- As African Economic Conference opens, leaders call for bold reforms and decisive action to accelerate Africa’s dream of becoming a global powerhouse
AFRICA – Africa’s economic success and sustainability are intrinsically linked to accountable governance, Botswana’s president, Duma Boko, stressed at the opening of the 2024 African Economic Conference in Gaborone.
“Peace and stability in Africa must be anchored on accountable and responsive governance,” the president said adding, “This is a fundamental human right for every African citizen. It sets the requisite bedrock for any form of measure for our economic development and its sustainability.” He also called on African countries to strengthen democracy and uphold the rule of law.
The three-day conference, with the theme, “Securing Africa’s Economic Future Amidst Rising Uncertainty,” has brought together leaders, policymakers, and experts to address the continent’s economic challenges and opportunities. Organised by the government of Botswana, the African Development Bank, the United Nations Economic Commission for Africa (ECA), and the United Nations Development Programme (UNDP), the event seeks actionable solutions for Africa’s economic growth.
President Boko underscored that transparency, accountability, and respect for the rule of law are critical in attracting foreign investment and fostering sustainable growth. “Africa is at a crossroads,” he said. “We must confront the obstacles facing our citizens and leverage our collective strengths to secure a prosperous future amidst a volatile global economic environment characterized by rising inflation, supply chain disruptions, and tightening monetary policies.”
He also underscored Africa’s unique endowments, including its abundant natural resources and youthful population, which could drive transformative growth if governments prioritise education, skills development, and value addition for raw materials.
Addressing Africa’s economic and social challenges
The United Nations under-secretary-general and executive secretary of ECA, Claver Gatete, said Africa faced several pressing issues, including climate change, unsustainable debt, and systemic global inequalities. The global financial system is failing to serve Africa adequately and needs to be urgently reformed.
Gatete highlighted that the continent’s annual losses from climate disasters alone are as high as $440 billion, while the financing gap to achieve the Sustainable Development Goals in Africa has surged to $1.3 trillion annually. At the same time, Africa’s external debt surpassed $1 trillion in 2023, with unsustainable interest payments restricting development financing.
“The human cost is equally staggering. Nearly 476 million Africans live in poverty today, with 149 million falling into this bracket recently due to cascading climate and economic shocks,” Gatete said.
Regional reforms and integration are critical
President Boko encouraged African nations to leverage the African Continental Free Trade Area to transform the continent’s economic landscape through increased investment, job creation, and industrialisation.
“We must not allow the uncertainties of today to deter us from the opportunities of tomorrow,” he told participants.
Chief economist and vice-president of the African Development Bank Prof. Kevin Urama, urged African countries to adopt innovative, homegrown solutions tailored to its unique challenges. He advocated for strengthened fiscal policies and more resilient resource mobilization to address debt challenges.
Innovative financial solutions for growth
UNDP Africa Bureau director Ahunna Eziakonwa called for innovative and sustainable financial solutions to reduce borrowing costs and address credit rating biases, which cost the continent $76 billion annually.
“We must take steps to ensure that Africa’s abundant resources finance its growth,” said Eziakonwa, adding that, “Africa’s money must work for Africa’s people. We must stem illegal flows where $90 billion is lost. Tens of billions of pension funds, sovereign wealth funds, and insurance funds must work for the continent rather than elsewhere.”
