Check against Delivery
AFRICAN ECONOMIC CONFERENCE 2024
Theme:
Securing Africa’s Economic Future Amidst Rising Uncertainty
Statement
By
Mr. Claver Gatete
United Nations Under-Secretary-General and
Executive Secretary of ECA
Gaborone, Botswana
23 November 2024
The President of Botswana, Advocate Duma Gideon Boko,
Honourable Dr. Phenyo Butale, Minister of International Relations, Republic of Botswana,
Ms. Ahunna Eziakonwa, Assistant Secretary-General and Director of UNDP Africa Bureau,
Prof. Kevin Urama, Chief Economist and Vice-President, African Development Bank Group (AfDB),
Distinguished Delegates:
Let me start by congratulating you, Mr President, on your election as the President of the Republic of Botswana. We look forward to working with you and your Government to deliver your vision for the people of Botswana.
Mr President,
Excellencies,
Distinguished delegates,
It is an honour to address you today as we convene for the 2024 African Economic Conference under the crucial theme of “Securing Africa’s Economic Future Amidst Rising Uncertainty.”
I would also like to extend appreciation to the Government and people of Botswana for hosting us in this vibrant city of Gaborone, as we meet to discuss the challenges and opportunities confronting our continent.
Sixty years ago, in a newly independent Africa, the challenges of our leaders were decolonization and unification.
But in our time today, our challenges, which are pressing, are climate effects, unsustainable debt burdens, systemic inequalities and global financial imbalances.
Mr President,
Excellencies,
Distinguished Delegates,
The stakes are indeed high for Africa.
Annual losses from climate disasters alone range between US$290 billion and US$440 billion, while the financing gap for Africa’s Sustainable Development Goals (SDGs) has surged to US$1.3 trillion annually.
Compounding this, Africa’s external debt surpassed $1 trillion in 2023, with unsustainable interest payments restricting development financing.
The human cost is equally staggering: nearly 476 million Africans live in poverty today, with 149 million falling into this bracket recently due to cascading climate and economic shocks.
Yet, despite these trials, Africa possesses enormous potential.
Our continent is endowed with 60% of the world’s solar resources, although close to 600 million Africans still lack access to electricity.
Africa is also home to vast critical mineral reserves which are essential for the global transition to a green economy.
And, most significantly, Africa boasts the youngest population in the world, with nearly 70% of its people under the age of 30.
These realities underscore a pressing truth – the global financial and economic system, as it stands, is failing Africa.
Without bold reforms and decisive action, Africa’s dream of achieving the 17 SDGs by 2030 and the AU Agenda 2063 risk becoming an illusion.
Mr President,
Excellencies,
Distinguished delegates,
It is to this end that I propose five interlinked considerations to guide our collective efforts to secure Africa’s economic future.
The first is the reform of the global financial system which is simply unfit for purpose.
The current structure where Africa is marginalized in decision-making, trapped by unsustainable debt structures, and underserved by climate finance mechanisms, must be addressed.
We must urgently push for a global financial architecture that prioritizes SDG financing, climate adaptation and equitable growth.
We must also scale up domestic resource mobilization and expand concessional finance with innovative instruments like green bonds, blue bonds and sustainability-linked bonds to ensure Africa’s resilience and financial sovereignty.
The second involves transforming Africa’s tax systems.
Africa’s tax-to-GDP ratio, at 15.6%, is far below the global average.
Increasing this by even a few percentage points could generate billions in revenue.
We must modernize our tax systems, broaden our tax bases to include the informal sector, harness digital technologies to ensure efficiency and seal the loopholes for illicit financial flows. We also need to ensure that fiscal incentives for private investors are well targeted.
Third, Africa’s future lies in its ability to transform resources into value-added products.
It is therefore critical that we build regional value chains across key sectors.
With 94 value chains identified in 23 sectors across an estimated 240 Special Economic Zones, there is no reason why Africa cannot be successful in this endeavour.
We already have successful models right here on the continent for other African countries to replicate such as Botswana’s beef industry, Ethiopia’s leather production and Ghana and Côte d’Ivoire’s cocoa sectors.
Scaling up climate-resilient agriculture will ensure food security and reduce reliance on imports.
Furthermore, Africa can leverage its critical mineral industries, as envisaged in the DRC and Zambia’s battery and electric vehicle initiative, and lead in green technologies.
Imagine the transformative potential of scaling Africa’s value chains.
In addition, Africa’s renewable energy capacity, which is currently at less than 10% utilization must be unlocked to power its industries and households.
As we build these value chains, we will be able to secure livelihoods, create jobs and position Africa as a global economic force.
Fourth, to move beyond dependency on aid, Africa must become a magnet for private investment.
This requires the de-risking of our investment environment.
Through strengthened governance, transparent systems and innovative insurance mechanisms, we can mitigate investor risks.
For example, South Africa’s pharmaceutical industry and Rwanda’s vaccine manufacturing facility demonstrate the power of local value creation in attracting global partnerships.
We must endeavour to replicate such successes across sectors and regions on the continent.
Finally, the African Continental Free Trade Area (AfCFTA) is the crown jewel of our economic integration efforts.
We must therefore fast-track its implementation.
However, we must remember that we cannot have integration without the seamless movement of people, goods and services.
In this respect, Botswana’s visa-free policies, alongside those of Rwanda and Ghana, exemplify how we can remove barriers to greater intra-African collaboration.
Mr President,
Excellencies,
Distinguished Delegates,
We must not forget that our greatest asset remains our youth.
Nearly 70% of Africa’s population is under the age of 30.
They are the innovators, entrepreneurs and leaders who will shape our future.
The Pact for the Future that we recently adopted commits us to create opportunities for our young people.
This requires that we expand access to education, technology and jobs, and ensure that Africa’s youth drive Africa’s transformation.
And we cannot disappoint them.
Mr President,
Excellencies,
Distinguished delegates,
As I conclude, I would like to emphasize that Africa’s resilience, huge resources and the innovative capacity of its youth can and should put us in a ‘once in a lifetime’ position to lead a new era of global progress.
And the ECA stands ready to work with you to build an Africa that is self-reliant and prosperous for us and generations to come.
Thank you.