Africa must improve resource management and invest in human capital to rebuild after Covid-19
Africa can rebuild itself after the Covid-19 pandemic by pushing through urgent reforms that tackle illicit cash outflows, improve the management of indigenous resources and invest in human capital, economic policymakers said on Thursday at the conference. the 2021 African Economic Conference (ACS).
âIt’s up to African leaders to build strong institutions that will stop illicit cash outflows and money laundering. Africa’s money must primarily serve the African continent. This is the best way to help finance the African continent in the wake of the pandemic, âCape Verde Deputy Prime Minister and Finance Minister Olavo Correia said during a ministerial dialogue on leadership.
The 16th edition of the African Economic Conference takes place in a hybrid format, with key delegates meeting on the island of Sal in Cape Verde as well as virtually. It brings together a wide range of stakeholders, including policy makers, development institutions, the private sector and researchers, to discuss ways to sustainably develop the continent’s sources of development finance.
The African Development Bank estimates that African governments need additional funding of around $ 484.6 billion over the next three years to close the funding gap and emerge more resilient from the Covid-19 crisis.
He backed calls for debt renegotiation to alleviate the devastating impact of the pandemic on developing countries. He cited the Cape Verdean economy’s dependence on migrant remittances and services such as tourism, noting that 60% of the country’s tax revenue goes to debt service. âWe cannot have an economy that only works to pay off its debts,â he said.
Solutions should go beyond debt relief. âGovernments must also be rational in their public spending and be accountable to the people for every dollar spent,â Correia added.
Nicolas Kazadi, Minister of Finance of the Democratic Republic of Congo, called for more investment in human capital to create sustainable wealth. He said Africa must use the experience of the Covid-19 crisis to revive economic growth, working with the private sector and development partners. âWe need to empower the private sector to take action and reduce poverty. The public sector must act as a catalyst.