This report is the third annual report produced by the North Africa regional office of the African Development Bank.. This year, the focus of the report is on the underlying challenges the region faced before the Arab Spring, and further explores how the political transition taking will reshape North Africa, in particular its economic future.

In Chapter One, the report explores the outlook of North Africa's diverse economies while providing policy recommendations for confronting long-standing issues of youth unemployment, regional inequality and governance. Chapter Two delves further into the sources of economic grievances contributed to the political changes witnessed in 2011, and explores the causes and consequences of youth unemployment in the region.

The report highlights areas where North African can focus on the bulge in its young population as an advantage and a future dividend.. Chapter Three evaluates the current state of exports in the region and proposes that by adding more value to the products made in North Africa, the region has an opportunity to move up the value chain and encourage the type of growth that could deliver jobs to its fast-growing young population. Finally, in Chapter Four the report details the African Development Bank's role in the Deauville Partnership and its current efforts at coordinating with other international financial institutions to support the region.

The rest of this year's report provides a brief introduction to the Bank Group (in Chapter Five), an overview of the Bank Group's activities in North Africa (Chapter Six). Chapter Seven gives a summary of the Group's regional activities and the key Regional Economic Communities of the North Africa . Contact details are given in Chapter Eight. We hope you find this report useful and would welcome any feedback you may have.

Contacts

Vincent Castel