Conference Sounds Alarm on Failing to Reduce Poverty in Africa

March 16, 2023

BY HAILE DEMEKE

ADDIS ABABA–Africa has been facing multifaceted challenges ranging from drought, pandemic, climate change, conflict and others thereby pushing millions of people at risk of poverty.

Speaking at Committee of Experts of the Conference of African Ministers of Finance, Planning and Economic Development, Ethiopia’s Planning and Development State Minister Nemera Gebeyehu (PhD) said that 2022 was a particularly difficult year, mostly due to multiple and overlapping shocks.

“Thus, an array of development challenges has arisen, among others, household poverty, food insecurity, energy insecurity, and social instability.” According to him, the growing poverty and inequality are perhaps the continent’s most pressing challenges and millions of Africans were at risk of falling into poverty in 2022 due to the impact of various shocks like climate, Covid-19 and the war in Ukraine.

Majority of African nations struggle to reach the SDG targets, it was learnt. UNECA Acting Executive Secretary Antonio Pedro on his part said that this year’s theme, “Fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities”, reflects the persistent, compounding and deepening multiple crises Africa is now facing, which are continuing to perpetuate and exacerbate levels of poverty and inequality that were already significant before these recent global shocks.

Africa currently leads in global poverty being home to more than half of the world’s poor 54.8 percent in 2022 overtaking South Asia with 37.6 percent. In the wake of the COVID-19 outbreak, 62 million people were pushed into poverty in just one year, with an additional 18 million estimated to have joined their ranks by the end of 2022.

“All in all, 695 million people in Africa are either poor or face the risk of falling into poverty. This represents 50 percent of the continent’s population. Women and girls remain particularly vulnerable, and we are facing a potential reversal of the hard-won gains made on gender equity. Africa cannot just stay the course and hope that it gets better, it must lead the charge.”

He said: “Policymakers and experts worldwide are recognizing the importance of building resilient and sustainable systems, shifting away from a primary focus on efficiency that has dominated past decades.” This is the present generation’s responsibility to ensure that Africa embraces the change and harnesses the continent’s potential apart from looking for finance to unlock the potential of home-grown solutions, as to the acting executive secretary.

“Currently, many African countries simply cannot access international financial markets because of rising interest rates, and existing debt relief mechanisms that do not work for the continent.” The UN Secretary-General has called for the SDG Stimulus of about 500 billion USD per year, focused on tackling the high cost of debt and rising risks of debt distress, scale up affordable long-term financing for development, and expand contingency financing to countries in need to address this financing divide. The African Continental Free Trade Area (AfCFTA) can deliver on its promise and provide the economies of scale to invest in manufacturing, leading to increased intra-Africa trade. This will bring supply chains closer to home and inject a degree of self-sufficiency in essential products such as medicines, food and fertilizers.

Acting Coordinator for Research and Planning Ministry of Finance of Senegal AdamaSeck said that 2022 was tough for Africa due to Covid-19 pandemic, conflict, climate change and others and affecting the growth of the continent. Public debt continues to rise and at alarming rate in many countries.

The Ethiopian Herald March 16/2023