The Governor of Osun, Ogbeni Rauf Aregbesola at the weekend in London said there is the need to identify the problems of the dis-articulation and non-competitiveness in Africa’s economy in looking at developmental challenges faced by the continent.
Aregbesola, in a statement by the Director Bureau of Communication and Strategy, Office of the Governor, Semiu Okanlawon, was quoted as speaking at the launch of Africa Business Club of the Imperial College Business School, Imperial College London.
He lamented that Africa is the least economically integrated region in the world adding that this is illustrated in the pattern of trade within the continent according to the Economic Commission for Africa (ECA), in a 2015 report where only 14 percent of Africa’s total trade is within the continent.
He said the implication of this was that the remaining 86 per cent is with other regions.
Aregbesola noted that in contrast, North America’s internal trading stood at 61 per cent, EU 62 per cent while Central America 45 per cent, stating that the reason according to UN Conference on Trade and Development (UNCTAD) is that Africa produces primary products and imports finished products which the continent does not produce.
The Governor emphasised that this can be effectively addressed with switching from being producers of primary to secondary goods and adding values, stressing that, adding values creates a value chain that increases the momentum of development.
He said, “In our own little way, when our administration was inaugurated, we made a policy that all government’s purchases must be made within the state, except where it is absolutely necessary to do otherwise.
“This created a value chain that raised the economy of our state from bottom up and empowered people mostly in the grassroots, especially artisans. In a small way, that is innovation. If this should happen on a larger scale, continent wide, where most of government spending is retained locally, the result would be transformational in a very short time.
“There have been several and far-reaching attempts at African integration. These are commendable. However, rather than geld the continent economically, they are dangerously going towards political integration.
“Specific attempts should be made, apart from the point I made earlier on adding value and transiting secondary producers, tariff and non tariff barriers to trade in the continent should be removed. There has to be creative ways of doing this.
“It is disheartening that more economic interaction is done informally than is done formally because of tariff and non-tariff hindrances.
“One other factor is non-competitiveness in Africa’s economy. A 2015 competitiveness report by the World Bank laments that Africa’s economy is the least competitive globally and has remained in the same position for 15 years,” the Governor emphasised.
He averred that even in agriculture which is the main occupation in Africa, productivity has been very low.
Aregbesola said, while Nigeria and much of Africa are leading producers of cassava, the traditional yield per hectare has been around 10 tonnes while global average in 2010 was put at 12.5 tonnes, India’s average yield in the same year was 34.8 tonnes per hectares.
He stated that if Africa can double her food output from cultivating the same land size as she currently does, it is possible to eliminate hunger from the continent, saying this will require innovation in crop science, mechanisation, improved inputs and agriculture entrepreneurship.
“One interesting cause of low productivity is poor health, especially caused by malaria. It has been established that malaria cuts productivity in Africa by as much as 40 per cent. It is a major cause of poverty, just as it is also a product of poverty.
“There should be an innovative way of eliminating malaria and other common diseases that debilitate health and reduce productivity in Africa.
“There is also the urgent need to bring innovation to agriculture for farm produce to be converted into secondary products. For instance, our foods have remained the same from time immemorial.
“Nutritionists and food scientists should find better uses for our crops. For instance, coconut in some parts of the world has become big business, with candies, cosmetics, medicine and animal feeds providing an industry that is geometrically bigger than the old practice of just cracking the hard shell and eating the nut”.
He held that education in Africa has not been an engine of development, rather, it is a system of social stratification where bland certificates are issued in order to separate the political and economic elites from the others.
He described the trend as one of the factors responsible for poor productivity and stated that people who have certificates without the requisite skills cannot drive enterprise, but sees the certification as entitlement to privileges.
”Universities and research institutions should in the real sense begin to provide idea leadership. Contemporary issues and challenges should be the focus of research.
“Too often we see a gap between academic output and societal challenges. There should be workable academic solutions to the challenges of food shortage, housing shortage, unemployment and other ills of our society.
“These ideas should be clear departures from orthodoxies and failed attempts at solving the problems ab initio. In other words, there should be innovation”.
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