Africa cannot afford to become complacent

THE SENTIMENT following last month’s African Development Bank annual meeting in Kigali, and the upcoming ‘Africa Rising’ International Monetary Fund meeting in Maputo, is very positive. Africa has made huge strides over the last decade and stands better placed for continued growth over the next decade. While this is by and large correct, this is not the time for us to become complacent or rest on our laurels. African achievements According to Deloitte, by 2060, Africa’s middle class will have grown to 1.1 billion people or 42% of the population. This is a population with between $2 and $20 per day to spend (important to not confuse this with income). This number alone bodes well for the continent as this population brings political stability, spurs more growth, and is able to pay taxes to increase national revenue. Over the last decade alone, Sub-Saharan Africa has grown by over 5% over the last decade and has consistently grown faster than developed nations during the same period. Even during the global recession that started in 2007, Africa has been able to continue to grow and weather the storm. In Rwanda alone, one million people were able to lift themselves out of poverty in the last five years and the economy’s growth has averaged over 8% a year for over a decade, according to the IMF. Similarly, nations like Ghana have reaped the benefits of growth and have become middle-income countries. The Economist points out that, with 600 million mobile phone users, Africa has more mobile phone users than both the United States and Europe. But Africans cannot be complacent. According to USAID, in Rwanda, 44% live below the poverty line, in Ethiopia over 5 million people are food insecure, and in Ghana and Tanzania enrolment in last years of the education system is only 1.9%. Development is a work in progress and low literacy levels in the United States show that even developed nations haven’t mastered this. African leaders, which are for the most part committed to achieving the best results for their populations, must continue to pursue aggressive development agendas and innovative services to reach their people. Africans are in the best place to make decisions regarding their future and an unbridled focus on developing should be an unending goal. Far too many African nations have depended on growth in large emerging markets such as China. China’s unrelenting demand of commodities has driven up prices and made commodity exporting many nations’ primary revenue source. Overall, most nations have used these funds wisely and invested in their people but depending on these streams of revenue is not wise. Analysts have pointed out that China’s economy’s growth is going to slow and the continent should prepare for this. Nations that depend solely on the exploitation of natural resources can fall victim to the dreaded ‘Dutch disease’, where focus ceases to be on services, manufacturing, and agriculture. A diversified economy is key to sustained growth. Nations dependent on one major revenue source are also exposed to price shocks in international markets for that commodity and that can quickly cripple an economy. Innovate African leaders need to remain focused on innovating. Africa is the continent of Ubuntu, M-Pesa, and Gir’inka. These homegrown solutions are more apt at fixing Africa’s problems then remedies from outside. Allowing market forces to meet consumer needs means lower regulation, a conducivebusiness environment, and a skilled workforce. Allowing Africans to solve Africa’s problems is not only the imperative of local leaders but also international actors who should learn to stay out of the way more often. One hungry mouth is one of many and, while the continent has much to be proud of, this reality should be at the forefront of everyone’s mind. This being said, the capacity of Africans to create and innovate is observable throughout the continent. This should be the imperative for the next decade – we have done well but we will never rest, we will never cease to innovate, we will never to cease to revolutionize our thinking, we will never stop developing. The writer is a Rwandan economist based in Copenhagen Twitter: @adamkyam