Bell has tolled for Africa’s socio-economic self-reliance

In a global situation whereby major powers of the world including the US Administration are busy closing humanitarian and development aid while exchanging sanctions and trade and tariff wars, African countries which are at the periphery of the global economic system are already feeling the effects of such protections measures and cannot afford to sit and wait. With its abundant economic natural resources and manpower, Africa can reverse the tide and strive for economic, political and social self-reliance. The time has arrived for this and the bell has toll.

In the post-independence era, Africa faced numerous challenges that disrupted visions and aspirations that its leaders had in store for their country. Independence brought up new and complex challenges that persist to date. Independence did not bring the freedom that Africans craved for but neo colonialism took the forum in Africa in a more vicious and venomous mode.

The author of this article wishes to dwell upon some salient features of what Andre Gunther Frank labeled as “development of under development”. Attempts is made to expound on the main effects and features, consequences and underlying reasons to explain why Africa was tied down in a vicious circle of poverty and under development.

According to UNCTAD report issued in 2024, in 2023, nearly half of African nations had debt-to-GDP ratios above 60%, with many spending more government revenue on debt interest than on education or health. Infrastructure gaps in transport, energy, and ICT drive up trade costs 50% above the global average, reducing competitiveness.

Interconnected crises, including geopolitical conflicts, the pandemic and commodity price shocks, have disrupted supply chains, raised trade costs and hampered investment, aggravating Africa’s structural weaknesses and vulnerabilities, the report added.

The report uses a new multidimensional framework to analyze vulnerabilities across six areas, highlighting how they are interconnected and amplify each other. Political: Coups, governance challenges and weakened democratic institutions. Economic: High debt, trade imbalances and inflation. Demographic: Rapid population growth and migration pressures. Energy: Dependency on fossil fuels limited renewable infrastructure. Technological: Digital divides and under preparedness for disruptive innovations Climate: Extreme weather and dependence on climate-sensitive agriculture.

The report notes that governance instability worsens economic conditions and deters investment. Since 1950, Africa has seen 220 of the world’s 492 coups attempts.

Economic vulnerabilities like high debt levels further undermine stability. In 2023, nearly half of African nations had debt-to-GDP ratios above 60%, with many spending more government revenue on debt interest than on education or health.

Infrastructure gaps in transport, energy, and ICT drive up trade costs 50% above the global average, reducing competitiveness.

Energy insecurity compounds risks. Less than half of Africans have reliable electricity access. Closing Africa’s energy gap will require $190 billion annually – about 6% of GDP.

When it comes to climate change induced vulnerabilities, Africa suffers the most. Climate-related risks, especially in agriculture – a lifeline for millions – further deepen vulnerabilities. In 2022, climate hazards affected over 110 million Africans and caused an estimated $8.5 billion in damages.

The report calls for export diversification, debt management and targeted investments in infrastructure to drive growth and shield economies from future shocks.

According to ECA Report for 2023, in North Africa, it is estimated that water scarcity could affect up to 71% of GDP and 61% of the population, compared to 22% and 36% for the rest of the world. However, alternatives remain: by relying on renewable resources. “We can not only address these challenges but also accelerate sustainable economic development and social development in the region, along with poverty reduction, job creation, and social equity,” Zuzana Brixiova Schwidrowski, Director of the ECA office for North Africa said.

“Food insecurity is unfortunately a structural challenge in Africa, affecting 20% of the continent’s population compared to the global rate of 9.8%. In this context, three imperatives are evident: increasing agricultural and cereal productivity, mobilizing more domestic resources, and expediting the implementation of the African Continental Free Trade Area (AfCFTA), which serves as our cornerstone for poverty reduction and the acceleration of structural transformation,” Ngone Diop, Director of the ECA office for West Africa said.

Despite its limited contribution to global warming, Africa is significantly affected by this phenomenon. Currently, 17 out of the 20 countries most threatened by climate change are located in Africa and climate change already impacts 2 to 9% of national budgets across the continent. According to the latest report from the Intergovernmental Panel on Climate Change (IPCC), North Africa and West Africa are particularly vulnerable with 1.5°C to 3°C expected temperature increases which poses significant threat to populations’ health, productivity and food security.

In response to this situation, African countries have to redirect a growing portion of their public finances towards mitigation efforts and the protection of their populations, thereby depriving themselves of resources needed to finance development, safeguard development gains and implement the Sustainable Development Goals (SDGs).

These constraints underscore Africa’s crucial need to develop innovative growth models capable of preserving and enhancing the well-being of their populations while adapting to climate change and contributing to its slow down.

These models should include appropriate land and water management within the framework of sustainable agriculture, the use of renewable energy to meet national energy demand in a variety of sectors including transportation, industries, heating, cooling, etc., and the establishment of financing models that can address such needs.

Africa has experienced numerous wars and conflicts due to historical, political, economic, and social factors. While some conflicts are internal, others involve regional and international actors. Some of the causes for these wars and conflicts include political factors like Weak Governance & Corruption: Many African nations struggle with governance issues, leading to instability, Power Struggles & Dictatorships: Political elites often manipulate elections, refuse to step down, or oppress opposition, Border Disputes: Many African borders were drawn by colonial powers, leading to territorial conflicts.

Attempts to control natural resources of Africa like diamonds, minerals, fertile land fuels in DRC and Sudan for instance has plunged these countries in constant wars and conflicts. Economic and social factors also push young Africans to join armed groups engaged in the pillage of Africa. Moreover, Ethnic, regional, or religious groups often feel excluded from national wealth and decision-making. Tribal and Ethnic Conflicts: Ethnic divisions, sometimes worsened by colonial policies, still cause clashes. Groups like Boko Haram, Al-Shabaab, and ISIS-affiliates exploit religious differences.

Ongoing conflicts and wars in the northern part of Ethiopia, Sudan since 2023 between SAF and the government, conflicts in DRC, Somalia and Nigeria with Boko Haram; pervious conflicts in Rwanda, civil wars in Liberia and Sierra Leone, South Sudan all resulted in displacement. Economic devastation and the proliferation of multiple terrorist groups has provided an inlet for foreign powers to push for their national interest by using Africa as their cheap raw material resources for their economic development while Africa remained port and recipient of aid from western countries.

What can African countries do to avert the impending catastrophes and prepare the ground for peace, stability and peaceful development? The author would like to suggest several options.

Peace building and stability is an urgent and top priority for African as the member states of the AU. In this context AU Peace and Security Commission has a greater role to play. Governments across Africa need to adopt a practical and applicable peace strategy in an inclusive manner in their respective countries.

All regional and national institutions in the continent need to mainstream the issue of peace in their development programs. They need to push for dialogue and negotiations for peace in cooperation with concerned UN agencies and partner governments. Leaders and political parties in Africa need to join hands and fully commit themselves for ensuring peace at all costs.

African countries need to adhere to Agenda 2063 and develop national economic and fiscal plans that could help them generate local financial resources to gradually phase out from foreign financial and material support. Africans need to work on their own regional and continental economic integration programs and share resources and experience on economic development programs. This must be supported by developing climate change resilient economies and greening Africa in each country. Many African countries can learn from experiences in Ethiopia in this respect.

Economic diversification is needed instead of depending only on monoculture economy to reduce African vulnerability on few commodities in the world market. African countries should also develop intra-Africa trade through AfCFTA and other regional economic free trade areas. It is also important to invest on renewable energy resources by using river basin resources like the Nile Basin.

African economies need to be digitalized to fight against corruption and financial embezzlement and to compete on the world market in an effective manner.

African countries need to develop a comprehensive and applicable plan to use African resources by adding value and not just exporting raw materials. Key and rare minerals like diamond, gold, uranium and others could be used to upgrade exchange rates against Dollar.

Each African country can establish disaster mitigation fund to address the needs of vulnerable populations in case of climate change induced drought and other natural calamities.

The AU and other African institutions like peace keeping missions need to generate their own resources instead of depending on foreign aid from western countries and the UN agencies.

African countries need to work together on promoting education, health services, gender and development, infrastructure development, energy and promotion of food security in each country.

The author thinks that AU must organize an extraordinary meeting of executives and leaders of African states to discuss and pass applicable solutions on the above issues. Africa cannot engage in sustainable socio-economic development by spoon feeding.

Editor’s Note: The views entertained in this article do not necessarily reflect the stance of The Ethiopian Herald

BY SOLOMON DIBABA

THE ETHIOPIAN HERALD WEDNESDAY 26 MARCH 2025

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