Cardoso, Okonjo-Iweala, Push for Sustainable Economic Development

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said 41 African countries are set for stronger economic growth in 2024.

Mr Edun, who doubles as the Chairperson of the African Caucus, said this on Friday at the 2024 African Caucus Meeting in Abuja.

The African Caucus was established in 1963 to strengthen the voice of African Governors in the International Monetary Fund/World Bank Group.

The theme of this year’s meeting is “Facilitating intra-African trade: Catalyst for sustainable economic growth in Africa.

The News Agency of Nigeria reports that Mr Edun projected growth of up to 3.8 per cent from about 3.4 per cent in 2022, and rising to 4.3 per cent in 2025.

He stated, “These exceed the global average of about 3.2 per cent.’’

In his remarks, the Governor of the Central Bank of Nigeria, Yemi Cardoso, said that Africa stood at a crossroads with unprecedented opportunities for development alongside significant challenges.

According to Mr Cardoso, to navigate the complex landscape and set the continent on the path of sustainable economic growth, the country must leverage the support of our global partners.

He said, “In the past few months, the CBN has embarked on bold reforms to return to the path of monetary policy orthodoxy as well as remove observed distortions in the foreign exchange market. Our efforts have brought some significant outcomes as volatility in the foreign exchange market has reduced measurably and our inflows have also increased significantly. Interbank market activities have deepened while rates have begun to converge around the standing facilities ban.’’

He said that while challenges remained, the direction of travel was clearly positive, adding that the challenges in the operating environment presented significant hurdles.

“It is crucial that monetary and fiscal policies provide robust responses to mitigate the risks of rising inflation and the lingering effects of adverse supply shocks, which have significantly impacted our economies. I encourage us to share insights on our respective country experiences, working together in the spirit of unity that defines our continent. As we reflect on these issues, let us commit to a deeper understanding of these challenges and collaborate effectively to address them,” he said.

The African Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, Ambassador Albert Muchanga, highlighted the importance of domestic resource mobilisation.

“We must see the African market as a viable channel for domestic resource mobilisation to address the issue of the continent’s sustenance,” he said.

Speaking virtually, the Director-General of the World Trade Organisation, Dr Ngozi Okonjo-Iweala, emphasised the need for greater regional integration.

Mrs Okonjo-Iweala said that trade within the continent and with the rest of the world had a crucial role to play in accelerating sustainable economic growth across Africa.

According to her, the global economic context is difficult.

“Many African countries are struggling to cope with tight financing, high borrowing cost and debt pressure. More trade and value addition are necessary to create the better jobs that our young people need. According to UN data for 2021, only 13 per cent of Africa’s goods trade is internal, compared to 21 per cent for Southeast Asia, 39 per cent for the U.S Mexico, and Canada, and 60 per cent for Europe,” she said.

The Deputy Secretary-General of the United Nations, Amina Mohammed, called for trade facilitation, a pan-African payment and settlement system, as well as increased access to energy and connectivity.