Global Uncertainties Threaten African Investment, UNDP Warns
The United Nations Development Programme (UNDP) has raised concerns about the impact of global uncertainties, including wars and rising protectionism, on investment flows crucial for Africa’s economic growth. Dr Raymond Gilpin, Chief Economist at the UNDP Regional Bureau for Africa, highlighted these issues during the closing session of the 2024 African Economic Conference (AEC) held in Gaborone, Botswana.
The three-day conference, co-hosted by the African Development Bank (AfDB), the Economic Commission for Africa (ECA), and the UNDP, alongside the Botswana government, concluded on November 25.
Challenges Facing Africa
Speaking to delegates, Dr Gilpin warned that protectionist policies and geopolitical conflicts are dampening investor confidence in Africa, posing a threat to the continent’s GDP growth.
“The rising trend towards protectionism can hurt African trade and slow Africa’s Gross Domestic Product (GDP),” Gilpin stated.
He also highlighted Africa’s disproportionate vulnerability to climate change, which undermines economic progress and threatens the safety and security of its people.
“Africa continues to bear the brunt, disproportionately, of climate change and yet continues to be subdued because of the effects of climate change,” he added.
Opportunities Amidst Adversity
Despite the bleak outlook, Gilpin remained optimistic, emphasizing the continent’s potential to overcome these challenges through integration, technological innovation, and entrepreneurship.
“We have been able to listen to the data, empirical results, and policy pronouncements. That indicates that if we are smart about it as a continent, we can ensure Africa’s economic future in spite of these uncertainties,” he noted.
Gilpin called for leveraging Africa’s demographic advantages and competitive strengths to drive economic dynamism. He stressed the importance of scaling up technological solutions and adopting innovative approaches to longstanding problems.
Call to Action for Institutions
The conference underscored the need for institutions like the AfDB, ECA, and UNDP to take the lead in implementing actionable strategies informed by research and ground-level insights.
“Hearing from people on the ground should point us in certain directions. If we are, at the end of the day, going to rise above the global uncertainties, it is not just the smart things we say on forums like this. It is how we change the way we do business,” Gilpin urged.
He stressed that Africa’s future depends on adopting a forward-looking approach and abandoning outdated practices.
“The Africa of 20 years ago is not going to be the Africa of next year. So, we must change,” he remarked, calling on African researchers and institutions to act decisively on the insights shared during the conference.
The 2024 AEC served as a platform to address Africa’s pressing economic challenges and chart a path toward sustainable growth. While global uncertainties loom large, the conference reinforced the belief that Africa’s resilience, coupled with smart policy choices, can secure a prosperous future for the continent.
The onus, Gilpin concluded, is on African institutions to transform discussions into impactful actions.
