African development: ECA calls for innovative people centered model

“However, pundits argue that we need double-digit growth rates to achieve a breakthrough and promote a new cycle of sustainable growth and a reinvigorated business and innovation climate.

“This will require paying detailed attention to ensuring that strong macroeconomic fundamentals are in place to allow for structural transformation.

“We also need adequate financing and push for a reform of the global financial architecture to unlock long-term financing, green jobs, pro-poor policies, tax mechanisms and curbing illicit financial flows,” he said.

The acting secretary said there was the need to de-risk investment on the continent for both domestic and foreign investors, adding that immense efforts were required to develop a credible pipeline of bankable projects.

Pedro said that with limited fiscal space, every dollar spent must generate maximum socioeconomic impacts and cobenefits beyond Gross Domestic Product (GDP) metrics and profit maximisation.

He said it was for this reason that this year’s theme, “Fostering Recovery and Transformation in Africa to reduce Inequalities and Vulnerabilities,” was pertinent.

According to Pedro, poverty and inequality are already significant in Africa before the recent global crises. These overlapping crises worsen and threaten to reverse two decades of hard-won progress.

He said Africa was facing a future where the total population of poor and non-poor who faced the risk of falling into poverty was nearly 695 million.

Pedro said that those hardest hits were the ones who recover the slowest, and getting back on track would require years of urgent action and coordination at the global, regional, and national levels.

The ECA boss said Africa needed to adopt measures to mitigate the economic and social vulnerability, reduce economic inequality, foster inclusive and resilient growth, and accelerate poverty reduction.

“To strengthen social compacts, we need to improve the quality of multi-stakeholder dialogues and participation in policy and decision-making. We need a social state!

“`We need to improve our understanding of the political economy of change and how to use behavioural incentives and nudges to achieve our strategic goals.

“We see the existential threat climate change continues to pose to countries, yet, the financing available to African countries to combat climate change and ensure a green recovery is insufficient and inadequate.

“But leveraging green finance to accelerate the possibility of a green recovery can be within reach,’’ e said.