Prof. Remi Duyile, Founder Legacy Premier Foundation 

As Nigerians are gearing up and campaigning for the 2023 election begins, Business Africa Online asked Prof. Remi Duyile share her thoughts on what this election means to her and why everyone must be involved, why we cannot afford to get it wrong this time around, and advice to the youths. Excerpts.

Her Response:

I held a political role in Nigeria a few years ago, which provided me with a good understanding of the country’s political institutions. As we approach another year in the political chapters of Nigerian history, we must not only look forward with expectations but also reflect on our previous experiences in order to identify and choose the right leaders for our future.

We’ve all heard the saying “,those who fail to learn from history are likely to repeat it.” With elections approaching, it is critical that we look back and critically examine not only the people, but also the patterns that have led us here. We cannot build the Nigeria we want without learning from the past and making the necessary adjustments while preparing for the future. It takes time for change to occur, just like Rome did not rise overnight. Nevertheless, now is the time to lay the foundation for the Nigeria we seek to build, tomorrow. 

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There may be a question in your mind as to what these foundations are. There is first of all a sense of worth and worthiness in life. For any nation to fully develop, it must place a high value on the lives of its residents. As we prepare for the next elections, we must question which of these candidates prioritizes the worth of life and a sense of being Nigerian citizens. This includes: freedom of speech, equality and democratic processes at all levels. This is a priority because unless the worth of life and a sense of self are prioritized above all else, even the best-looking prospects will ultimately become unyielding and dictatorial.

Secondly, there is the growth of human capital and socioeconomic empowerment. It is common knowledge that every industrialized country prioritizes these two factors. No nation is more powerful than its economic potential. Our leaders must be intentional about this. Being a producing nation is one way to successfully enforce this. Nigeria is a great country, yet we are unable to enjoy the fruits of our labor.

All human capacities that can help to improve our economy include the capacity to create, invent, strategize, and engage. To think for ourselves, to maximize the potential of our teeming young people, to generate opportunities and employment, all of these are vital for progress and must be prioritized if we are to see any change in our nation.

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.

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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