Tinubu urges African unity for economic growth

President Bola Ahmed Tinubu has called on African countries to improve the quality of life across the continent by ensuring that democracy, good governance, and robust economic institutions work together.

Speaking at the 2024 African Caucus Meeting in Abuja, President Tinubu who was represented by Vice President Kashim Shettima emphasised the importance of self-reliance in development efforts.

“We must also acknowledge the need to take responsibility for our own development by undertaking the difficult structural and fiscal reforms required to boost long-term growth and enable reinvestment into our economies through infrastructure and effective social spending,” he stated.

President Tinubu who addressed the delegation of African Central Bank Governors, noted Nigeria’s bold economic policies designed to overcome the downturns caused by multiple global economic shocks. “My administration is currently undertaking bold economic policies to propel Nigeria’s economy out of the downturns occasioned by multiple shocks in the global economy,” he said.

He called for increased global cooperation among African nations to address shared economic challenges and leverage opportunities. Despite Africa’s numerous economic, humanitarian, and social challenges, President Tinubu urged countries to translate their natural resources and human capital into growth, innovation, and collaboration.

The African Caucus Meeting, chaired by Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, provides a platform for African Governors to strengthen their voice in the Bretton Woods Institutions (BWIs). Established in 1963, the Caucus meets twice annually, first in the host country of the chairperson of the Caucus and later at the venue of the Annual Meetings of the IMF and World Bank Group (WBG).

This year’s theme, “Facilitating Intra-African Trade: Catalyst for Sustainable Economic Growth in Africa,” underscores the collective commitment of member countries to drive economic progress.

President Tinubu, in his address titled “A Shared Vision for Africa’s Growth,” outlined Nigeria’s ongoing efforts to address global economic challenges through strategic reforms aimed at fostering fiscal and monetary efficiency, driving sustained economic growth, and creating jobs aligned with the Sustainable Development Goals (SDGs).

“We remain committed to optimizing our economic potential, delivering favorable outcomes for our citizens, and ensuring the overall sustainable development of the regional economy,” President Tinubu said. He also highlighted the need for enhanced international tax cooperation to combat illicit financial flows and ensure multinationals contribute fairly to African economies.

“We need enhanced international tax cooperation to combat illicit financial flows and ensure that multinationals contribute fairly to our economies. We must also foster global economic cooperation to tackle shared challenges and leverage opportunities,” he added.

In his welcome address, the host and Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, noted that 41 African countries are projected to experience stronger growth, up to 3.8 percent from 3.4 percent in 2022, rising to 4.3 percent in 2025, exceeding the global average of about 3.2 percent.

He added that Africa’s demographics present tremendous potentials that should be explored.

He stated that the African Caucus meeting will focus on strengthening the pan African payment system digitalisation, revenue mobilisation and more with a focus on charting a common way for the continent. Edun said the resolutions from the meeting would be communicated to the heads of IMF and World Bank ahead of the October annual spring meetings.

Central Bank of Nigeria Governor, Mr. Olayemi Cardoso, emphasised the significance of leveraging global partnerships to navigate Africa’s complex economic landscape. “Africa stands at a crossroads with unprecedented opportunities for development alongside significant challenges. To navigate this complex landscape and set the continent on the path of sustainable economic growth, we must leverage the support of our global partners,” he added.

African Union Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals, Ambassador Albert Muchanga, emphasised the importance of domestic resource mobilization. “We must see the African market as a viable channel for domestic resource mobilisation to address the issue of the continent’s sustenance,” he noted.

Speaking virtually, WTO Director-General, Dr. Ngozi Okonjo-Iweala, provided a comprehensive analysis of Africa’s economic situation and potential, emphasising the need for greater regional integration. “According to UN data for 2021, only 13 percent of Africa’s goods trade was internal, compared to 21 percent for Southeast Asia, 39 percent for the US, Mexico, and Canada, and 60 percent for Europe,” she said.

Deputy Secretary-General of the United Nations, Amina J. Mohammed, underscored the importance of trade facilitation, a Pan-African payment and settlement system, and increased access to energy and connectivity. She highlighted the significant challenge of public investment, with 48% of government revenue in sub-Saharan Africa going to debt payments last year.

Rwanda’s Prime Minister, Dr Edouard Ngirente, called for concrete actions to remove trade barriers and create an integrated African market.

Lord Paul Boateng, a member of the UK House of Lords and keynote speaker at the event, expressed concern over Africa’s decline in diversification and competitiveness over the past 20 years. He emphasized the need for African countries to adopt technological innovations such as blockchain and artificial intelligence to transform trade on the continent