The ongoing discourse on economic growth, competitiveness, and stability has taken the centre stage in Africa and globally. These three pillars are crucial to understanding the broader economic landscape, especially in light of recent global developments that have exposed vulnerabilities and opportunities within economies. The need for a discussion around these themes is increasingly expedient, given the emerging challenges and opportunities that impact both global and African economies.
The growth dilemma – Stagnation and volatility
The global economy is experiencing uneven growth, with advanced economies struggling with slow growth due to aging populations, declining productivity, and geopolitical tensions. The COVID-19 pandemic has worsened these issues, disrupting supply chains and causing inflation, leading to a slowdown in the global growth rate, which once exceeded 3% annually. Emerging markets, especially those reliant on commodities, have also faced challenges, with varied growth outcomes across regions.
In sub-Saharan Africa, economic performance is highly uneven. West Africa grew by 4.0%, East Africa by 5.1%, while Southern Africa lagged at 2.2%. The continent’s overall growth rate has dropped from 4.8% in 2021 to 3.2% in 2023, raising concerns about sustainable growth. Contributing factors include political instability, external economic shocks, and structural deficiencies that hinder consistent growth across the region.
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A fractured future?
Africa’s regional cohesion and economic integration are threatened by increasing fragmentation, exemplified by Burkina Faso, Mali and Niger’s withdrawal from ECOWAS.
This instability undermines intra-African trade, already low at below 15%, and hampers efforts to address shared challenges like infrastructure deficits. Global geopolitical tensions, including the Russia-Ukraine conflict, exacerbate Africa’s vulnerabilities, potentially reducing GDP by 4% and disrupting key trade routes like the Red Sea and Suez Canal, essential for the continent’s trade and supply chains.
Ensuring fair and sustainable competitiveness
Competitiveness has become central to global economic strategies, with nations focusing on innovation, productivity, and fair competition. In Africa, North Africa has made progress, particularly in Morocco and Egypt, by attracting investment through reforms.
However, Sub-Saharan Africa faces greater challenges, such as weak institutions and limited access to finance, though countries like Rwanda and Kenya are making strides in fostering business-friendly environments and innovation. Despite these efforts, Africa still struggles with implementing fair competition policies. The African Continental Free Trade Area (AfCFTA) aims to boost competitiveness by reducing trade barriers, but its success hinges on addressing infrastructure deficits, governance issues, and workforce skills.
In light of these challenges, the 30th Nigerian Economic Summit (NES 30) has been designed to generate conversation amongst regional and global leaders to address the following subthemes—Fostering inclusive development, unleashing business dynamism, building a more secure society, igniting innovation and digital evolution, and promoting stakeholder collaboration.
Bridging the divide
Stakeholder collaboration in Nigeria, as in many other African countries, is increasingly recognised as a critical driver for national development.
The Nigerian government, alongside various stakeholders, is making concerted efforts to foster collaboration across different segments of society, yet significant hurdles remain.
The withdrawal of three countries from the Economic Community of West African States (ECOWAS) underscores the challenges of collaboration within its regional blocs while the gap between leaders and the citizenry also remains a significant barrier to effective stakeholder collaboration. This division is manifested in the frequent protests, riots, and demonstrations that have become a regular occurrence across the country.
These events highlight the pressing need for more inclusive governance practices that genuinely consider and address the concerns of all stakeholders, including marginalised communities, civil society, and the private sector.
Despite challenges, Nigeria’s Open Government Partnership (OGP) promotes transparency, citizen empowerment and anti-corruption measures. A digital platform under the Office of the Secretary to the Government of the Federation (OSGF) allows budget monitoring, while the Nigeria Digital Identification for Development (ID4D) project enhances citizen inclusion and participation in governance through digital identification.
Leading Practice/ Case Study – The World Economic Forum (WEF)
The use of forums for discussion, dialogue, and action on global matters dates as far back as the early 19th century. These platforms facilitate engagement from various stakeholder groups in business, politics, academia, and other fields, in a collaborative manner towards a common objective. The World Economic Forum (WEF) has been at the forefront engaging stakeholders in business, politics, academia and others in society to shape global, regional and industry agendas. The Forum was established in 1971 as a not-for-profit foundation to foster dialogue to drive positive change.
WEF supports about 30 countries through a ‘Global Alliance for Trade Facilitation’ which enables small businesses with easier access to international markets. The trade facilitation delivered by the alliance lowers the time and cost of trade, helping to make businesses and countries more competitive, driving economic growth, creating jobs and ultimately reducing poverty. For example, advocated the adoption of the International Plant Protection Convention ePhyto Solution in Ecuador 2022, which is projected to save the country about US$6.2 million a year in Agri-production. The Forum also organises meetings to convene global leaders, head of industries to address key global and regional issues ranging from economic trends to climate change, technology, and social challenges.
Reflections
In examining the stakeholder collaboration in context, it is useful to identify “enablers” and positive factors to promote stakeholder collaboration. As we look to the future, several critical questions emerge in promoting effective stakeholder collaboration.
- What strategic measures and regulatory reforms are necessary to facilitate seamless collaboration among stakeholders in Africa across critical sectors such as infrastructure and economic growth?
- How can trust-based platforms and continuous engagement mechanisms be established to foster ongoing dialogue and cooperation among diverse stakeholders, including public-private partnerships?
- What cross-regional collaboration mechanisms and monitoring frameworks can be implemented to enhance resource sharing, expertise, and ensure the effectiveness of stakeholder collaboration efforts?
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