p omo e li elong lea ning and ad anced echnical skills can p epa e
A ica’s wo k o ce o he Fou h Indus ial Re olu ion. Fo example, ini ia i es in Rwanda
ha e success ully in eg a ed STEM- ocused educa ion a he seconda y le el, os e ing a
gene a ion o echnologically adep wo ke s capable o mee ing he demands o eme g-
ing indus ies (Vi a elli,2021). Mo eo e , p omo ing en ep eneu ial skills alongside
digi al compe encies can empowe indi iduals o c ea e inno a i e solu ions ailo ed o
local challenges.
In addi ion o s eng hening domes ic educa ion sys ems, A ican coun ies mus
add ess he issue o b ain d ain. The loss o skilled p o essionals o o he egions weakens
he local alen pool, exace ba ing labo sho ages in c i ical sec o s. Ini ia i es o e e se
b ain d ain and encou age diaspo a engagemen ha e p o en e ec i e in enhancing he
Economies 2025,13, 21 6 o 22
egion’s human capi al base. P og ams like E hiopia’s Diaspo a In es men Ini ia i e ha e
shown ha a ge ed policies can a ac skilled p o essionals back o he con inen , os e ing
inno a ion and compe i i eness (Mensah,2020). Fu he mo e, diaspo a communi ies
can se e as aluable b idges o knowledge ans e and in e na ional collabo a ion,
accele a ing local de elopmen .
Talen de elopmen in A ica is abou p epa ing he wo k o ce o exis ing oppo u-
ni ies and c ea ing an adap able, inno a i e, and inclusi e labo o ce capable o d i ing
u u e economic ans o ma ion. By in es ing in educa ion, os e ing indus y collabo-
a ion, and emb acing global bes p ac ices, A ican na ions can posi ion hei human
capi al as a c i ical d i e o s uc u al change. The nex sec ion examines how key sec o s,
including ou ism, can ca alyze his ans o ma ion by c ea ing employmen oppo uni ies
and os e ing economic esilience.
2.4. Sec o al T ans o ma ions in Tou ism and O he Key Indus ies
S uc u al ans o ma ion in A ica is deeply connec ed o he de elopmen o key
sec o s such as ou ism, manu ac u ing, and se ices. These sec o s no only d i e economic
g ow h bu also gene a e syne gies ha magni y he ans o ma ion ac oss he b oade
economy. Thei in e dependence highligh s he in e connec ed na u e o A ica’s p og ess
and he need o an in eg a ed app oach o sus ainable de elopmen .
Tou ism, in pa icula , has eme ged as a c ucial ca alys o economic di e si ica ion
and esilience. A ica’s ich na u al and cul u al he i age o ms he ounda ion o ou ism-
led de elopmen , c ea ing oppo uni ies o job gene a ion, in as uc u e imp o emen ,
o eign exchange ea nings, and cul u al p ese a ion. Sus ainable ou ism ini ia i es ha e also
emphasized en i onmen al conse a ion and local communi y in ol emen (Hensele e al.,
2022). Technological ad ancemen s, such as online booking pla o ms, i ual eali y ou s,
and mobile a el applica ions, ha e u he expanded ou ism’s each, in eg a ing adi ional
economic ac i i ies in o mode n alue chains. As a co ne s one o s uc u al ans o ma ion,
ou ism can b idge he gap be ween local economies and global ma ke s. Ma siglio’s (2018)
s udy on ou ism specializa ion ein o ces his po en ial, showing ha s a egic in e en ions
can spu economic eju ena ion and a ac inc eased ou is ac i i y, hough challenges like
s agna ion o decline mus be managed ca e ully.
Despi e i s ans o ma i e po en ial, ou ism aces pe sis en ba ie s in A ica, including
insu icien in as uc u e, poli ical ins abili y, and en i onmen al conce ns (Nyasha e al.,
2021). D awing om Zuo and Huang’s (2020) analysis o ou ism in China, ou ism- ela ed
indus ializa ion os e s p oduc i i y and in eg a ion wi h o he sec o s. Applying such
s a egies in A ica necessi a es policies ha enhance egional connec i i y, p io i ize sa e y,
and p omo e communi y engagemen o ully unlock he sec o ’s po en ial while mi iga ing
i s challenges.
Ne e heless, ou ism’s g ow h can esul in ad e se consequences. Issues such as
in la ed local p ices, gen i ica ion, commodi ica ion o cul u al alues, inc eased c ime,
o e c owding, and en i onmen al deg ada ion unde sco e he need o add ess ou ism’s
nega i e ex e nali ies. I emains essen ial, howe e , o ecognize i s ole in educing
social inequali ies, d i ing economic de elopmen , and enhancing he quali y o li e o
local communi ies (Alcalá-O dóñez & Sega a,2023). Recommenda ions o he sec o
include imp o ing isa p ocesses o acili a e in e na ional a el, ex ending c edi and
consul ancy suppo o small businesses, and le e aging ICT o enhance compe i i eness
( an de Schy e al.,2019;Ssozi & Bbaale,2019). Fu he mo e, O o i e al. (2022) demon-
s a ed ha ou ism’s po en ial o educe income inequali y is signi ican ly ampli ied by
good go e nance.
Economies 2025,13, 21 7 o 22
Beyond ou ism, he manu ac u ing sec o is a c i ical d i e o indus ializa ion
and economic di e si ica ion. Ini ia i es like he A ican Con inen al F ee T ade A ea
(A CFTA) aim o inc ease in a-A ican ade and a ac in es men s in alue-added
p oduc ion (Page,2016). Eme ging indus ies such as ex iles, au omo i e, and ood
p ocessing illus a e manu ac u ing’s capaci y o gene a e employmen and s imula e
inno a ion. While p ema u e deindus ializa ion is no a pe asi e issue in mos sub-
Saha an A ican economies (Nguimkeu & Zeu ack,2024), he sec o g apples wi h high
p oduc ion cos s, un eliable ene gy supplies, and egula o y ine iciencies, which mus be
o e come o ealize i s ans o ma i e po en ial.
The se ices sec o , pa icula ly elecommunica ions and inance, has also eme ged as
a powe ul g ow h engine. D i en by mobile echnology and digi al pla o ms, inno a ions
like mobile banking, e-comme ce, and in ech ha e e olu ionized inancial inclusion,
b oadening access o c edi and ma ke s in emo e a eas (Min sa & Ndong ack,2017).
Such ad ancemen s c ea e ipple e ec s ac oss sec o s, os e ing p og ess in ag icul u e,
educa ion, and heal hca e.
In conclusion, A ica’s s uc u al ans o ma ion elies on he in e play o hese sec o s,
each ampli ying oppo uni ies in o he s. By in eg a ing ou ism, manu ac u ing, and
se ices, A ican economies can align adi ional p ac ices wi h mode n sys ems, d i ing
inclusi e g ow h. S a egic policies, egional coope a ion, and inno a ion adop ion will be
key o unlocking hei collec i e po en ial o sus ainable de elopmen .
3. Me hodology
As explo ed in he li e a u e, s uc u al ans o ma ion is a mul i ace ed p ocess
shaped by he in e play o echnology, sec o al changes, alen , and eme ging indus ies like
ou ism. Unde s anding his p ocess equi es a me hodological amewo k ha cap u es
hese dimensions’ complexi y and in e connec edness, pa icula ly in A ica’s unique
challenges and oppo uni ies.
This sec ion ou lines he esea ch plan, da a collec ion p ocesses, and analy ical ech-
niques employed o in es iga e he dynamics o A ican s uc u al change. By ocusing on
quan i a i e analysis and le e aging seconda y da a, he s udy comp ehensi ely explo es
he oles played by echnology, ans o ma ion, alen , and ou ism in shaping A ica’s eco-
nomic landscape. This s udy employed a quan i a i e esea ch app oach o align wi h he
esea ch objec i es and he need o s a is ical analysis. Quan i a i e me hods acili a ed he
iden i ica ion o ela ionships be ween a iables, enabling an examina ion o co ela ions
and causali y (Saunde s e al.,2019). This app oach allowed o collec ing a la ge olume
o seconda y da a om epu able sou ces, such as he Wo ld Bank, ensu ing c edibili y and
eliabili y. The quan i a i e me hodology also helped a oid bias by ocusing on alida ed
da ase s (Ko ha i,2008), making i pa icula ly sui ed o explo ing he mul idimensional
aspec s o A ican s uc u al ans o ma ion.
This pape adop ed a c oss-sec ional esea ch design, collec ing da a simul aneously o
p o ide a snapsho o he cu en dynamics o s uc u al change ac oss 54 A ican coun ies.
C oss-sec ional designs allow o he compa ison o g oups and he examina ion o how
a iables a e ela ed o each o he a a pa icula poin in ime (C eswell,2019). Di e se
ac o s, such as echnological p og ess, sec o al changes, alen de elopmen , and ou ism
g ow h, d i e A ica’s s uc u al ans o ma ion. Howe e , he lack o comp ehensi e,
mul idimensional analysis in he exis ing li e a u e mo i a ed he s udy’s design. This
esea ch add esses he ollowing key ques ions: How does echnology d i e s uc u al
changes in A ica’s economies and socie ies? Wha ans o ma ional ends a e obse ed
in ou ism, ag icul u e, manu ac u ing, and se ices, and how do hey in luence A ica’s
economic landscape? How a e alen de elopmen and u iliza ion add essed in e ms o
Economies 2025,13, 21 8 o 22
educa ion, skill enhancemen , and wo k o ce in eg a ion? Wha is he g ow h po en ial o
he ou ism indus y in A ica, and how does i con ibu e o s uc u al change?
This s udy u ilized seconda y da a sou ced om he Wo ld Bank da abase, o e ing
a eliable ounda ion o examining indica o s ela ed o echnological ad ancemen , eco-
nomic ans o ma ion, alen de elopmen , and ou ism ends. Seconda y da a ensu ed
ha he analysis adhe ed o igo ous s anda ds o eliabili y and alidi y while minimizing
unce ain ies (Mohajan,2017). The s udy de eloped a composi e indica o o cap u e
he mul idimensional na u e o s uc u al ans o ma ion, in eg a ing a iables ac oss he
ou co e dimensions: echnology, ans o ma ion, alen , and ou ism. Ca e ul weigh ing
and selec ing hese indica o s p o ided a nuanced unde s anding o he socioeconomic
dynamics shaping A ica’s s uc u al ans o ma ion.
The analysis included se e al s eps and ools. Fac o analysis was used o iden i y
unde lying s uc u es wi hin he da ase , wi h he Kaise –Meye –Olkin (KMO) measu e
and Ba le ’s es o sphe ici y ensu ing sui abili y o he analysis. P incipal Componen
Analysis (PCA) was employed o explain o al a iance in he da a, ocusing on ela ion-
ships among a iables. Desc ip i e s a is ics p o ided an o e iew o da a dis ibu ion
and a iabili y, o e ing ini ial insigh s in o s uc u al ans o ma ion dynamics. Clus e
analysis g ouped A ican economies in o clus e s based on simila pa e ns o s uc u al
change, e ealing egional ends and dynamics. Clus e map isualiza ion u he il-
lus a ed he geog aphical dis ibu ion o hese clus e s, aiding in he in e p e a ion o
egional dispa i ies.
We pe o med a hie a chical clus e analysis using Euclidean dis ance, g ouping cases
based on hei p oximi y (see Hai e al.,2018). Wa d’s linkage me hod was applied o
de e mine he op imal numbe o clus e s, minimizing wi hin-clus e a iance du ing he
hie a chical clus e ing p ocess (Malho a,2006). The esul ing dend og am (Appendix C)
was ins umen al in iden i ying he app op ia e numbe o clus e s, p o iding a isual
ep esen a ion o he hie a chical ela ionships among coun ies. By obse ing he heigh o
he e ical lines in he dend og am, which e lec he dissimila i y le els be ween g oups,
six clus e s we e iden i ied, each ep esen ing a unique de elopmen ajec o y.
The geog aphic scope included all 54 A ican coun ies chosen o hei di e se eco-
nomic, cul u al, and de elopmen al con ex s. A ica’s apid u baniza ion, demog aphic
shi s, and echnological ad ancemen s make i a c i ical case o analyzing s uc u al
change. The esea ch add essed gaps in global s udies, which o en o e look A ican
con ex s, by o e ing a comp ehensi e and inclusi e pe spec i e on he con inen ’s ans o -
ma ion. By le e aging seconda y da a and ad anced s a is ical echniques, he s udy aimed
o p o ide ac ionable insigh s in o how echnology, ans o ma ion, alen , and ou ism
in e ac o shape A ica’s s uc u al change.
E hical s anda ds we e upheld h oughou he s udy. Using seconda y da a om
epu able sou ces ensu ed compliance wi h es ablished e hical p inciples. All da a sou ces
we e app op ia ely acknowledged, and ca e was aken o e i y he da ase ’s in eg i y.
Reliabili y was ensu ed by p io i izing da a om acc edi ed sou ces, while alidi y was
es ablished h ough igo ous me hodological design and obus da a analysis. These
measu es ensu ed he indings we e c edible and ac ionable, con ibu ing o he b oade
unde s anding o A ica’s economic ans o ma ion.
4. Resul s
4.1. Economic Landscape and De elopmen Challenges in A ica
A ican economies p esen a highly he e ogeneous landscape, encompassing a b oad
spec um o income le els, om low-income o uppe -middle and high-income na ions.
SSA, in pa icula , is a egion ma ked by s a k con as s, wi h 22 coun ies iden i ied as
Economies 2025,13, 21 15 o 22
s uc u al ans o ma ion in A ican economies, emphasizing he ole o echnology, key
sec o al ans o ma ions, alen de elopmen , and he po en ial o he ou ism indus y.
The ole o echnology eme ges as a ca alys o s uc u al ans o ma ion, as e lec ed
in he e ained componen s ha highligh a iables like access o elec ici y, b oadband
subsc ip ions, and medium- and high- ech indus ies. These indica o s sugges ha ech-
nological in as uc u e and digi al capaci y a e enable s o economic di e si ica ion and
c i ical o add essing socioeconomic inequali ies. Coun ies wi h obus echnological
bases end o exhibi mo e subs an ial g ow h and de elopmen ajec o ies, e lec ing he
po en ial o echnology o b idge de elopmen gaps. The posi i e impac s o de eloped
echnological in as uc u e a e expec ed o bo h manu ac u ing and he se ices sec o
(Malah Kue e & Asongu,2023;O o i e al.,2022). Acco dingly, limi ed in as uc u e
de elopmen is seen as a de e minan o he slow pace o s uc u al change in some SSA
economies (G abowski & Sel ,2024).
In addi ion, he indings o he p esen pape also unde sco e A ica’s pe sis en
digi al di ide, a ba ie o b oade economic pa icipa ion. Bho a e al. (2023) demon-
s a e ha A ica lags signi ican ly behind G20 economies in digi al public pa icipa ion,
digi al inance, and en ep eneu ship despi e some p og ess in educing ela i e digi al
ulne abili y. This sugges s a need o nuanced policy in e en ions beyond in as uc u e
de elopmen , including capaci y building, digi al li e acy, and inclusi e access o echno-
logical esou ces unde lining he link be ween he echnology and alen dimensions. This
app oach could educe he isk o digi al exclusion, wi h he aim o b inging he bene i s
o echnological ad ances o ma ginalized popula ions and con ibu ing o sus ainable
de elopmen . The e o e, ou pape also highligh s he need o conside o he s uc u al
condi ions alongside in as uc u e, especially in A ican economies in ansi ion and in
low- and middle-pe o ming A ican economies.
Sec o al ans o ma ions e eal a complex in e play o his o ical legacies, geog aphic
dispa i ies, and policy challenges. While ag icul u e emains he backbone o many sub-
Saha an A ican economies, i s p oduc i i y has s agna ed, con ibu ing o a slowe s uc-
u al shi owa d indus ializa ion. As he In e na ional Labou O ganiza ion (2021) poin s
ou , he se ices sec o has abso bed much o he labo o ce exi ing ag icul u e, bu his
shi has ye o ansla e in o commensu a e p oduc i i y gains. The indings sugges
ha sec o s such as manu ac u ing and ade equi e a ge ed suppo o enhance hei
compe i i eness and p oduc i i y. Fo example, Mensah e al. (2023) highligh ha he
indus ial sec o in A ica needs o be u ilized despi e i s po en ial o d i e high- alue-
added p oduc ion. In es men s in in as uc u e, coupled wi h policies o a ac o eign
di ec in es men and suppo small- and medium-sized en e p ises, could enable A ican
economies o ha ness indus ial g ow h as a pa hway o di e si ica ion and esilience. Fu -
he mo e, u baniza ion p esen s bo h an oppo uni y and a challenge, as apid popula ion
g ow h in u ban a eas necessi a es coo dina ed e o s in housing, anspo a ion, and
indus ial planning o a oid exace ba ing inequali ies.
Talen de elopmen is ano he dimension o s uc u al ans o ma ion. This s udy
highligh s he impo ance o educa ion, go e nance, and wo k o ce in eg a ion in os e ing
a skilled and inno a i e labo o ce. These indings align wi h e idence om he Wo ld
Bank (2023), which unde sco es he gap be ween A ica’s demog aphic di idend and job
c ea ion capabili ies. Wi h millions o young people en e ing he labo ma ke annually,
ailing o c ea e su icien o mal wage jobs isks pe pe ua ing cycles o po e y and
inequali y. I is no simply a ma e o encou aging alen de elopmen by inc easing he
numbe o uni e si y deg ees, as he con inen is cha ac e ized by g adua es wi h limi ed
op ions who end up wo king in p eca ious jobs (O o i e al.,2022).

Economies 2025,13, 21 16 o 22
Add essing his challenge equi es a mul i-p onged s a egy ha includes e o ming
educa ional sys ems o align wi h labo ma ke needs, s eng hening go e nance o educe
b ain d ain, and os e ing en ep eneu ship as an al e na i e o o mal employmen . Fo
ins ance, Chabi and Saygılı (2024) sugges ed ha Wes A ican economies align alen
de elopmen wi h cu en ends, such as ICT se ices. In line wi h ou esul s, his
ecommenda ion highligh s he in e connec ion be ween he dimensions o alen and
echnology. Addi ionally, ou indings sugges ha go e nance s uc u es play a signi ican
ole in shaping he e icacy o alen u iliza ion. Coun ies wi h highe CPIA sco es o social
inclusion and public sec o managemen end o exhibi be e ou comes in human capi al
de elopmen , ein o cing he need o ins i u ional e o ms o c ea e enabling en i onmen s
o g ow h. These esul s align wi h he s udy by Adjei e al. (2024), which iden i ied
go e nance as a key ac o o he economic g ow h o SSA economies. Tou ism eme ges as
a ans o ma i e sec o wi h he po en ial o d i e economic di e si ica ion and communi y
de elopmen The indings demons a e ha coun ies wi h s ong ou ism indica o s,
such as Kenya and Tanzania, ha e success ully le e aged na u al and cul u al asse s o
gene a e signi ican economic bene i s. Wildli e ou ism, in pa icula , plays a pi o al
ole, con ibu ing billions o dolla s o GDP and suppo ing local economies. Howe e ,
he sus ainabili y o ou ism is h ea ened by en i onmen al deg ada ion, inadequa e
in as uc u e, and unequal dis ibu ion o bene i s. Bacsi e al. (2023) no e ha ou ism
con ibu es subs an ially o GDP bu o en ails o c ea e equi able oppo uni ies o local
popula ions. Add essing hese challenges equi es a pa adigm shi owa d sus ainable
ou ism models p io i izing communi y pa icipa ion, en i onmen al conse a ion, and
equi able bene i -sha ing mechanisms.
Fu he mo e, ou esul s sugges ha ou ism as a d i e o s uc u al change should no
be analyzed in isola ion. This pape links his sec o o he dynamism and economic g ow h
o A ican economies, suppo ing o he empi ical s udies (see Alcalá-O dóñez & Sega a,
2023). A he same ime, he e is some e idence ha ou ism is also in luenced by economic
de elopmen (Alcalá-O dóñez e al.,2024) and le els o go e nance (O o i e al.,2022). This
shows ha ou ism is in e linked wi h he o he h ee dimensions, as i equi es digi aliza ion,
a skilled wo k o ce, and policies aimed a s uc u al change based on sus ainabili y. As such,
by in eg a ing ou ism in o b oade de elopmen s a egies, A ican coun ies a e expec ed o
enhance hei con ibu ions o s uc u al ans o ma ion while p ese ing he cul u al and
na u al he i age ha unde pins hei success. These indings highligh he in e connec edness
o he dimensions explo ed in his s udy. In eg a ing echnology in o ag icul u e could
enhance p oduc i i y and d i e mo e e icien esou ce use. A he same ime, u baniza ion
pai ed wi h hough ul indus ial planning has he po en ial o c ea e syne gies be ween
demog aphic g ow h and job c ea ion. Simila ly, aligning ou ism s a egies wi h go e nance
e o ms and alen de elopmen could imp o e ou ism’s po en ial as a d i e o inclusi e
economic g ow h. The mul idimensional na u e o s uc u al ans o ma ion unde sco es
he need o conside he in e dependencies among sec o s, go e nance sys ems, and human
capi al in any de elopmen ini ia i e.
O he poin s o discussion in ol e access o esou ces. Some empi ical s udies ha e
emphasized ha he esou ce cu se unde mines s uc u al change in A ica (e.g., G abowski
& Sel ,2024;Malah Kue e & Asongu,2023). Malah Kue e and Asongu (2023) es ed
his hypo hesis by looking a o al na u al esou ces as a pe cen age o GDP in 2021.
Using he ypology o ou pape , he en A ican economies wi h he highes pe cen ages
o his a iable can be classi ied as A ican de eloping economies (e.g., Libya, Congo,
Rep., Angola), A ican ansi ion economies (e.g., Congo, Dem. Rep.) and A ican low-
middle pe o ming economies (e.g., Zambia). These indings aise conce ns abou he
g ow h o weal h dis ibu ion pe capi a and he limi ed dynamism o hese coun ies.
Economies 2025,13, 21 17 o 22
In addi ion, he capaci y o he public sec o emains a key issue o de eloping A ican
economies and especially o low–middle pe o ming ones. These challenges a e o en
mo e p onounced in landlocked economies, which a e p edominan ly concen a ed in he
low–middle-pe o ming economies clus e .
Policy implica ions de i ed om he indings emphasize he ele ance o holis ic and
in eg a ed app oaches o de elopmen . Policymake s should conside s a egies ha bal-
ance immedia e economic g ow h wi h long- e m sus ainabili y, ensu ing ha in es men s
a e inclusi e and equi able. This includes expanding access o echnology in u al and
unde se ed a eas, whe e digi al and in as uc u al dispa i ies emain ba ie s o g ow h.
Addi ionally, he de elopmen o indus ial clus e s aligned wi h u ban planning can help
maximize syne gies be ween demog aphic expansion and job c ea ion. Fu he mo e, egu-
la o y amewo ks should also be es ablished o p omo e sus ainable ou ism, p o ec ing
na u al and cul u al he i age while dis ibu ing economic bene i s equi ably o local com-
muni ies. By sys ema ically add essing hese in e connec ed challenges, A ica can le e age
i s di e se s eng hs o ad ance a sus ainable, inclusi e, esilien de elopmen pa hway.
6. Conclusions
This s udy highligh s he mul i ace ed dynamics o s uc u al ans o ma ion in
A ican economies, emphasizing he con inen ’s po en ial and challenges. A ica’s
economies a e di e se, encompassing na ions a a ious s ages o de elopmen . While
some coun ies ha e achie ed no able p og ess in economic g ow h and di e si ica ion,
o he s emain cons ained by pe sis en obs acles such as poli ical ins abili y, economic
agili y, and limi ed access o c i ical se ices.
A key conclusion o he s udy is he cen ali y o echnology as a d i e o s uc-
u al change. Access o elec ici y, b oadband in as uc u e, and in es men in high- ech
indus ies we e iden i ied as pi o al in enabling economic ans o ma ion. Coun ies p io -
i izing hese a eas demons a e enhanced g ow h po en ial and a e expec ed o be mo e
esilien o ex e nal shocks, unde sco ing he impo ance o echnological eadiness in
mode n economies.
The indings also unde sco e he ans o ma i e ole o sec o s such as ou ism, ag i-
cul u e, manu ac u ing, and se ices. These sec o s a e essen ial o di e si ying economies,
c ea ing employmen oppo uni ies, and os e ing inno a ion. This s udy e eals ha
economic p og ess is mos p onounced in coun ies whe e hese sec o s a e well in eg a ed
wi h go e nance amewo ks and human capi al de elopmen .
Human capi al eme ged as ano he pilla o s uc u al ans o ma ion. Coun ies
in es ing in educa ion, skills de elopmen , and in eg a ion o labo ma ke s exhibi g ea e
economic dynamism and inno a ion. S ong go e nance s uc u es ha p omo e equi y and
social inclusion u he enhance he p oduc i i y and po en ial o he wo k o ce, making
human capi al de elopmen an indispensable componen o sus ainable g ow h.
Finally, he s udy sugges s a c i ical ole o ou ism in shaping A ica’s economic
ajec o y. Tou ism, especially in coun ies ich in na u al and cul u al he i age, has demon-
s a ed po en ial o d i e economic ans o ma ion. Sus ainable ou ism s a egies ha
le e age local esou ces while p o ec ing he en i onmen and cul u al asse s can be a
powe ul engine o inclusi e de elopmen .
S uc u al change se es as a signi ican ca alys o economic ans o ma ion and
dynamism, os e ing inno a ion, p oduc i i y, and g ow h. Howe e , his p ocess o en
en ails subs an ial dis up ion, as i may lead o he displacemen o s able employmen
and ad e sely impac es ablished indus ies and sec o s (Di Tommaso e al.,2025). Such
consequences can p o oke esis ance and an agonism among a ec ed s akeholde s, who
may s i e o p ese e he p e ailing s a us quo o sa egua d hei economic in e es s. This
Economies 2025,13, 21 18 o 22
ension unde sco es he dual na u e o s uc u al change: while i p opels p og ess and
adap a ion, i simul aneously gene a es discon en and esis ance, highligh ing he need
o ca e ully designed policies o balance p og ess wi h social and economic s abili y.
Fu u e esea ch should del e deepe in o he localized impac s o s uc u al ans-
o ma ion wi hin A ican economies. This includes explo ing he mic o-le el dynamics
o egional dispa i ies, sec o -speci ic challenges, and he ole o in o mal economies in
shaping de elopmen ajec o ies. Gi en A ica’s ulne abili y o en i onmen al shocks,
comp ehending clima e change’s impac s on economic esilience and sec o al p oduc i i y
is pa icula ly c i ical. Addi ionally, s udying he ole o egional in eg a ion ini ia i es,
such as he A CFTA, can p o ide insigh s in o os e ing c oss-bo de syne gies and eco-
nomic cohesion. Resea ch on he in e play be ween cul u al ac o s and economic decision-
making could u he en ich ou unde s anding o s uc u al ans o ma ion, enabling mo e
con ex ually g ounded policy in e en ions. These a enues o inqui y hold he po en ial
o deepen ou unde s anding o A ica’s de elopmen al landscape and in o m policy o
sus ainable and inclusi e g ow h.
Au ho Con ibu ions: H.P., concep ualiza ion, in es iga ion, o mal analysis, me hodology, so wa e,
w i ing— e iew and edi ing, and alida ion; E.O., in es iga ion, o mal analysis, me hodology, and
w i ing—o iginal d a ; L.F.C.V., concep ualiza ion, in es iga ion, w i ing— e iew and edi ing, and
alida ion; C.N., concep ualiza ion, w i ing— e iew and edi ing, and alida ion. All au ho s ha e
ead and ag eed o he published e sion o he manusc ip .
Funding: H.P. is suppo ed by he FCT—Po uguese Founda ion o Science and Technology
(UIDB/04020/2020 and CEEC—INST/00052/2021/CP2792/CT0001).
In o med Consen S a emen : No applicable.
Da a A ailabili y S a emen : The da a p esen ed in his s udy a e a ailable upon eques o he
email [email p o ec ed]. Access o he da a is subjec o he app o al o he co esponding au ho o
he a icle.
Con lic s o In e es : The au ho s decla e no con lic s o in e es .
Appendix A
Table A1. Desc ip i e s a is ics.
Mean S d. De ia ion Missing N
Access o elec ici y 56.822 26.822 0
CO2emissions 1.055 1.578 0
GDP pe capi a g ow h 1.724 3.496 2
GNI pe capi a, A las me hod 2557.885 2553.314 2
Indus y (including cons uc ion) 27.445 13.958 4
Fo eign di ec in es men 853,152,210.343 2,260,278,140.078 1
Ai anspo , egis e ed ca ie depa u es wo ldwide 18,834.922 24,550.567 17
Fixed b oadband subsc ip ions(pe 100 people) 3.302 6.063 11
CPIA economic managemen clus e a e age 3.146 0.617 14
CPIA policies o social inclusion/equi y clus e a e age 3.146 0.617 14
CPIA public sec o managemen and ins i u ions
clus e a e age 2.897 0.493 14
CPIA s uc u al policies 3.154 0.509 14
Logis ics pe o mance index: O e all (1 = low o 5 = high) 2.537 0.2653 24
Popula ion densi y 110.351 137.993 0
School en olmen , e ia y 15.914 9.153 27
% U ban popula ion 47.731 18.896 0
Tou ism in ensi y ( ou is by wo ke ) 0.355 0.7435 1
Tou ism expendi u e ( ou ism expendi u e/a i als) 713,589.338 1,334,622.040 11
Medium- and high- ech indus ies 13.348 7.993 20
No es: Fo each a iable, missing alues a e eplaced wi h a iable mean; CPIA = Coun y Policy and Ins i u ional
Assessmen ; GNI = G oss Na ional Income. Sou ce: Compu a ion o da a om he Wo ld Bank.
Economies 2025,13, 21 19 o 22
Appendix B
Table A2. Communali ies.
Va iables Ini ial Ex ac ion
Access o elec ici y 1.000 0.719
CO2emissions 1.000 0.878
GDP pe capi a g ow h 1.000 0.753
GNI pe capi a, A las me hod 1.000 0.852
Indus y (including cons uc ion) 1.000 0.646
Fo eign di ec in es men 1.000 0.692
Ai anspo , egis e ed ca ie depa u es wo ldwide 1.000 0.703
Fixed b oadband subsc ip ions (pe 100 people) 1.000 0.780
CPIA economic managemen clus e a e age 1.000 0.880
CPIA policies o social inclusion/equi y clus e a e age 1.000 0.880
CPIA public sec o managemen and ins i u ions clus e a e age 1.000 0.745
CPIA s uc u al policies 1.000 0.776
Logis ics pe o mance index: O e all (1 = low o 5 = high) 1.000 0.633
Popula ion densi y 1.000 0.729
School en olmen , e ia y 1.000 0.623
% U ban popula ion 1.000 0.699
Tou ism in ensi y ( ou is by wo ke ) 1.000 0.712
Tou ism expendi u e ( ou ism expendi u e/a i als) 1.000 0.735
Medium- and high- ech indus ies 1.000 0.422
No e: Ex ac ion Me hod: P incipal Componen Analysis. Sou ce: Compu a ion o da a om he Wo ld Bank.
Table A3. To al a iance explained.
Componen
Ini ial Eigen alues Ex ac ion Sums o Squa ed Loadings Ro a ion Sums o Squa ed Loadings
To al % o
Va iance
Cumula i e
%To al % o
Va iance
Cumula i e
%To al % o
Va iance
Cumula i e
%
1 4.654 24.496 24.496 4.654 24.496 24.496 3.814 20.076 20.076
2 3.523 18.542 43.038 3.523 18.542 43.038 3.369 17.730 37.807
3 2.474 13.020 56.058 2.474 13.020 56.058 3.128 16.465 54.271
4 1.968 10.357 66.415 1.968 10.357 66.415 1.915 10.079 64.351
5 1.238 6.515 72.930 1.238 6.515 72.930 1.630 8.580 72.930
6 0.904 4.758 77.688
7 0.712 3.748 81.437
8 0.691 3.636 85.072
9 0.552 2.905 87.977
10 0.498 2.622 90.599
11 0.427 2.247 92.845
12 0.383 2.015 94.861
13 0.305 1.604 96.465
14 0.232 1.219 97.684
15 0.167 0.877 98.560
16 0.136 0.718 99.278
17 0.090 0.475 99.754
18 0.047 0.246 100.000
19 −1.110 ×
10−16
−5.843 ×
10−16 100.000
No e: Ex ac ion Me hod: P incipal Componen Analysis. Sou ce: Compu a ion o da a om he Wo ld Bank.
Economies 2025,13, 21 20 o 22
Appendix C
Economies 2025, 13, x FOR PEER REVIEW 21 o 24
Appendix C
Figu e A1. Dend og am wi h Wa d’s linkage.
Figu e A1. Dend og am wi h Wa d’s linkage.
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