Africa’s accelerated growth is creating optimism throughout the continent. This month, ministers, civil servants and bankers will gather in Washington to consider how to boost development and improve public financial management still further

Cape Town’s Victoria and Alfred Waterfront or Zanzibar packed with tourists, a bustling marketplace in Kigali, thousands of oil and gas workers arriving at Lagos International Airport in Nigeria. Such images – positive, vibrant and energising – offer not only a snapshot of life in Africa today, but also showcase the economic growth, diversifying economies, democratisation and vast potential of the continent.

Africa’s recent accelerated growth has been underpinned by a process of economic and regulatory reform since the end of the cold war; a period during which inflation has been brought under control, foreign debt and budget deficits reduced, state-owned enterprises privatised, regulatory and legal systems strengthened, and many African economies opened up to international trade and investment.

At the same time, the region has continued to suffer from some traditional problems: poverty, unemployment, erratic food harvests resulting from adverse weather conditions and high inflation, driven by higher food and fuel prices. And events such as the recent Ebola outbreak underline that Africa’s health care systems remain some way behind those in the developed world.

It is against this backdrop that finance ministers, central bank governors and permanent secretaries from eastern and southern Africa will gather in Washington next month. This annual forum — organised by the Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) — is designed to boost collaboration and solve common problems.

Participants this year will consider how to stimulate growth and development. There is much to discuss.

Africa’s story is replete with opportunity. Perhaps this is inevitable. The sheer size and diversity of the continent means there will always be good news and bad, some progress and some regression. In recent years, however, there is little doubt that African countries have made huge progress. Democratisation, economic growth and (slowly) improving infrastructure are all testament to a continent on the rise. But there is always scope for improvement — a point highlighted by EY’s 2014 Africa attractiveness survey.

We found that in 2013, Africa’s share of global Foreign Direct Investment projects reached 5.7%, its highest level in a decade. The number of new FDI projects in sub-Saharan Africa increased by 4.7%.

The prime factors behind the sub-Saharan African growth story are strong macroeconomic growth and outlook, an improving business environment, a rising consumer class, abundant natural resources, the democratic dividend and infrastructure development. African investors nearly tripled their share of FDI projects over the last decade, and intra-African investment has also driven job creation on the continent. This growth is fuelled by the need for improved regional value chains and strengthened regional integration.

It’s not all good news. The total number of new FDI projects declined by 3.1% due to political uncertainty in north Africa, and our survey also found that the perception gap between those already doing business on the continent, and those with no presence, remains striking. More specifically, although those already active on the continent rank it as by far the most attractive destination in the world today, those who are yet to invest are far less enthusiastic, ranking Africa as least attractive.

This year’s MEFMI forum will discuss, among other things, cross-border infrastructure development and re-orienting public spending priorities. Infrastructure gaps, particularly relating to logistics and electricity, have consistently been cited as the biggest challenges by those doing business in Africa. The flipside of this challenge, though, is that strong growth has occurred despite such infrastructure constraints — consider the potential not only to sustain, but to accelerate growth as the gap narrows.

African policymakers — much like their counterparts around the world — also need to maximise their revenues. A critical component of this is designing a tax system that raises revenue in both the long- and short-term, without harming the business environment or making it harder to secure investment. Similarly, the application of clear and consistent policies, controls and procedures is now recognised as crucial to ensuring wiser spending and the efficient deployment of resources — particularly important given that the public sector wage bill is expanding.

That government spending in Africa is increasing highlights the need to strengthen institutional capacity and implement spending reforms to strengthen public service delivery. Potential public financial management changes include strengthening the processes for appraisal, selection, implementation and audit of investment projects. There could also be improved ministerial coordination in the budgeting process, a clearer promotion of fiscal transparency and enhanced fiscal policy frameworks.

These reforms will be underpinned by the same networks and technologies that are transforming society at large — why should governments be exempt from changing the way they work and engage with citizens? Finance professionals need to bring a global mindset: to understand what is going on around the world and know what solutions are being applied to longstanding issues — with first-hand, evidence-based knowledge. This approach will enable government finance professionals to look beyond electoral cycles, national borders and outmoded organisational boundaries.

The focus in looking ahead is often on the challenges we still face. But it is also important to emphasise the abundant potential. While Africa’s uncertainty, complexity and volatility may test even the best-laid strategies, the rewards are very real. The creation of an enabling environment, together with the continent’s huge endowment in natural resources, its large and growing labour force and low labour costs, mean that Africa’s policymakers – including those at October’s meeting in Washington – have much to be grateful for.

Joe Cosma is EY’s government & public sector leader in Africa

The annual MEFMI combined forum takes place in Washington on October 6

This opinion piece was first published in the October edition of Public Finance magazine