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In terms of opportunities, the ZLECAf appears as a unique negotiation tool…
The continent is ideally placed to be at the center of all global transitions. Recent crises have highlighted the need for systemic change. Policymakers and experts around the world are recognizing the importance of building resilient and sustainable systems, moving away from the focus on efficiency that has dominated in recent decades.
Aline ASSANKPON
“This represents a paradigm shift of historic significance, and it is the responsibility of our generation to ensure that Africa embraces this shift and harnesses the continent’s potential” ECA Acting Executive Secretary Antonio Pedro said before continuing: “We must secure the investments needed to sustainably build capital in critical assets – including human, infrastructural and natural – to provide us with the necessary environment to achieve the ambitions of Agenda 2030 and Agenda 2063.”
Indeed, to accelerate the implementation of these two “critical” agendas, Mr. Pedro invites governments to design strategies that simultaneously integrate economic, social and environmental objectives and build on the opportunities available to us. These include: First, financing the development of our countries. “Getting the right macroeconomic fundamentals in place can unlock the potential of local solutions. The right domestic policy actions can take us from a tax-to-GDP ratio of less than 17% to levels currently seen in Latin American and Caribbean countries at 21.9%” advises Antonio Pedro.
“However, this must not stop our rallying call for a fairer and fairer global financial architecture that meets the needs of the most vulnerable” he recalls.
“Currently, many countries simply cannot access international financial markets due to rising interest rates, and existing debt relief mechanisms are not working well for us” notes the Executive Secretary of ECA.
To address this financial gap, he therefore calls for an SDG stimulus of around $500 billion a year, focused on tackling the high cost of debt and the growing risks of over-indebtedness, increasing long-term financing Affordable term for the development and expansion of emergency funding to countries in need.
“Another opportunity is the aggressive pursuit of sustainable industrialization and economic diversification to turn Africa’s natural resources into tangible benefits for its people, the battery and power value chain being an example. ”.
“Simply put, our natural resource wealth should benefit the many, not the few. To get to this point, we have to be intentional in our approach. This is where the African Continental Free Trade Area (AfCFTA) can deliver on its promise and provide economies of scale to invest in manufacturing, which will lead to increased intra-African trade.”
“This will bring supply chains closer to home and inject some degree of self-sufficiency in essentials such as medicine, food and fertilizer.”
On this point, “the AfCFTA stands out as a unique negotiating tool as we negotiate for justice and equity in the use of our natural resources for development”.
The Acting Executive Secretary of ECA, invites Governments to be at the center of climate action. “While we cannot ignore the fact that we are suffering disproportionately on impact and finance, we have significant opportunities to rebalance the balance of climate finance” he explains.
“If we take advantage of our rainforests and develop our carbon markets, we could unlock an estimated $82 billion per year, at $120 per tonne of CO2 sequestered, and create an additional 167 million jobs. This exceeds the unfulfilled promises of $100 billion for climate change adaptation and mitigation”.
