E-Business
The Hanke’s Misery Index: How Africa’s Economic Challenges Are Holding Back the Continent Part 3
By Evans Woherem, Ph.D
Addressing the Root Causes
The section highlights the urgent need to address the root causes of poverty and economic challenges in many African nations. It emphasizes the importance of decisive action, effective leadership, and learning from successful examples to overcome these challenges and foster sustainable development.
The section also covers various key areas, including addressing immediate challenges, implementing sustainable economic strategies, promoting infrastructure development and regional integration, and the significance of unity among African nations.
- Addressing Immediate Challenges
Addressing the immediate challenges faced by African nations, as highlighted by the Hanke’s Annual Misery Index of 2022, is crucial. This section emphasizes the importance of tackling inflation, unemployment, and poverty-contributing factors to create an enabling environment for economic growth and improved well-being. To overcome these challenges, decisive action and effective leadership are required, prioritizing the well-being of citizens and implementing sustainable economic policies.
In order to accelerate development, African countries need to learn from successful examples. By studying countries that have transformed their economies and improved living standards, Africa can adapt their strategies and adopt a comprehensive, multi-pronged approach. This approach should include economic reforms, investments in education and skills, promotion of entrepreneurship, strengthening of institutions, improvement of infrastructure, and fostering regional cooperation.
By addressing the challenges highlighted by the Misery Index, African nations can create a favorable environment for economic growth and improved well-being. Effective leadership, learning from successful experiences, and implementing a comprehensive approach are essential for overcoming the present challenges and setting Africa on a sustainable path of development and prosperity.
- Implementing Sustainable Economic Strategies
To foster sustainable economic growth in Africa, it is crucial to address the root causes of economic challenges with comprehensive and innovative strategies. This includes implementing prudent fiscal policies to combat inflation effectively, controlling government spending, managing public debt, promoting transparency and accountability, and tackling waste and corruption in government spending. Additionally, creating sustainable employment opportunities through investments in sectors with growth potential, promoting entrepreneurship, vocational training programs, and public-private partnerships can empower individuals and drive economic progress.
Political stability is paramount for long-term economic growth. Fostering peaceful and inclusive societies, resolving conflicts through dialogue, and strengthening democratic institutions are key aspects to focus on.
By promoting the rule of law, protecting human rights, ensuring citizen participation, and establishing transparent governance structures, African nations can create a favorable environment for investment and sustainable development, attracting investments and encouraging the establishment of transparent governance structures.
Facilitating affordable and accessible credit is vital for stimulating investment and economic growth. African governments should work towards creating an enabling environment for credit access by implementing sound financial regulations, promoting competition among financial institutions, improving financial literacy, and empowering individuals and businesses with favorable credit terms through measures like credit guarantees for small enterprises.
- Promoting Infrastructure Development and Regional Integration
To achieve a sustainable future, Africa must prioritize infrastructure development and regional integration. Addressing Africa’s reliance on imported energy sources is a critical aspect of this endeavor.
By promoting decentralized renewable energy systems, such as mini-grids and community-owned projects, Africa can provide electricity access to remote areas while involving local communities in renewable energy initiatives.
These decentralized systems not only reduce dependence on imports but also yield cost savings, enhance energy security, lower emissions, and stimulate local economic growth. Successful implementation of these projects necessitates government support, financial incentives, and collaboration with the private sector.
In addition, digital connectivity and financial inclusion are instrumental in driving economic growth and development in Africa. By expanding broadband infrastructure and leveraging blockchain technology, Africa can revolutionize access to digital services, e-commerce, and education, thereby uplifting millions of lives.
This expansion of internet access extends the benefits of online banking, e-commerce platforms, and educational resources to underserved rural communities, fostering communication and collaboration between businesses and government agencies. Blockchain technology ensures secure and transparent financial transactions, effectively curbing fraud and corruption and bolstering trust in financial systems. Together, digital connectivity and financial inclusion empower Africa, promoting inclusivity and prosperity.
Furthermore, sustainable infrastructure development plays a crucial role in building a greener and more efficient future for Africa. By prioritizing green infrastructure projects, such as renewable energy-powered transportation systems and energy-efficient buildings, Africa can significantly reduce greenhouse gas emissions, improve air quality, and generate employment opportunities in the clean energy sector. Integrating smart city concepts further enhances efficiency by leveraging technology to optimize traffic flow and monitor energy usage, promoting sustainable urban development.
To drive economic progress, regional integration and trade promotion are vital for Africa. Strengthening regional economic communities encourages collaboration, reduces trade barriers, and harmonizes regulations, facilitating cross-border investments.
Developing robust transport and logistics networks enhances connectivity, enabling seamless movement of goods and services between businesses and markets. By promoting cross-border investments, Africa can leverage new technologies, skills, and job opportunities, fostering sustainable growth and development across the continent.
In conclusion, promoting infrastructure development and regional integration is crucial for Africa’s sustainable future. By focusing on decentralized renewable energy systems, digital connectivity, sustainable infrastructure, and regional collaboration, Africa can overcome challenges, drive economic growth, and foster prosperity.
- Uniting African Nations for Economic Progress
The unity and cooperation among African nations through regional or continental integration are paramount for driving economic progress. Currently, intra-Africa trade represents just 14.4% of total African exports. However, according to forecasts from the United Nations Conference on Trade and Development, implementing the African Continental Free Trade Area (AfCFTA) has the potential to boost intra-Africa trade by approximately 33% and reduce the continent’s trade deficit by 51%. The relatively low levels of intra-regional trade in Africa compared to other regions like Europe (69%), Asia (59%), and North America (31%) underscore the need for enhanced collaboration within the continent.
The urgency for African countries to unite at the regional or continental levels cannot be overstated. Many African nations lack the necessary size and strength to effectively operate on their own. Encouragingly, the ongoing efforts made by East African countries towards unity serve as an inspiring example for the rest of Africa, emphasizing the importance of cooperation in addressing pressing economic challenges. Prompt adoption of the East African model by other African countries and regions is essential.
The African Union (AU) has already taken significant strides in tackling economic challenges through initiatives like the AfCFTA, African Agenda 2063, and the development of the Pan-African Payment and Settlement System by the African Export-Import Bank. These commendable efforts deserve recognition and support as they hold tremendous potential to drive Africa’s development. It is crucial to effectively implement these projects within their designated timeframes.
Successful execution of these initiatives would not only enhance intra-Africa trade but also contribute to overall economic growth and prosperity in Africa. Given the urgency of the situation, it is imperative for all African countries to unite and collectively overcome the obstacles that have hindered their progress.
Investing in critical areas such as inflation management, unemployment reduction, poverty alleviation, entrepreneurship promotion, political stability, affordable credit, renewable energy, digital connectivity, sustainable infrastructure, and regional integration is vital for Africa’s development.
By adopting a comprehensive approach and drawing inspiration from successful examples, Africa can reduce poverty, improve the quality of life, and stimulate economic growth. Effective leadership, innovation, and a commitment to learning from successful experiences are essential in paving the way towards a prosperous and inclusive future for Africa. The unity of African nations is the key to unlocking the continent’s economic potential.
Conclusion
The economic challenges faced by African countries, as evidenced by the Hanke’s Annual Misery Index of 2022, highlight the urgent need for comprehensive and targeted strategies to address the root causes of these issues. Factors such as inflation, unemployment, political instability, and poor governance have a profound impact on the well-being and development of African nations. To overcome these challenges and unlock Africa’s economic potential, a multi-faceted approach is necessary.
Addressing inflation requires prudent fiscal policies, control over government spending, transparency, and accountability to combat rising prices. High unemployment rates, particularly among the youth, call for investments in education, vocational training, entrepreneurship promotion, and public-private partnerships to create sustainable job opportunities. Political stability is crucial for long-term economic growth, and it can be fostered through peaceful and inclusive societies, resolving conflicts, and strengthening democratic institutions.
To stimulate investment and economic growth, affordable and accessible credit must be facilitated through sound financial regulations, competition among financial institutions, and favorable credit terms for individuals and businesses.
The promotion of decentralized renewable energy systems can reduce Africa’s reliance on imported energy sources, improve energy security, and foster local economic development. Digital connectivity, financial inclusion, and the adoption of blockchain technology can revolutionize access to digital services, e-commerce, and education, promoting inclusivity and prosperity.
Sustainable infrastructure development, prioritizing green projects and smart city concepts, is essential for building a greener and more efficient future in Africa. Regional integration and trade promotion play a vital role in economic progress by fostering collaboration, reducing trade barriers, and enhancing connectivity. In fact, Africa needs to unite into confederated countries in order to maximize its potential and its place in the committee of nations.
By investing in these areas and adopting innovative strategies, Africa can address the root causes of economic challenges, reduce poverty, and promote sustainable economic growth. Effective leadership, learning from successful examples, and a commitment to comprehensive development are crucial in transforming the economic landscape of Africa and improving the livelihoods of its people. With the right policies and actions, Africa can pave the way for a prosperous and inclusive future.
Bamboo, the investment platform enabling Africans to invest globally through real-time access to global markets, has announced the launch of its remittance app, “Coins by Bamboo.”
Backed by the Canadian Money Service Business licence, the new remittance app, available on the Google Play and Apple stores for download, will enable Nigerians in the diaspora to make faster, more secure and cheaper money transfers to loved ones from the convenience of their mobile phones.
The Y-Combinator-backed company was founded in 2019 as the first online brokerage service to connect Africans with the US stock market, allowing those across the socioeconomic bracket to buy and trade global stocks on the Bamboo app.
Coins by Bamboo is an extension of the brand ethos of Bamboo which is to give Africans the ability to invest in anything from everywhere. It further reflects the company’s commitment to democratising wealth building and facilitating meaningful investments in local communities as well as Africa’s future.
Having successfully scaled the Canadian vetting process to acquire an MSB licence, Bamboo is certified to offer remittance financial services to a high standard of regulatory and operational compliance.
The company is also able to take advantage of lessons it’s learnt connecting Africans with global asset classes to bring cost savings that are crucial for the millennials and Gen-Z who have migrated to Canada over the last ten years but still maintain strong ties to their home country.
Speaking on the announcement, Richmond Bassey, Co-founder and CEO of Bamboo says, “We are thrilled to officially launch “Coins by Bamboo” to the public. “Coins” is a logical evolution of our core values – providing an opportunity for Africans to participate in the global investment economy.”
Bassey continues, “We believe that one of the most preferred and important investments of Africans is in other Africans – investing in people and their futures through human capital development; and we want to contribute to making this a seamless process.
For us, this new app further ignites our mission to democratise access to investment opportunities for Africans by fostering social impact and opportunities to invest in the wellbeing of those who matter the most to them.”
Bamboo is also partnering with several charitable foundations including Women at Risk International Foundation (WARIF), Chess2Slums and Bethesda Home For The Blind to make it easier for Nigerians in the diaspora to donate to causes and projects that they care about.
According to the World Bank, remittance flows to sub-Saharan Africa peaked at $54 billion in 2023 and remittance via formal channels is projected to reach $283 billion by 2035. Yet, SSA continues to have the highest average remittance cost at about 7.9 per cent to every $200 compared to the global average of $5.
Historically, Nigeria dominates the remittance sector, sometimes accounting for up to half of the region’s inflows. With emigration at an all-time high, there remains a growing demand for affordable and accessible digital remittance solutions necessitating the birth of Coins by Bamboo.
The new app will offer competitive rates comparable to their counterparts, in addition to offering customers the unique opportunity to directly donate to a curated list of charities. It will be initially available to Africans in the Nigeria-Canada corridor before expanding to the United Kingdom.
For many in Africa, the remittance industry is a crucial lifeline. By addressing the high fees and complex transfer processes, Coins by Bamboo is offering a more streamlined and cost-effective alternative that benefits both senders and recipients.
Nigeria has reportedly invested $40 million in intercept technology and $583 million on public surveillance, according to a new report by Spaces for Change (S4C), a civil society organization.
So-called intercept technology and surveillance allow legally sanctioned official access to private communications, such as telephone calls or e-mail messages in a bid to enhance national security, prevent crime and aid criminal investigations.
Victoria Ibezim-Ohaeri, executive director of S4C, said that “The Nigerian government has allocated approximately $40m for intercept technologies and an estimated $583m on public surveillance projects with Chinese tech firms.”
Ibezim-Ohaeri, spoke at the West Africa Civil Society Week held in Abuja with the “Leveraging Technology for Civic Engagement and Social Change in West Africa”
At the event held in collaboration with Civic Space Resource Hub, West Africa Civil Society Institute and the Ford Foundation, Ibezim-Ohaeri stated that this expenditure prioritised security over essential public services like education and healthcare, raising questions about the government’s commitment to human rights.
With lawful interception (LI), law enforcement authorities, in response to a warrant from a judge, can perform interception, simply by applying a ‘tap’ on the telephone line of the target, making it possible for security agencies in Nigeria to listen to terrorist and criminal cell phone calls and gather communications intelligence on their dark activities.
But Ibezim-Ohaeri said her organization’s report emphasised the historical context of surveillance in Nigeria, linking colonial practices to modern state surveillance tactics.
Ibezim-Ohaeri noted, “Colonial authorities established a framework for surveillance that persists today, where security agencies continue to repress dissent and monitor civic actors.”
Key findings from the report indicated that the military regime significantly intensified state surveillance, enacting laws that curtailed press freedoms and facilitated the harassment of journalists and political activists.
“Just as the U.S. expanded surveillance post-9/11, Nigeria mirrored this response after the 2011 UN building bombing,” she remarked, referring to legislation that broadened surveillance powers under the guise of national security.
The report outlined how civic actors and opposition politicians are often the primary targets of these surveillance initiatives.
“Evidence shows that state governors have acquired surveillance technologies to monitor political rivals, demonstrating the pervasive nature of these tactics,” Ibezim-Ohaeri explained.
Furthermore, the report highlighted that most surveillance technologies used in Nigeria are imported from countries like Israel, China, and the United States, emphasizing the risks posed by dual-use technologies that can be repurposed for oppressive measures.
“The dual-use nature of these technologies significantly contributes to their unchecked proliferation, often leading to abuses by both state and non-state actors,” she stated.
Despite existing legal frameworks, the report criticised the inadequacy of regulatory controls over surveillance technologies.
“While laws exist to govern surveillance, their enforcement is weak, creating a fertile ground for abuse and misuse,” Ibezim-Ohaeri cautioned.
In light of these findings, the report called for urgent reforms, including improved regulatory oversight and transparency in the procurement processes for surveillance technologies.
“We need a commitment to human rights that begins at the production stage, ensuring that surveillance technologies do not infringe on civil liberties,” she said.
Llawful interception (LI), in response to a warrant from a judge, lawful interception is performed simply by applying a ‘tap’ on the telephone line of the target, making it possible for security agencies in Nigeria to listen to terrorist and criminal cell phone calls and gather communications intelligence on their dark activities.
Dr. Oba Otudeko, business mogul and chairman of Honeywell Group, has been awarded the prestigious “Doyen of Business” accolade at the recently concluded Family Business Summit 2024.
L-R: Tomi Otudeko, Head, Corporate Services, Honeywell Group Limited; Wole Abegunde, MD, Meristem Securities; Oba Otudeko, Founder and Chairman, Honeywell Group Limited; Foluke Oyeleye, Director, Honeywell Group Limited and Oghenevwoke Ighure, Convener, My Family, My Business, during the presentation of Doyen of Business Award to Oba Otudeko at the Family Business Summit 2024, held in Lagos on Thursday, October 17, 2024
The summit held on Thursday, October 17, at the Wheatbaker Hotel, Ikoyi, Lagos, and themed “Family Business Legacy: Strategies for Building and Maintaining Multigenerational Wealth,” focused on empowering family-owned enterprises and explored strategies for navigating leadership transitions and transferring wealth and values across generations.
Dr. Otudeko was recognised for his significant contributions to nation building and economic development through his various investments and commitment to job and wealth creation opportunities in Nigeria.
The citation described Otudeko as “a paragon of innovation,” noting his unwavering commitment to creating value and driving economic prosperity across multiple sectors through Honeywell Group Limited.
Under his leadership, the company has set new benchmarks in various industries, including food, agriculture, and real estate, fostering sustained excellence and growth.
At the event, Honeywell Group was also honoured with the ‘Revolutionary Family Business Award’ in recognition of its commitment to innovation, strategic leadership, and sustained excellence.
The company was lauded for consistently setting new standards across diverse industries it operates in, including food, agriculture, real estate, among others.
In his acceptance speech, Otudeko highlighted the importance of resilience in business longevity, noting that the ultimate measure of success is a legacy that outlives its founder.
“Business leadership is a continuous journey that transcends short-term gains.
“A legacy is built on resilience, and at an advanced stage, your primary concern becomes ensuring continuity at a level even higher than when you started,” he said.
He expressed gratitude to the event organisers, BusinessDay and PwC, for the recognition, noting that it serves as a motivation for emerging family businesses.
“I am honoured to receive this award, and I extend my heartfelt thanks to BusinessDay and PwC for this acknowledgement.
“As we look ahead, succession and the empowerment of the next generation of leaders must remain key priorities to guarantee that the legacy we are building today endures for generations to come.”
The summit also honoured other outstanding leaders, including Dr. Stella Chinyelu Okoli, founder and CEO of Emzor Pharmaceuticals, for her exceptional contributions to Nigeria’s pharmaceutical industry and overall economic development.
Several leading family-owned businesses were recognized for their impact, including Tolaram Group, Orange Drugs Limited, Daily Need Group, amongst others.
The Family Business Summit, an annual event, is dedicated to supporting the growth of family businesses in Africa.
It provides a platform for discussing the unique challenges facing these enterprises, particularly around succession planning, governance structures, and strategies for sustaining wealth across generations.
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