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Open Letter to President Joe Biden

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President Joe Biden © The U.S WhiteHouse 

The Legacy Premier Foundation joins the rest of the world in saluting and congratulating you and the amiable Vice President – Madam Kamala Harris, on your outstanding triumph in being elected the 46th President and Vice President of the United State of America. It was an all-round resounding victory that showcased your fruitful political career over the years. It was also incredible to know about your magnanimity in clinching the presidential seat. How beautiful It is to see one who gives so much get rewarded! You are an icon as you have consistently expressed your genuine thoughts, and the electorate has regarded this honorary virtue.

Reiterating the words of Fashina, et al.(2018), their study revealed evidence of a long relationship among economic growth, foreign aid, human capital and other growth determinants namely; real domestic investment, foreign direct investment and trade openness. It is also evident in the study that among other factors considered responsible for economic growth, foreign direct investment and trade openness appeared the most viable for explaining growth attainment in Nigeria as there were more statistically significant factors. On this account, we would trust that you will keep on offering the truly necessary help; support and aid for Africa-oriented programs. Currently, we need a great deal of help in the advancement of Africa development.

Going down memory lane, since the escalation of World War II, there has been a significant development in Africa’s general foreign exchange. The development contrasts well to that of other continents, for example, Latin America. The estimation of imports, notwithstanding, has exceeded exports bringing about an unfavourable lopsided exchange for most African nations. One way to overturn this is through foreign aid and grants.

Over the years, there has been a huge surge in African commodities by and large, and this can be credited to the increment in the demand for essential commodities during World War II and in the prompt post-war refurbishment period. Thus, the fulfilment of independence by most African nations, particularly in the mid-1960s was trailed by an offer for economic development that is fortified by the export-expansion drive.

Another wholesome reason for the rather slow growth in African exports is the perseverance of the present circumstance that has been essential for the explanation of the economies of numerous African countries.

To salvage this, the African Union has launched the operational phase of the Africa Continental Trade Area (AfCFTA), which could become the world’s largest trade area, going by number of participating nations, once it’s fully operational. Nigeria is on the verge of developing a national AfCFTA strategy. In Nigeria today, we have the road, maritime and air transport options well utilised, but the railways would have an edge over the others when the trading bloc starts operations because of its relatively lower costs. Nigeria therefore is positioning itself to take very good advantage of these policies to come.

After years of talks, the end goal is to determine one marketplace for goods and services across the 54 African countries, allowing the free movement of business travelers and investments, and making a continental union to streamline trade; which thereby attracts long-term investment.

There is also the “African Growth and Opportunity Act,” (AGOA) which has been the foundation of U.S. monetary commitment in the last twenty years, with the nations of Sub-Saharan Africa and has assisted with expanding two-path exchange between the U.S. and Sub-Saharan Africa.

AGOA builds on existing US trade programs by expanding the (duty-free) benefits previously available only under the country’s Generalised System of Preferences (GSP) program. Duty-free access to the U.S. market under the combined AGOA/GSP program stands at approximately 6,500 product tariff lines, including the tariff lines that were added by the AGOA legislation. Notably, these newly added “AGOA products” include items such as apparel and footwear, wine, certain motor vehicle components, a variety of agricultural products, chemicals, steel and many others.

In conclusion, we see that the agreement will expire by 2025, but we want to see to it that this applaudable act is extended further to help bolster economic development in the whole of the Africa continent.

For this, we humbly request for aids and policies targeted towards trade openness, laxity on stringent policies against migration and support on democratic practice that will enhance human capital and socioeconomic development on the continent. We also offer you our wholehearted partnership in your future works, and we expect your tenure achievement to be all-encompassing and all-reaching.

This wouldn’t just imbue more credibility to your governance, it will be a far-reaching policy towards igniting hope in the heart of the African populace.

We look forward to meaningful collaborations through our organization, Legacy Premier Foundation – a global intergenerational non-profit organization committed to empowering and developing underserved communities through human capital and socio-economic empowerment.

We remain open to a meet and greet opportunity with your team.

God bless the President
God Bless Madam Vice President
God bless the United States of America

Signed: Dr Remi Duyile, Legacy Premier Foundation Management

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Africa speaks

Tapping into African Diaspora

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By: Nchimunya Muvwende (Photo: ADN)

In a famous quote, an author penned down the words “No matter where you go, always remember the road that will lead you home.” There are many Africans that left their countries in search of green pastures in the diaspora but it seems that they have become so comfortable with developing the already advanced countries and do not seem to remember their roots. While foreign investors are rushing to invest in the opportunities present in Africa, very few foreign based Africans do the same but rather focus on helping family members through remittances that have no sustainable impact. This status quo is not helpful and there is a need to harness a working relationship between nations and their people that live abroad in order to have inclusive development.

Harnessing diaspora resources

Many African countries are highly indebted and much of this debt arises from the ambitious development projects that governments are undertaking to improve the livelihoods of their people. Most projects cost more money than countries can manage to mobilize domestically and so, the countries are forced to depend on external aid and loans that are sometimes tied to adverse conditions.

On the flip side, there are many diaspora based Africans who have raised enough resources which when invested back in their countries, the rising debt crises could be mitigated. To do this, there is a need to provide specific incentives for the foreign based Africans so as to attract their resources to be invested in their home countries. Doing so will come with many benefits such as reduced dependency on borrowing, money remaining within countries hence stabilizing exchange rates, employment creation, economic growth and basically improved wellbeing of the people. It should be noted that no one will prioritise the development of Africa except its people regardless of where they are based and so, measures need to be taken to engage the children of the African soil.

Nations need to appeal to their people to remember those they left back home and think of ways of improving their livelihoods. It goes without saying that it is important to look strategically, systematically and critically at the diaspora’s role in the African development matrix and engage the huge reservoir of human and financial capital found in the large African diaspora.

Investment not remittances

When you give a child fish, they would still come back for more but if you build them a fish pond, teach them how to earn an income, the dependence syndrome reduces. There are many Africans that are in the diaspora that earn decent incomes and have to always remit funds to their families back home. However, this has created a continued financial dependence that has not necessarily improved livelihoods as it is not a sustainable source of income for the people back home.

The World Bank statistics show that remittances from the diaspora are estimated at about $87 billion annually and these amounts actually exceed official development assistance to Africa. Why always beg for help when Africans in the diaspora have more resources? It is time that the many Africans domiciled across the world begin to think of how they can reinvest their incomes into building businesses that will benefit not only their families but their countries as a whole. When critically analyzing cost factors, it would be cheaper to set up a business in an African country than in western countries.

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This is because the cost of labor, availability of ready market and investment incentives are more pronounced in many African jurisdictions. It should be a source of concern that foreigners find it easier to invest in Africa than it is for the Africans who left the continent for greener pastures to think of taking back the resources to their roots. Imagine if every diaspora based African thought establishing at least one business in their home countries using mobilized resources and using the skills and knowledge gained, the development of Africa will be more pronounced. It is time to convert remittances into Foreign Direct Investments in order to grow African economies and deal with pressing challenges.

Diaspora Network

Most of the western countries have advanced skills and knowledge and attract the best minds around the world, inclusive of the many diaspora based Africans. There is a need to create effective diaspora networks that can help replicate, transfer and build the knowledge to actualize Africa’s potential. There is a need for building capacity in the management of businesses. Financial prudency, sourcing financing among other skills in the people in Africa and this is a role the African diaspora could take up when effectively engaged. In addition, they can help create opportunities for Africans to acquire skills and knowledge from the best schools and experts and use this to develop Africa. The networks could help create market linkages for the many products produced in their home countries.

The abundance of natural resources and wildlife make Africa a good and attractive tourist destination but the lack of effective advertisement and expensive costs have hindered reaping benefits. The African diaspora needs to be engaged more in marketing their home countries, and this could come at almost no cost because word of mouth advertisement is rated the best.

African Governments should not look at the African diaspora as deserters of their continent but rather as ambassadors that could be instrumental in dealing with the many challenges faced in their home countries. This calls for effective engagement with the African diaspora. In the same vein, the African diaspora should be reminded to remember the road that leads to their roots and that if they do not take part in uplifting the lives of their people, financial burdens will keep falling on them. Therefore, working on a win-win situation will be the best way to achieve a prosperous African continent.

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Africa speaks

Presidential Candidates Nigerians should not consider voting for in 2023 – Adaku Efuribe

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Nigerians would be going to the polls in 2023 to elect a new president. I have written a lot of articles in the past regarding qualities of a great leader, but going by the understanding of most Nigerians, it would be more sensible to discuss the character of candidates not suitable for the job to enable us to separate the goat from the sheep so to say.

In solving mathematical equations, we sometimes use elimination methods to arrive at the correct answer. if we all know who we shouldn’t vote for, perhaps we could pinpoint who the possible suitable candidates are.

If we want to improve our economy and place Nigeria in its rightful place in world affairs then we must make conscious effort to ensure people with certain character flaws do not come anywhere close to the office of the president

Nigerians must not consider voting for candidates with the following character flaws/history.

Liars

Some of the candidates who have declared interest have been known to tell false tales to Nigerians in the past. A good example is a notorious fella who once made Nigerians doubt their cognitive ability. A few thought they actually suffered from short term amnesia. I wouldn’t tell you who to vote for but do not vote for liars, especially the one that woke up one morning shouting enough is enough! he went ahead to say he would be staging a protest against the present Government, he talked about a dream he had in which God revealed to him what he must do…Then the next day ..he said he wasn’t referring to this Government.

Treasury Looters

Anyone who has been involved in advance free fraud, misappropriation of public funds or lack of accountability must not be voted for if we want to move forward in this country. A leopard cannot change its spots. To be forewarned is to be forearmed.

People with unaccountable wealth

Any candidate who cannot explain the source of their wealth is not to be trusted. Some people just spring up from nowhere to tell us God made them rich and no one can comprehend their source of wealth. We have had public servants who could not give account of the budget of their former office or keep an open book on how they spent public funds, such people will only continue to loot the treasury if given the opportunity.

Aspirants who do not believe in cutting down the cost of Governance

The GDP in Nigeria has depreciated over the last 8 years and part of the reason why we cannot come out of economic hardship is the cost of Governance. We spend a lot of money on the welfare of elected Government officials and legislators, more than most developed countries. There is definitely something wrong somewhere. Any candidate who does not believe in cutting down the cost of governance will only do one thing i.e.- continue to use public funds to fund their lavish lifestyle while the masses die of hunger and economic hardship.

Aspirants with no proven track record of effective leadership

Anyone who does not have any proven track record of leadership should not dream of becoming Nigeria’s next president. This country has sunk really low and we don’t have to operate anymore experiments. We don’t need the usual ‘I can do’ attitude. It’s either the proven experience is there or not.

Once again, the power would be placed in your hands to redecide the trajectory of our beloved country Nigeria. I intend to vote and my vote must count this time around. I know exactly who I will be voting for as I do not operate with sentiments. For us to see our country rise up again from the dunghill, I enjoin you all to have an open mind and consider the future of this country with any decision you make.

Article by Adaku Efuribe, Health Promotion Ambassador/Political analyst.

 

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World War 3? Africa’s opportunity

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It has often been said that when elephants are fighting, the grass is the one that suffers the most. And this statement is highly applicable to Africa in the ongoing Russia-Ukraine conflict. Whereas the European countries are fighting a physical war, Africa’s fight against economic challenges such as poverty, unemployment, trade deficit and starvation is worsened by the conflict. Barely a fortnight into the conflict, global commodity prices have been on the rise and had adverse effects on import dependent countries. What lessons can African nations pick from the conflict and what low hanging opportunities can be explored? 

Agricultural market

Both Russia and Ukraine are important players in agricultural production, supplying about 30 percent of the world wheat and barley. In 2020 alone, African countries imported agricultural products worth about $6.9 billion from the two countries. However, the conflict has caused a disruption in the global supply chain of agricultural products. Essentially drying up exports as evidenced by the supply ban imposed by Ukraine, resulting in higher prices and stockpiles reducing. The global citizen report estimates that over 500 million people would be forced into hunger because of the food crisis arising from the conflict. There is a supply gap created which will lead to importers to seek alternatives markets. And therein lies the opportunity for African countries to stand out as global suppliers of these agricultural products and fill the gap.

Historically, Africans are farmers who have survived on agricultural production mostly at a micro level. Africa is blessed with arable land and good climatic conditions that support the growth of various products but productivity has remained low over the years. To take advantage of this situation calls for deliberate efforts to direct resources into growing the agricultural products in large quantities and benefit from the sales. To boost productivity faster, farmers could be incentivised through the use of outgrower schemes. Which are systems that link networks of unorganized smallholder farmers with domestic and international buyers. The identified agricultural market requires that both farmers and countries expand their capacities by investing in equipment and modernisation for higher output. The after effects of the crisis are projected to last for extended periods of time but for those countries that will emerge as gap fillers stand to benefit for a long time. 

Trade reorganisation 

While it can be argued that globalisation and trade have been a key driver for growth and economic expansion for many nations, the gains have not been fairly distributed especially in Africa. Intra-Africa trade when compared to external trade accounts for a smaller percentage and hence the observed vulnerability of African trade to external factors. Imagine, while Africa is neither physically involved in the Russia-Ukraine conflict nor imposing any sanctions on these countries. The effects of these two factors in derailing economic progress is worse in most African countries. Oil is a key input in various sectors of economies and the affordability and access to it has an impact on economic growth.

The crude oil prices are daily breaking record prices and for the many oil importing countries especially in Africa are at the receiving end of the spillover effects. Such as high cost of doing business and rising inflation which is detrimental to their economies. It defeats economic logic that African countries import oil from outside the continent, spending huge funds on transportation despite having neighbouring oil producing countries. The oil producing African countries should consider prioritising African nations for their exports to ensure that the continent is oil secure and the economies are thriving. Where possible, a differentiated preferential price which should be lower than the global price should be considered to ensure affordability and support to African nations. 

The implementation of the Africa Continental free trade area, which has been envisioned as a game changer in African trade, has stalled with frequent postponements to actualisation. The current European conflict should be viewed as a catalyst for trade reorganisation in Africa and ACFTA implementation. This is because the crisis has indeed created a gap in trade and there is no guarantee that African nations could be prioritised in importing from the European countries that also have pressing needs. Self-sustenance in intra-Africa trade should be the target because, decades after independence, Africans cannot forever be dependants. Who are vulnerable to external factors which do not directly concern them.

Strategizing opportunity

While the conflict has devastating effects on some countries, it actually creates an opportunity for others. The identification of the comparative advantage that nations have in either current production or potential production is what should preoccupy those not participating in the physical fight. The current capacity in most African countries to manufacture products may not be able to compete with developed countries that have advanced technology. But in terms of primary produce, African nations have huge unexploited potentials. 

Each country should introspect, organise its people and resources in targeting the global market. This is a matter of expanding what is already being produced and organising smaller businesses in bundling their produce. Working out strategies that will see individual countries to be a solution to a looming global crisis and benefit their nations in the process. If the opportunity is well taken and African nations stand out as solution providers, it could be a turning point for them to recover from indebtedness and economic challenges they have perpetually faced.   

The looming crisis could just be a test to examine the capability of developing countries to switch from being dependents to being solution providers. The focus should not be on the current investment costs to be incurred. But rather the benefits that have potential to erase economic challenges when potential is exploited and opportunities seized. 

By: Nchimunya Muvwende, Economist

 

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