President Bola Tinubu declared on Friday that his administration is undertaking bold economic policies to propel Nigeria’s economy out of the downturns occasioned by multiple shocks in the global economy.
He also called for global cooperation among African countries to tackle their shared economic challenges and seize opportunities.
Speaking at the opening of the 2024 African Caucus Meeting in Abuja, President Tinubu said, “As a government, we have initiated bold economic reforms aimed at steering our economy away from the downturns caused by multiple shocks in the global economy toward a path of recovery and resilience through significant economic transformation. Our reform efforts have been strategically focused on fostering fiscal and monetary efficiency, driving sustained long-term economic growth, and catalyzing job creation in alignment with the SDGs’ priorities. We remain committed to optimizing our economic potential, delivering favorable outcomes for our citizens, and ensuring the overall sustainable development of the regional economy. Our efforts are yielding positive results, with improved macroeconomic stability and increased investment.”
Despite Africa grappling with numerous challenges across economic, humanitarian, and social spheres, President Tinubu emphasized that countries on the continent must take necessary measures to translate opportunities in natural resources and human capital into growth, innovation, and collaboration.
Represented by his deputy, Vice President Kashim Shettima, Tinubu highlighted the African Caucus Meeting as an opportunity to brainstorm on the major challenges and strategies for fostering inclusive growth and sustainable development in Africa.
The African Caucus, established in 1963 to strengthen the voice of African Governors in the Bretton Woods Institutions (BWIs), is chaired by Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun. It meets twice annually, first in the host country of the Chairperson of the Caucus and secondly at the venue of the Annual Meetings of the IMF and WBG. This year’s meeting, themed “Facilitating Intra-African Trade: Catalyst for Sustainable Economic Growth in Africa,” reflects the collective commitment of member countries to advancing the continent economically.
Delivering the President’s address titled “A Shared Vision for Africa’s Growth,” Vice President Shettima outlined ongoing efforts by Nigeria’s administration to address global economic challenges. He urged African countries to improve the quality of life for their people by ensuring that democracy, good governance, and economic institutions work together.
President Tinubu called for enhanced international tax cooperation to combat illicit financial flows and ensure that multinationals contribute fairly to African economies. He said, “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. However, 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.”
Describing the caucus meeting as a vital platform to share experiences, forge partnerships, and chart a collective path forward, Tinubu remarked, “Africa’s story is one of resilience, creativity, and hope. Indeed, we have made significant strides in recent years, with many of our nations achieving remarkable economic growth, social progress, and political stability. Yet, obstacles such as increasing poverty, rising debt across many countries, inequality, and conflicts continue to widen the gap between our continent and the 2030 Agenda for Sustainable Development Goals. This is a matter of serious concern.”
In his welcome address, Chairperson of the Caucus and Nigeria’s Minister of Finance, Wale Edun, noted that 41 African countries are set for stronger growth, predicting an increase from about 3.4% in 2022 to 4.3% in 2025, exceeding the global average of about 3.2%.
Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, emphasized the significance of the meeting, noting that 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.”
African Union Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals, Ambassador Albert Muchanga, highlighted the importance of domestic resource mobilization. “We must see the African market as a viable channel for domestic resource mobilization to address the issue of the continent’s sustenance,” he noted.
Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, provided a comprehensive analysis of Africa’s economic situation and potential. She emphasized the need for greater regional integration, pointing out that only 13% of Africa’s goods trade was internal, compared to higher percentages in other regions.
Deputy Secretary-General of the United Nations, Amina Mohammed, stressed the importance of trade facilitation, a Pan-African payment and settlement system, and increased access to energy and connectivity. She also addressed the challenges of public investment, noting that “last year, an extraordinary 48% of government revenue in sub-Saharan Africa alone went to meeting debt payments.”
Prime Minister of Rwanda, Dr. Edouard Ngirente, emphasized the transformative potential of the African Continental Free Trade Area (AfCFTA), urging for concrete actions to remove trade barriers, harmonize regulations, and create a truly integrated African market. “With coordinated efforts and unwavering determination, we can unlock the vast potential of intra-African trade and secure a prosperous future for our continent,” he said.
Lord Paul Boateng, a member of the UK House of Lords and keynote speaker, expressed concern that Africa has regressed in diversification and competitiveness over the last 20 years, reducing its resilience to shocks and external volatility. He called for the adoption of technological advancements such as blockchain technology and artificial intelligence to transform trade on the continent.