Africa should listen to conversation on reducing poverty
What you need to know:
While the world is discussing globalisation, African leaders are yet to overcome their mistrust and develop stronger regional integration bodies.
The integration of the East African Community suffers from leaders who are inward-looking and reluctant to acknowledge the principle of a global village.
This week saw another gathering of the world’s powerful in Davos, Switzerland at the World Economic Forum, which opened on Monday and ended on Friday.
The theme for this year was economic growth and social inclusion. Winnie Byanyima, the Executive Director of Oxfam International, got the ball rolling when she said that eight men own as much wealth as half the population of the world. This prompted leaders at the forum to grapple with the question of creating wealth in a capitalist world while eliminating poverty. In his article on the forum’s agenda, Andrew Liveris, CEO of the Dow chemical company said inclusive capitalism is ultimately about re-embracing the purest purpose of business: Solving problems and improving people’s lives.
The Swiss president, Doris Leuthard, added her voice to the conversation when she said that the forum should come up with strategies to ensure that the sharp divide between the rich and poor does not get larger.
Additionally, Jean Lebel, President of the International Development Research Centre, challenged the world to use ICT to foster inclusion of women in economic growth. Her organisation has partnered with the World Economic Forum to collect data and empower leaders to implement discussions on inclusive growth by providing a data bank on the successes of inclusive strategies.
The global agenda included globalisation, digitisation and the fourth industrial revolution, handling the refugee problem and the role of the US and China in the global economy.
Chinese president Xi Jinping started off the conversation on globalisation during the opening plenary, saying that China is not interested in trade wars but will be keen to focus on cooperation.
GREAT HOPE
On the other hand, Anthony Scaramucci, a member of United States President-elect Donald Trump’s transition team, said that his boss is one of the last great hopes for globalisation. He said Trump’s presidency is good for the world and will not be as dramatic and global community expects.
While the world is discussing globalisation, African leaders are yet to overcome their mistrust and develop stronger regional integration bodies. The integration of the East African Community suffers from leaders who are inward-looking and reluctant to acknowledge the principle of a global village.
African leaders underpinned the importance of energy in economically developing the region. South African Deputy President Cyril Ramaphosa encouraged the private sector to invest in energy projects as this has proved to be effective. Reference was made to strategic partnerships with the US in the Power Africa project and significant projects by china in harnessing energy in Africa.
Leaders felt there was need to invest in clean energy as opposed to fossil fuels.
For all its misfortunes, Africa still enjoys the confidence of investors. Mohammed Dewji, President and CEO, MeTL Group started off the conversation on doing business in Africa by saying 2017 is the continent’s year. He pointed out the four areas of growth for the continent; processing and value addition, fast moving consumer goods, serving the bottom of the pyramid and producing for the export market.
As the curtains fell on the global forum, the biggest take-home statement for the continent in general and the country in particular this year was that of 2013 by Christine Lagarde’s reiterated this year that unequal growth could never be sustainable.
William Odhiambo is chief executive officer, Elim Capital.
