Afro-Economics: The Solution To Sustainable Economic Growth In Africa -By Dovish Okojie

The term Afro-economics is a combination of two words, ‘Afrocentric’ and ‘Economics’. Afro-economics is based on the idea that Africa has a unique history, culture and economic potential that requires a different approach to economic development than the one prescribed by mainstream economic theories and policies. It is an economic philosophy that seeks to address the unique challenges facing African economies and emphasizes the need to leverage Africa’s vast natural resources, human capital and cultural heritage for the economic development and empowerment of the people and nations on the African continent. Afro-economics is grounded in the principles of social justice, equity, inclusivity and seeks to create an economic system that promotes regional integration. It also recognizes the interrelatedness of global economies by building mutually beneficial relationships that promote trade, investment and technology transfer.

Africa is blessed with human capital and abundant natural resources like minerals, arable land and water resources. African economies have not been able to fully leverage these resources due to factors such as poor governance, weak institutions and inadequate infrastructure. The current economic systems and models in place have not been able to fully address the unique challenges and opportunities of the African continent. This is where Afro-economics comes in as a necessary solution to promote sustainable economic growth and development in Africa. One of the key tenets of Afro-economics is the recognition of the importance of local knowledge and expertise in developing sustainable solutions. Most African economies are characterized by a large and vibrant informal sector which includes small businesses, street vendors and informal traders.

These local practices and institutions have often been overlooked by traditional economic models, yet they hold significant potential for economic growth and development through job creation and income generation which help to reduce poverty. It is difficult to achieve economies of scale with small and fragmented markets, so regional integration and cooperation can help to create larger and more integrated markets and address the infrastructure deficits that these economies face. Afro-economics will take care of the informal sector in African economies by creating an enabling environment for its growth and development through policies and interventions that promote formalization, access to finance and the development of supportive institutions. Afro-economics recognizes the importance of improving access to finance for SMEs in African economies through the development of financial markets, the expansion of microfinance services and the provision of targeted financial support for SMEs.

Africa has a young and growing population which presents both opportunities and challenges. On one hand, the youthful population presents a potential source of energy, creativity and innovation. On the other hand, the lack of employment opportunities and the skills mismatch can lead to unemployment and underemployment which can undermine economic growth and development. Afro-economics recognizes the need to invest in human capital development including education, health and skills development. This can help to create a skilled and productive workforce that can drive economic growth and development.

African economies are also heavily dependent on natural resources, including agriculture, mining and forestry. The exploitation of these resources can also have negative impacts on the environment and the long-term sustainability of the economy. Afro-economics recognizes the need to promote sustainable development that balances economic growth, resource management and environmental conservation in African economies through policies and interventions that mitigate the impact of climate change and environmental degradation, which have significant economic and social consequences. This will promote sustainable agriculture, forestry and mining practices, as well as the development of renewable energy systems and the promotion of sustainable tourism.

Afro-economics is consistent with the African concept of “Ubuntu”, which emphasizes the interconnectedness of people and the importance of community in achieving sustainable development. It recognizes the need to develop transportation networks, energy infrastructure, access to finance for innovative projects, research and development, good governance, transparency and accountability, effective institutions and communication systems that will connect African economies to facilitate trade, investment and development. The success of the Afro-economics approach will also depend on the ability of African economies to leverage their unique strengths and opportunities, while addressing the challenges and obstacles that stand in the way of sustainable economic growth and development. With the right policies, institutions and partnerships in place, Afro-economics has the potential to transform the economic landscape of Africa and create a more prosperous and sustainable future for the continent.

Some key aspects and sectors Afro-economics aims to bring practical African solutions:

1. Agriculture and Rural Development: Agriculture is a key sector in many African economies, providing livelihoods for a significant portion of the population. Afro-economics will promote sustainable agriculture practices that are tailored to local ecological conditions and traditional knowledge systems. This can include agroforestry, organic farming and crop diversification, which can enhance food security, promote local value chains, and improve rural livelihoods.

2. Informal Economy: The informal economy, which includes activities such as street vending, small-scale trading and artisanal production, is a significant part of African economies. Afro-economics will support the formalization and integration of the informal economy into mainstream economic activities. This can involve providing access to financial services, technical support and legal recognition to informal businesses, which can enhance their productivity, competitiveness and contribution to the overall economy.

3. Women and Youth Empowerment: Women and youth represent a significant portion of the African population and have untapped potential as economic agents. Afro-economics will prioritize gender and youth empowerment by promoting gender equality, providing access to education and skills training, and creating opportunities for entrepreneurship and leadership. This can enable women and youth to participate fully in economic activities, contribute to economic growth and achieve sustainable development.

4. Manufacturing industry: Afro-economics will prioritize the development and implementation of comprehensive industrial policies that provide a strategic roadmap for the growth of the manufacturing sector and these include tariff protection, tax incentives and targeted support for key industries. Investment in skills development programs that provide training and education to enhance the technical and managerial capabilities of the local workforce. Access to finance for the manufacturing sector through venture capital funds, loan guarantees and credit facilities that support the establishment and growth of manufacturing businesses is also key and essential for the growth of the sector and this can create new export markets for African manufacturers.

5. Infrastructure Development: Adequate infrastructure, such as transportation, energy, water and telecommunications, is essential for economic development. Afro-economics will prioritize infrastructure development, particularly in rural and marginalized areas, to facilitate trade, investment and connectivity. This can involve developing transportation networks, expanding access to modern energy services, improving water and sanitation facilities, and promoting digital connectivity.

6. Innovation and Technology: Afro-economics will foster innovation and technology adoption to address pressing societal challenges. This can include promoting local research and development, supporting technology transfer and building technological capacity through education and skills development. Additionally, Afro-economics can encourage the use of digital technologies for financial inclusion, e-commerce and e-governance, which can enhance efficiency and transparency in economic activities.

7. Renewable Energy: Access to reliable and affordable energy is crucial for economic development. Afro-economics will prioritize renewable energy sources such as solar, wind and hydropower, which are abundant in many African countries. This can help reduce dependence on fossil fuels, promote energy security and create new opportunities for green jobs and entrepreneurship.

8. Cultural Industries: Africa has a rich cultural heritage that can be leveraged for economic development. Afro-economics will promote the development of cultural industries such as arts, crafts, music and tourism, which can generate income and employment opportunities while preserving cultural diversity. This can involve investing in cultural infrastructure, promoting cultural entrepreneurship and creating favorable policies that protect and promote African cultural expressions.

9. Sustainable Natural Resource Management: Africa is rich in natural resources, including minerals, forests and wildlife. Afro-economics will promote sustainable natural resource management practices that balance economic development with environmental conservation. This can involve promoting responsible mining, supporting community-based forestry initiatives and promoting wildlife conservation and ecotourism. Sustainable natural resource management can create economic opportunities while preserving the ecological integrity of African ecosystems.

In conclusion, Afro-economics will address the specific structural needs and challenges that have hindered economic development in Africa. It emphasizes the importance of African countries promoting local content through domestic manufacturing, processing of raw materials and value addition. It also highlights the need for the development of regional value chains through Infrastructural development, strengthening of human capacity and institutions, research and innovation, investments in key sectors, building strong public-private partnerships, economic diversification and Intra-African trade. Achieving all these will require sustained political will, adequate financing and a long-term commitment to sustainable development. By adopting Afro-Economics, African countries can reduce poverty, achieve economic prosperity and stability that is relevant and sustainable for the continent and improve the standard of living for millions of people across Africa. An African solution is required to solve African problems and Afro-economics is the solution for sustainable economic growth and development in Africa.

Dovish Okojie is a Management Consultant and Public Affairs Commentator. He writes from Abuja and can be reached on dovishokojie@gmail.com