Financing Africa’s Sustainable Development

//Financing Africa’s Sustainable Development

BACKGROUND
On September 25, 2015, the 193 member countries of the United Nations adopted a set of 17 Global Goals which they believe will drive the complete transformation as well as the sustained development of our beloved Planet by the year 2030. These 17 Global goals were termed: Sustainable Development Goals (SDGs) and were modeled to address each of the major problems affecting every nation of the world without consideration to their level of development i.e. developed, developing and underdeveloped nations alike. Soon enough, every region and continent taking the SDGs as a blueprint began implementing policies to fast-track the achievement of these Global Goals and Africa did same with the establishment of the Sustainable Development Goals Centre for Africa (SDGC/A) in July, 2016. The main aim behind its establishment was to provide African governments, Civil Societies, Academic Institutions and Businesses with the resources they need to achieve the SDGs in Africa.

PROBLEM STATEMENT
According to data from the World Bank, the combined Gross Domestic Product (GDP) for Sub-Saharan Africa in 2017 was estimated at US$1.5 trillion [2]; however, a report from the SDGC/A estimates that Africa requires an investment of US$2.4 trillion per annum to achieve all 17 Global Goals. [3] Comparing these two data, it is crystal clear that African nations are at a considerable disadvantage towards the financing of positive transformation and sustained development on the continent. This begs a question – how have we found ourselves in such dire straits? How can a continent of about 1.3 billion people [4], have a GDP almost nine times less than that of the United States (US), a country with a population of 326 million people [5]?
In this essay, I will be answering these questions while presenting my solutions to the matters arising for the financing of development and transformation in Africa.

ECONOMIC DIVERSITY
Africa is a continent renowned for her vast riches of Natural Resources. However, over the years, successive African leaders have been entrapped in the snare and comfort these resources bring along with them, leading to an overdependence of the economy of many African Nations on the export of their Natural Resource. This results in the crumbling of other sectors of the economy under the weight of neglect. For example: Nigeria, Gabon, Sudan and Angola are rich in Crude Oil; Guinea is rich in Bauxite; Zambia and D.R. Congo are rich in Copper while Ghana and Mali are rich in Gold. [6] Oil exports as at 2016 accounted for 12% of GDP and over 70% of government revenue in Nigeria [7]; Bauxite accounts for over 50% of exports in Guinea [8]; Copper export accounts for over 20% of D.R. Congo’s GDP [9] while Gold accounts for over 70% of all exports in Mali. [10] The consequence of such extreme dependence on export of extractive minerals is that most African countries have become vulnerable to external economic situations such that once the prices of any of these resources dip, the shockwaves reverberate through the nation’s economy, leading to a sharp decline in revenue. The example of Nigeria slipping into recession in 2016 due to the decrease in oil prices during the OPEC crisis remains fresh in our minds.

2018-08-15T01:12:37+00:00

2 Comments

  1. Anonymous May 23, 2018 at 12:35 am - Reply

    Interesting

  2. dphkgkqfat May 2, 2020 at 4:42 pm - Reply

    Muchas gracias. ?Como puedo iniciar sesion?

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