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President Bola Ahmed Tinubu has called for cooperation among African countries and the rest of the world to tackle their shared economic challenges and take advantage of opportunities.
He also claimed that his administration is currently undertaking bold economic policies to propel Nigeria’s economy out of the downturns occasioned by multiple shocks in the global economy.
The President made the remarks on Friday during the opening session of the ongoing 2024 African Caucus Meeting at the Transcorp Hotel in Abuja with the theme, “Facilitating Intra-African Trade: Catalyst for Sustainable Economic Growth in Africa,” noted that although Africa is grappling with “numerous challenges across economic, humanitarian and social spheres,” countries on the continent must take necessary measures to translate opportunities in natural resources and human capital into growth, innovation and collaboration.
This is as director general of the World Trade Organisation, Ngozi Okonjo-Iweala; deputy secretary general of the United Nation, Amina Muhammed and African Union commissioner for economic development, trade, tourism, industry and minerals, Ambassador Albert Muchanga among other speakers at the event called on fiscal and monetary leaders of the African continent to focus more on implementation of the African Intercontinental Free Trade Area agreement with special attention on reducing cost of trade and borrowing to better tract investments into the environment.
They agree that Africa has to improve on the business environment to create wealth and job opportunities, especially for it’s largely youth population.
To realise the potentials of inter Africa trade integration, we need to lower rate cost across the continent,” Dr Okonjo-Iweala said the larger unified markets in Africa are ones of the young people represented by the African continental free trade area which will help turn the continent into a stronger base for producing for local markets and for attracting investment. “This will help African economies sustain greater foreign exchange earnings in the years ahead.”
Africa accounts for only about three per cent of global groups rate and an even lower proportion of global services, a problem Dr Okonjo-Iweala said needs to be quickly addressed for businesses in the continent to survive and thrive. “To realise the full potential of the inter intra African trade integration to drive growth, we need to lower rate costs across the continent and that is why the African Caucus’s focus on facilitating trade is so timely,” she stated.
President Tinubu who was represented at the event by his deputy, Vice President Kashim Shettima said the African Caucus Meeting is an opportunity to brainstorm on the major “challenges and strategies for fostering inclusive growth and sustainable development in Africa”.
He urged African countries to improve the quality of life for people across the continent by ensuring that democracy, good governance, and economic institutions work together.
The President said, “As a government, we have initiated bold economic reforms aimed at steering our economy away from the downturns caused by multiple shocks in the global economy toward a path of recovery and resilience through significant economic transformation.
“Our reform efforts have been strategically focused on fostering fiscal and monetary efficiency, driving sustained long-term economic growth, and catalysing job creation in alignment with the SDGs’ priorities.
“We remain committed to optimising our economic potential, delivering favourable outcomes for our citizens, and ensuring the overall sustainable development of the regional economy. Our efforts are yielding positive results, with improved macroeconomic stability and increased investment.”
President Tinubu further drew attention to the need to enhance international tax cooperation to combat illicit financial flows and ensure multinationals contribute fairly to economies on the continent.
Seeking global cooperation in this regard, he said, “We need enhanced international tax cooperation to combat illicit financial flows and ensure that multinationals contribute fairly to our economies. We must also foster global economic cooperation to tackle shared challenges and leverage opportunities.
“However, we must also acknowledge the need to take responsibility for our own development by undertaking the difficult structural and fiscal reforms required to boost long-term growth and enable reinvestment into our economies through infrastructure and effective social spending.”
President Tinubu describes the caucus meeting as a vital platform to share experiences, forge partnerships, and chart a collective path forward.
“Africa’s story is one of resilience, creativity, and hope. Indeed, we have made significant strides in recent years, with many of our nations achieving remarkable economic growth, social progress, and political stability.
“Yet, obstacles such as increasing poverty, rising debt across many countries, inequality, and conflicts continue to widen the gap between our continent and the 2030 Agenda for Sustainable Development Goals. This is a matter of serious concern,” he added.
In his welcome address, chairperson of the Caucus/Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Edun, said, “Based on available data, 41 African countries are set for stronger growth of up to 3.8 per cent from about 3.4 per cent in 2022 and rising to 4.3 per cent in 2025. These exceed the global average of about 3.2 per cent.”
Africa stands at a crossroads, with unprecedented opportunities for development alongside significant challenges.
CBN governor Cardoso said to navigate this complex landscape and set the continent on a path of sustainable economic growth, “we must leverage the support of our global partners,” pointing to the need for the International Monetary Fund (IMF) and the World Bank Group to rise in support of the continent in its quest to unlock the continent’s vast potential.
The continent stands on the threshold of a new era in African economic cooperation through the African Continental Free Trade Area (AfCFTA), which the keynote speaker, Lord Boateng said is a game changer that must be harnessed for the betterment of the continent. “We have to agree on the fundamentals,” he stressed at the event.
Boateng said Africa has regressed so much in economic diversification despite the enormous talents and natural resources at its disposal. He said the AfCFTA offers opportunities that can only be activated with good and responsible leadership at all levels. “Decisions on currency convertibility, cross border transactions, payment systems, cross border movements of our peoples, goods, and services, as well as financial policy, will be instrumental to determining the success of the AFCTA,” Cardoso said.
Minister of finance and coordinating minister of the economy, Wale Edun said Africa demographics present tremendous potentials that should be explored. He said the African Caucus meeting will focus on strengthening the pan African payment system digitalisation, revenue mobilisation and more with a focus on charting a common way for the continent. Edun said the resolutions from the meeting would be communicated to the heads of IMF and World Bank ahead of the October annual spring meetings.
Muchanga called for domestic resource mobilisation to boost the continent’s economy. He said ensuring access to financing will be helpful to reduce the cost of borrowing. “Greater economic integration will contribute to eco growth. This will help Africa economies to sustain growth,” Ambassador Muchanga said.
Established in 1963 to strengthen the voice of African Governors in the Bretton Woods Institutions (BWIs), the African Caucus chaired by Edun, meets twice annually; first, in the host country of the Chairperson of the Caucus and secondly, at the venue of the Annual Meetings of the IMF and WBG.
On his part, Governor of the Central Bank of Nigeria, Olayemi Cardoso, emphasised the significance of the meeting, saying Africa stands at a “crossroads with unprecedented opportunities for development alongside significant challenges.
“To navigate this complex landscape and set the continent on the path of sustainable economic growth, we must leverage the support of our global partners,” he added.
For his part, African Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, Ambassador Albert Muchanga, noted the importance of domestic resource mobilisation.
“We must see the African market as a viable channel for domestic resource mobilisation to address the issue of the continent’s sustenance,” he noted.
Ngozi Okonjo-Iweala in comprehensive analysis of Africa’s economic situation and potentials, emphasised the need for greater regional integration, just as she said, “According to UN data for 2021, only 13 per cent of Africa’s goods trade was internal, compared to 21 per cent for Southeast Asia, 39 per cent for the US, Mexico, and Canada, and 60 per cent for Europe.”
Mohammed, stressed the importance of trade facilitation, a Pan-African payment and settlement system, as well as increased access to energy and connectivity.
She also addressed the challenges of public investment, saying “last year, an extraordinary 48 per cent of government revenue in sub-Saharan Africa alone went to meeting debt payments.”
On his part, Prime Minister of Rwanda, Dr. Edouard Ngirente, who emphasised the transformative potential of the AfCFTA, said, “We stand at a crucial moment in Africa’s economic history.
“With coordinated efforts and unwavering determination, we can unlock the vast potential of intra-African trade and secure a prosperous future for our continent,” he assured.
The Prime Minister called for concrete actions to remove trade barriers, harmonise regulations, and create a truly integrated African market.
He stressed that these efforts would not only boost trade but also drive innovation, create jobs, and improve living standards across the continent.
Also, a member of the UK House of Lords and keynote speaker at the event, Boateng, expressed worry that Africa has regressed in diversification and competitiveness over the last 20 years.
“This has diminished the continent’s resilience to shocks and external volatility. From five per cent of global trade at independence, it has now declined to three per cent.”
“We need to adopt aspects of the technological revolution that we are late to, such as blockchain technology and artificial intelligence, which have the potential to transform trade on the continent,” Boateng stated.
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