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Ph:DR: Mr. Antonio PEDRO, Acting Executive Secretary of ECA
The ministerial segment of the 55th session of the Conference of the Economic Commission for Africa, of African Ministers of Finance, Planning and Economic Development opened its proceedings on Monday (March 20) in Addis Ababa, Ethiopia. “Fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities”this is the theme of this session scheduled for two days (March 20 and 21, 2023. This ministerial segment will decide on the recommendations of the work of the Committee of Experts, on March 15, 16 and 17. Taking stock On this work and the various panels, Acting Executive Secretary of the ECA, Antonio Pedro says that the news is moderately good when it comes to growth and inflation in Africa.
Aline ASSANKPON
During the opening speeches of the Ministerial Segment of the 55th Session of the ECA Conference, following the Senegalese, Bamba Diop, Director General of Planning and Economic Policy, Chairman of the outgoing Bureau, the Acting Executive Secretary of ECA, Antonio Pedro, notes that the African continent is at the center of global transitions towards sustainability; in particular for the decarbonization of production systems, the electrification of transport infrastructure, the accelerated deployment of renewable energies, demographic dynamics and climate action in general.
“These transitions should underpin Africa’s path to recovery, ensuring structural transformation and economic diversification, building resilience and achieving sustainable and inclusive growth, in line with Agendas 2030 and 2063” declared M. Antonio Pedro.
“There is moderately good news – Africa’s growth is rebounding to 4.1% and inflation has been reduced to 12% so far. However, experts say we need double-digit growth rates to make a breakthrough on the continent and promote a new cycle of sustainable growth and an invigorated business and innovation climate” he specifies.
To achieve this, the following prerequisites must necessarily be met: Pay particular attention to the establishment of solid macroeconomic fundamentals to enable structural transformation; Ensure adequate access to finance and push for reform of the global financial architecture to unlock long-term finance, green jobs, pro-poor policies, fiscal mechanisms and the fight against illicit financial flows and Reduce the risks of investing on the continent for domestic and foreign investors.
“To support this, immense efforts are needed to develop a credible pipeline of bankable projects. With limited fiscal space, every dollar spent must generate maximum socio-economic impacts and co-benefits that go beyond measures of GDP and profit maximization. And no one should be left behind stressed the Acting Executive Secretary of ECA.
Next to nearly 695 million people are at risk of poverty
“Fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities”, in view of the relevance of this theme chosen for the present meeting, it must be recognized that the African continent was already languishing under the weight of poverty and inequality before the advent of the global crises which worsened the already disastrous situation. And if nothing is done, this situation risks reversing the hard-won progress of the past two decades.
“We now face a future where the total population of poor and non-poor who are at risk of falling into poverty in Africa is nearly 695 million. Worse still, the hardest hit are those who recover the slowest. Getting back on track could take years if urgent action and coordination is not taken at global, regional and national levels” warned M. Pedro.
For urgent measures and coordination…
At the global, regional and national levels, urgent measures are needed to reduce economic and social vulnerability, reduce economic inequalities, promote inclusive and resilient growth and accelerate poverty reduction in Africa.
“This will require an innovative people-centred development model that seeks to mainstream poverty and inequality reduction into national and regional development strategies” reminds the SE of ECA.
For a social State, it is also necessary to strengthen the social pacts; improve the quality of multi-stakeholder dialogues and participation in policy and decision-making. “We need to improve our understanding of the political economy of change and how to use behavioral incentives and nudges to achieve our strategic goals he adds.
One possibility: Leveraging green finance for an accelerated green recovery
In addition, the existential threat of climate change continues to loom over countries. “The financing available to African countries to fight climate change and ensure a green recovery is insufficient and inadequate” find Anthony Peter. “But leveraging green finance to accelerate the possibility of a green recovery may be within reach” he reassures.
Convinced that prosperity is within our reach. Mr. Pedro alerted participants to the ecosystem of transformative change in Africa that will require solutions to be co-created, mobilizing multiple stakeholders at continental, sub-regional, national and local levels. “We need to create real hives of collaboration” he said.
In conclusion, he invites the Ministers of Finance, Planning and Development to this Session to explain how Africans can harness what they possess in terms of wealth, natural resources, in order to unleash the transformative change that awaits us.
Likewise, it invites them to visit, discover and celebrate the individual and collective work and achievements of ECA. In doing so, they will be able to provide ECA with other innovative means of evaluating the work that is being done.
