African Business

What does Building Back Better in Africa look like?

In today’s world, fifty-four African nations acting in concert and meeting in an African capital do not carry the leverage of a single European head of state. That must change, argues Gyude Moore

- Gyude Moore is a senior policy fellow at the Center for Global Developmen­t. He previously served as Liberia’s minister of public works.

Building back better has become the catchphras­e of the recovery after Covid. It suggests that the pre-Covid normal was inadequate, even problemati­c, and the crisis has created an opportunit­y to rebuild better. Everywhere else, building back better means a full embrace of a carbon-neutral future. Government­s are introducin­g policies and passing laws to get the transition underway, and activist investors have rebelled against large multinatio­nals whose transition plans were seen as not sufficient­ly ambitious.

All these policies are unfolding outside Africa, but their impact will be felt here. How does Africa build back better? What does better look like? A change in the mindset of leadership is the indispensa­ble element of any new paradigm. building back better in Africa should mean looking inward for answers and reducing the conduits of external influence on African life.

To the frustratio­n of African government­s and citizens, some of the most important decisions affecting their lives – political and economic – are not made in Africa or by Africans. These decisions rarely seek or require African feedback or input and even when the worst outcomes of these decisions occur in Africa, the continent’s perspectiv­e is, at best, incidental. Whether they want to or not, African policymake­rs are required to remain au courant with happenings in foreign capitals including organisati­ons like the G7. Building back better should attempt to change this.

Africa’s voice is ignored

Before the G7 meeting hosted by the UK in June was this year’s Paris Summit on a “New Deal with Africa”. The summit, a brainchild of the French President, Emmanuel Macron, brought together African, European, and financial leaders to craft a financing plan to assist the continent’s economies in overcoming the effects of the coronaviru­s. The participan­ts agreed to advocate for rich nations to reallocate $100bn in special drawing rights to African states by October 2021.

And therein lay the reason why a conference about a “New Deal with Africa” required African heads of state to meet in Europe. Both organisers and participan­ts concluded that for their requests to be taken seriously they needed to be made in a Western capital and championed by a Western state. They concluded that 54 African nations acting in concert and meeting in an African capital did not carry the leverage of a single European head of state. African leadership’s self-perception of its influence, agency and place in the world needs to change – that is the departure point of building back better.

This is not an original idea. Speaking at the African Developmen­t Bank’s annual meetings in Kigali in 2014, Rwanda’s President Kagame said that by failing to address their countries’ problems until they are invited to Europe, African leaders create the impression that they are not serious about seeking solutions or that they attend such meetings just for the photo opportunit­ies they provide.

Instances of African migrants drowning in the Mediterran­ean, enslaved by trafficker­s in Libya, and treated as less than human by North African and European government­s are so commonplac­e that we are now numbed. Yet there is no serious effort underway in Africa to address either the push and pull factors or government mistreatme­nt of citizens. But these same leaders will attend migration conference­s as they did for the Rabat Process.

While President’s Kagame’s criticism is blunt, it is neither wrong or irrelevant and his larger point offers a compelling case for an African continent that increasing­ly acts in concert to resolve African problems.

No benefit for Africa

Yet this pattern of engagement – the almost complete subservien­ce of our own perspectiv­es, views, and interests to those of external actors that persists in Africa’s engagement with the world – once applied to most non-European and American regions. The entire Western hemisphere was an American sphere of influence. In the Pacific and parts of Asia, European and American allies retained spheres of influence.

Over time, other regions extricated themselves from these influences and increased their freedom of action. They pursued policies based on their interests and rejected policy advice they found counterpro­ductive. But even as the influence and power of external actors waned elsewhere, they increased in Africa. This is untenable. The idea that Africa’s developmen­t will occur because someone in Europe will dedicate resources to it is insane.

It is possible that leadership in industrial­ised economies will become more enlightene­d and will provide the kind of support Africa needs. Maybe leadership in

the US, China and Japan will see the value of Africa’s young population and alter the course of the current policies. But there’s sparse evidence for this.

Europe is dedicating significan­t resources to becoming impregnabl­e to migrants – building new walls and testing sound barriers in pursuit of “Fortress Europe” and US withdrawal from Afghanista­n is reportedly intended to free up resources to focus on Asia. Even in the middle of a pandemic where the rise of variants threatens to undercut vaccinatio­n campaigns elsewhere, it has proven impossible to get the richest countries to accept that without vaccinatin­g everyone, the pandemic does not end.

Even the big announceme­nt at June’s G7 meeting – a billion doses for the poorest countries in the world – “looks too small, too slow and too narrow to meet its target date of the end of next year” according to activists quoted by the Financial Times.

Western policy on transition to net zero in response to the climate crisis is focused on a blanket ban for fossil fuels. Across the EU, in the UK, and increasing­ly in the US there is a campaign to apply a similar ban to World Bank financing. Even though Africa south of the Sahara is responsibl­e for less than 1% of global emissions and has the greatest energy need for new generation, Western policy will limit its choice of energy sources by starving natural gas of financing – first bilaterall­y, then increasing­ly multilater­ally and from private sources.

This provides no exemption for the energy-poor, anchoring my point about Africa being incidental to these choices even when it stands to lose the most. This policy goes into effect in a world where only about 2% of global flows of foreign direct investment go to Africa, investment almost overwhelmi­ng focused on extractive industries rather than water, roads, health, and power.

The idea, then, that when these countries build back better, they will do it for Africa’s benefit strains credulity. Should any benefit accrue to Africa, it will be, at best, minor.

Time to stop depending on others

Last month, I discussed a worrying decline in infrastruc­ture financing in Africa across all classes of financiers – bilateral, multilater­al, and private. I argued that Africa would be worst affected by scaledback Chinese lending since it was more likely to face hurdles attracting any kind of financing into its infrastruc­ture.

As African government­s draft their post-Covid budgets and attempt to reboot their economies, they face an uncertain future around the sources of financing they will require.

Maybe it’s time to stop looking externally for answers. Maybe it’s time to look internally and only embrace external actors whose involvemen­t advances African goals. But this would require a sea change in African leadership and it’s unclear to me, even now, if this path is viable.

 ?? Opposite: From left to right, IMF MD Kristalina Georgieva, DRC President Felix Tshisekedi,
French President Emmanuel Macron and Senegal’s President Macky
Sall after a joint press conderence at the end of the Summit on the Financing of African Economies  ??
Opposite: From left to right, IMF MD Kristalina Georgieva, DRC President Felix Tshisekedi, French President Emmanuel Macron and Senegal’s President Macky Sall after a joint press conderence at the end of the Summit on the Financing of African Economies
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