by: Seleman Yusuph Kitenge

Resource mobilisation is a foundation for ensuring that all planned development projects are fully financed and implemented to fast-track Africa’s development. Without requisite financial and non-financial resources, the vision to see ‘the Africa we want’ by 2063 will be unlikely.  The Addis Ababa Action Agenda emphasised for all countries, public policies, and the mobilisation and effective use of domestic resources. It underscored by the principle of national ownership as central to the common pursuit of sustainable development, including achieving the sustainable development goals (SDGs).

However, due to the challenges of Illicit Financial Flows (IFFs), our continent is annually losing about US$88.6 billion, 3.7 percent of its gross domestic product (GDP) as highlighted by UNCTAD’s Economic Development in Africa Report of 2020. Such a huge amount of loss of resources creates a major financial gap for the African Union (AU) Member States to domestically mobilise resources to spearhead the continent’s future. As a result, Africa has continued to lag in various socio-economic development sectors which are crucial for transforming the lives of about 1.4 billion Africans across the continent.

Consequently, the public sector is overwhelmed by the weight of numerous challenges facing Africa especially the ongoing demographic crisis where a majority of the population are youth who are critically marginalised politically, socially, and economically. Therefore, to bridge such a resource gap to finance development in Africa, private sector engagement should be first and foremost in our short and long-term strategic resource mobilisation plans.  This should cut across our national, regional, and continental bodies working to ensure that Africa realise its full potential and meet its commitment towards global and continental development agendas.

For instance, AUDA-NEPAD as a continental development agency  is aware of the opportunity available from the private sector eco-system to ensure that strategic projects, programmes, and initiatives are financed and implemented on a win-win basis. In fact, it has developed a resource Mobilsation strategy that allows the Member States to benefit from 5 dollars for every 1 dollar mobilised. This will allow to create impact directly through Strategic initiatives that touch upon areas such as human capital, health and infrastructure amongst others.

An initiative such as the 100,000 MSMEs Initiative which has now been expanded to reach over 1.5 million Micro, Small and Medium Enterprises, in Africa by providing entrepreneurial and business skills training, improving their access to finance and new markets, establishing networks for support and incubation. It is a vivid example of how private sector should be engaged as an important partner towards a common development vision. In addition, it demonstrates how important it is for the private sector to be engaged and involved in addressing Africa’s most pressing issues such as youth unemployment and the like. By including the private Sector to the stakeholders of AUDA-NEPAD, it is guaranteed that the Agency will uphold its role of technical interface of the African Union and create a complete ecosystem including all the major players in Africa including the MSMEs which constitute more than 70% of the source of employment in the Continent.

Subsequently, ignoring the necessity and existence of the private sector in our approach to accelerate development will further impede our quest to achieve Agendas 2030 and 2063. Considering the budget deficit facing most of our African governments, regional bodies, and continental institutions particularly now that Africa is still slowly recovering from the shocks and repercussions of the COVID-19 pandemic, private sector close engagement will speed up the recovery process in both social and economic spectrum.

According to AfDB, Africa’s private sector accounts for over four-fifths of total production, two-thirds of total investment, and three-fourths of total credit to the economy and employs 90 % of the employed working-age population. Therefore, Africa which is a key global player and powerhouse is very possible, but the possibility to be so will be significantly slim if the private sector is overlooked in our strategies to mobilise resources as well as collaborations to move forward the aspirations and goals of Africans in our development frameworks.