On Africa’s political and economic governance

ON pages 24-27 of this edition, is a an abridged version of a speech by Dr Mohamed Ibn Chambas, the AU High Representative on Silencing the Guns, at the ministerial meeting of the Economic Commission for Africa in Addis Ababa on March 10. Titled:

Governance, Social Contract, and Economic Development in Africa: Looking Back, Projecting into the future, Chambas’ speech traces Africa’s political and economic development from independence in the 1960s to the present day and laments that the lofty dreams of Africans at independence are yet to become reality.

Chambas’ speech is another in the never ending discourse on the region’s political and economic woes and the need to find lasting solutions to them.

Political and economic governance in Africa has been a subject of much scrutiny and debate, particularly in recent decades as the continent has experienced both progress and setbacks in various areas. Africa has a complex and diverse political and economic landscape, with over 50 countries that have a range of cultures, languages, religions, and historical backgrounds.

Publisher

Jon Offei-Ansah

Editor

Desmond Davies

Contributing Editors

Stephen Williams

Prof. Toyin Falola

Tikum Mbah Azonga

Contributors

Justice Lee Adoboe

Chief Chuks Iloegbunam

Joseph Kayira

Zachary Ochieng

Olu Ojewale

Oladipo Okubanjo

PUBLISHER’S NOTE

In terms of political governance, Africa has faced several challenges over the years. Many countries on the continent have experienced a history of authoritarian rule, with leaders that have clung to power for decades, stifled political opposition, and suppressed dissent. This has often resulted in weak democratic institutions and limited political freedoms, with little to no accountability for those in power. Such a lack of accountability has led to corruption, mismanagement of resources, and often resulted in social unrest.

Africa bucks global economic trend

Jon Offei-Ansah Publisher

Desmond Davies Editor

However, in recent years, there has been a positive shift towards more democratic governance in Africa. Many countries have held regular, transparent elections, and are taking steps to establish independent judiciaries and a free press. This change has been supported by civil society groups, media, and international organisations like the African Union, the United Nations, and the European Union. There have been some successful transitions to democracy in Africa, such as in Ghana and Botswana, where peaceful transfers of power have occurred.

Corinne Soar

Kennedy Olilo

Gorata Chepete

Designer

In 2018, six of the 10 fastest-growing economies in the world were in Africa, according to the World Bank, with Ghana leading the pack. With GDP growth for the continent projected to accelerate to four per cent in 2019 and 4.1 per cent in 2020, Africa’s economic growth story continues apace. Meanwhile, the World Bank’s 2019 Doing Business Index reveals that five of the 10 most-improved countries are in Africa, and one-third of all reforms recorded globally were in sub-Saharan Africa. What makes the story more impressive and heartening is that the growth – projected to be broad-based – is being achieved in a challenging global environment, bucking the trend.

Deputy Editor

Angela Cobbinah

Contributing Editor

Stephen Williams

Nonetheless, there are still many challenges to be addressed in African politics. There are still many authoritarian regimes in power, often supported by external actors with their own interests in the region. Many governments continue to suppress opposition, restrict press freedoms, and fail to uphold human rights. This often results in social unrest and a lack of trust in the democratic process.

Director, Special Projects

Michael Orji

Contributors

Justice Lee Adoboe

Simon Blemadzie

Country Representatives

South Africa

Edward Walter Byerley

Top Dog Media, 5 Ascot Knights

47 Grand National Boulevard Royal Ascot, Milnerton 7441, South Africa

In addition to political governance, economic governance is also an important aspect of African development. African countries have historically been reliant on primary commodities such as oil, gold, and diamonds. The over-reliance on commodity exports makes African economies susceptible to global commodity price volatility, which often leads to macroeconomic instability and social unrest.

In the Cover Story of this edition, Dr. Hippolyte Fofack, Chief Economist at the African Export-Import Bank (Afreximbank), analyses the factors underpinning this performance. Two factors, in my opinion, stand out in Dr. Hippolyte’s analysis: trade between Africa and China and the intra-African cross-border investment and infrastructure development.

Much has been said and written about China’s ever-deepening economic foray into Africa, especially by Western analysts and commentators who have been sounding alarm bells about re-colonisation of Africa, this time by the Chinese. But empirical evidence paints a different picture.

Chuks Iloegbunam

Joseph Kayira

Zachary Ochieng

Olu Ojewale

Oladipo Okubanjo

Tel: +27 (0) 21 555 0096

Cell: +27 (0) 81 331 4887

Email: ed@topdog-media.net

Ghana

Despite the decelerating global growth environment, trade between Africa and China increased by 14.5 per cent in the first three quarters of 2018, surpassing the growth rate of world trade (11.6 per cent), reflecting the deepening economic dependency between the two major trading partners.

Empirical evidence shows that China’s domestic investment has become highly linked with economic expansion in Africa. A one percentage point increase in China’s domestic investment growth is associated with an average of 0.6 percentage point increase in overall African exports. And, the expected economic development and trade impact of expanding Chinese investment on resource-rich African countries, especially oil-exporting countries, is even more important.

To address this challenge, African governments have initiated a range of economic reforms, such as promoting regional integration, strengthening public-private partnerships, and supporting entrepreneurship and innovation. Many African countries are implementing policies aimed at creating more diversified economies, reducing poverty, and increasing economic growth. One of the most significant initiatives in recent years has been the African Continental Free Trade Agreement, which seeks to create a single market for goods and services across the continent. Despite these efforts, Africa still faces several economic challenges. The continent has a large informal sector, with many people working in the informal economy, outside of the formal legal framework. This informal economy can make it difficult to collect taxes, monitor economic activity, and enforce regulations. African countries also face challenges with access to finance and technology, as well as a lack of infrastructure such as roads, electricity, and water. Furthermore, corruption remains a significant challenge in African economic governance. Corruption in Africa affects both the public and private sectors and often stifles economic growth and development. Many African countries rank low on corruption indices, and bribery and fraud are widespread in many sectors.

Corinne Soar

Gloria Ansah Designer

Country Representatives

South Africa

Edward Walter Byerley

Top Dog Media, 5 Ascot Knights

Nana Asiama Bekoe

Kingdom Concept Co.

Tel: +233 243 393 943 / +233 303 967 470 kingsconceptsltd@gmail.com

Nigeria

The resilience of African economies can also be attributed to growing intra-African cross-border investment and infrastructure development. A combination of the two factors is accelerating the process of structural transformation in a continent where industrial output and services account for a growing share of GDP. African corporations and industrialists which are expanding their industrial footprint across Africa and globally are leading the diversification from agriculture into higher value goods in manufacturing and service sectors. These industrial champions are carrying out transcontinental operations, with investment holdings around the globe, with a strong presence in Europe and Pacific Asia, together account for more than 75 per cent of their combined activities outside Africa.

47 Grand National Boulevard Royal Ascot, Milnerton 7441, South Africa

Tel: +27 (0) 21 555 0096

Cell: +27 (0) 81 331 4887 Email: ed@topdog-media.net

Ghana

Nana Asiama Bekoe

Kingdom Concept Co.

To address the issue of corruption, African governments have implemented several measures such as strengthening anti-corruption laws, increasing transparency in public procurement processes, and promoting accountability in the management of public funds. However, progress has been slow, and much more needs to be done to combat corruption and promote good economic governance in Africa.

A survey of 30 leading emerging African corporations with global footprints and combined revenue of more than $118 billion shows that they are active in several industries, including manufacturing (e.g., Dangote Industries), basic materials, telecommunications (e.g., Econet, Safaricom), finance (e.g., Ecobank) and oil and gas. In addition to mitigating risks highly correlated with African economies, these emerging African global corporations are accelerating the diversification of sources of growth and reducing the exposure of countries to adverse commodity terms of trade.

Nnenna Ogbu

#4 Babatunde Oduse crescent Isheri Olowora - Isheri Berger, Lagos

Tel: +234 803 670 4879 getnnenna.ogbu@gmail.com

Kenya

Tel: +233 243 393 943 / +233 303 967 470 kingsconceptsltd@gmail.com

Nigeria

Taiwo Adedoyin

Patrick Mwangi

Aquarius Media Ltd, PO Box 10668-11000

MV Noble, Press House, 3rd Floor

27 Acme Road, Ogba, Ikeja, Lagos

Nairobi, Kenya

Tel: 0720 391 546/0773 35 41

Email: mwangi@aquariusmedia.co.ke

Political and economic governance in Africa is a complex and multifaceted issue, influenced by a range of historical, cultural, social, and economic factors. While there have been positive developments in recent years, such as the promotion of democratic governance and economic reforms, there are still significant challenges to be addressed. African countries must work to strengthen institutions, improve infrastructure, and combat corruption, in order to promote sustainable and inclusive growth. The international community also has a role to play.

Tel: +234 806 291 7100 taiadedoyin52@gmail.com

Kenya

Naima Farah

Room 22, 2nd Floor West Wing

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March-April 2023