For Agenda 2063 to achieve accelerated growth, broad structural transformation and sustainable development desired by African citizens, it is important that the most critical factors and processes for success are clearly identified and acted upon. These factors are political, economic, social, environmental, technological, legal and institutional and they directly or indirectly contribute to or trigger a transformative change or serve as a catalyst for the realization of the African aspirations for 2063.
Further, in the next 50 years, new and unforeseen risks and threats (i.e. factors likely to have a disruptive influence on Africa’s future) and/or opportunities for development are likely to emerge, while the ones we know today could assume new dimensions. In this context appreciating global mega trends and how these are likely to impact on Africa is of critical importance.
This chapter highlights these critical factors for Agenda 2063 success as well as potential risks/ threats and mitigation measures, to facilitate the realization of Agenda 2063.
5.1 CRITICAL FACTORS FOR SUCCESS
- Leadership and political commitment: this is a critical factor that would shape Africa’s future and determine the success of Agenda The leadership challenge for accelerated economic growth, transformation and sustainable development that Africa faces today is more complex, albeit nor less demanding, than at the time of the struggle for independence from colonialism. There is a need for visionary leadership in all fields and at all levels: politics, business, industry, science, religion, education, and culture. Experiences from across the world suggest that success comes from a political leadership that has vision and commitment as well as the will and capacity to implement it.
- Capable development state. Effective, accountable and development oriented institutions, efficient and strong bureaucracy, clear and pragmatic development vision and planning, public policy that supports national entrepreneurial class and builds public trust, and governance structure based on transparent laws and rules are critical for the realization of Agenda In cases where structural transformation has succeeded, the state has played a crucial role in the process. State capacities and institutions need to be strengthened to build a vibrant private sector, mobilize the population and build national consensus around a common development agenda, and ensure that adequate resources are committed to achieve it. Above all, the African state must be accountable and responsive to the needs of its population.
- Participation, inclusion and empowerment of Effective participation of all stakeholders in the conception, design, implementation and monitoring and evaluation of Agenda 2063 is a critical success factor. Thus, Agenda 2063 must be fully participatory and be owned by all the continents’ stakeholders – the whole continent must be part of it to rekindle the spirit of working together to forge the destiny of the continent – the engagement of women and the youth in particular is critical. With empowered citizens, a responsive civil society, social and economic transformation can become a reality. The active engagement of the Diaspora can be one of the key drivers of change for Africa’s development; contributing to strengthening of African economic independence through investment, expertise and general political, cultural and social solidarity.
- A results-based approach with concrete targets that are measurable and can be tracked and While providing a general framework and a common set of goals and targets, Agenda 2063 also takes account of Africa’s diversity and defines trajectories and addresses issues related to this diversity.
- Revitalizing strategic planning and ensuring effective interface among national plans, regional initiatives and Agenda Integrated continental, regional and national planning based on series of short, medium and long term time horizons is vital for sound economic management, the pursuit of holistic and integrated (across sectors and physical space) development and, in a word, for ensuring the realization of Agenda 2063. Interface among national plans, regional development initiatives and Agenda 2063 is also critical for the success of Agenda 2063. While the ultimate responsibility for plan implementation rests with national governments, there is need for coordination and interface at all stages of the planning cycle, including in defining priority issues, setting of goals, plan formulation, implementation and monitoring and follow up.
- Making Agenda 2063 an integral part of the African Renaissance. The African Renaissance calls for changes in attitudes, values and mindsets and inculcates the values of Pan Africanism, self-esteem, hard work, entrepreneurship and collective prosperity. Therefore, promoting the values of discipline, focus, honesty, integrity, an ethos of hard work are key for the realization of Agenda 2063, making it different from preceding continental frameworks and be successfully Agenda 2063 provides the opportunity for Africa to break away from the syndrome of “always coming up with new ideas but no significant achievements”.
- Africa taking charge of its global narrative. Africa needs to take charge of its global narrative and brand, to ensure that it reflects the continent’s realities, aspirations and priorities and Africa’s position in the world. In this regard, Agenda 2063 reaffirms African unity and solidarity in the face of continued external interference including by multi-national corporations, attempts to divide the continent and undue pressures and illegal sanctions on some countries.
5.2 RISKS, THREATS AND MITIGATION STRATEGIES
Existing and new threats faced by the continent, include scrambles for its resources in the face of changing global demands and demographics; undue external influence in the affairs of the continent; Africa’s disproportionate burden of the impact of climate change; and the huge scale of illicit outflows of African resources and capital.
More specifically, the key risks/ threats are:
- Conflict, instability and insecurity: in the past 50 years, many African countries have experienced varying degrees of conflict and insecurity caused by, among others,: (i) lack of sound governance and democracy; (ii) poor management of diversities – ethnic, religious; (iii) severe competition over scarce resources (land, minerals, water, timber, etc.);
(iv) poor economic management; and (v) natural and man-made disasters. Although many African countries are stable and much stronger today compared to the immediate post- independence years, the threat of state fragility lingers on with potential to spill over to neighbouring countries. The new trend in politics associated with the “street” can have a destabilizing effect if not properly managed.
- Social and economic inequalities: income inequality in Africa is high and reaches 60per cent in some countries. The robust economic growth that Africa enjoyed over the past decades has increasingly concentrated wealth in the hands of a few with limited amounts trickling to the majority of the This combined with the huge urban youth unemployment and prevalence of poverty make social and economic inequality a major source of political, social and economic risks.
- Organized crime, drugs trade and illicit financial flows: in the past decade, international drug cartels have used West Africa as a major transit route to Europe. The United Nations Office for Drugs and Crime has estimated that at least 50 tons of cocaine worth some US$2billion from Latin America transits through West Africa every year. The trade has corrupted government officials and the military in some countries. The proliferation of maritime piracy in Africa has also been closely related to state fragility. Today maritime piracy is staged mainly from two regions of Africa: the Horn and the Gulf of Guinea. Similar to drug trafficking, piracy also distorts regional economies. For example, Kenya’s tourist industry was seriously affected by the activities of the pirates and the government was forced to take extraordinary measures. Illicit financial flows divert much needed finance away from development of Africa to elsewhere in the
- Poor management of diversities; religious extremism, ethnicism and corruption: since the creation of the OAU, Africa has been successful in forging solidarity and building upon shared values and history while taking full cognizance of her diversity (economic wealth, stage of development and culture). However, religious extremism, ethnicism and corruption have compounded the challenges of managing diversity because of sharp economic and social rifts they create among
- Failure to harness the demographic dividend: In the next 50 years, Africa’s biggest single asset but also its potential Achilles heel is the large and youthful In 1994, Africa had a total population of 697 million (12.5 per cent of the world’s population); twenty years later in 2014, it reached 1.2 billion (15.1 per cent of the world’s population) and by 2060 it is projected at 2.7 billion (close to one third of the world’s population). Africa will also account for 28 per cent (1.2 billion) of the global youth population aged between 15 and 29. In many of Africa’s so-called fragile states, almost three-quarters of the population are aged below 30 years. Strategies and policies are needed to harness the potential and convert potential threats and risks to opportunities. Governments must be willing to take comprehensive actions, including, expanding education and training, creating job opportunities, combating diseases, enhancing socially and environmentally responsible investment.
- Escalation of Africa’s disease burden: A combination of several factors including inadequate investments in public health system, its geographic location, i.e., largely tropical location, poverty, poor nutrition and sanitation have exposed Africa to disproportionately heavy disease burden compared to other developing countries. New viruses and diseases may also emerge in the future.
- Climate risks and natural disasters: Climate change will continue to adversely impact Africa’s development for many years to come. In 2007, the Inter-Governmental Panel on Climate Change (IPCC) declared Africa as one of the most vulnerable continents to climate change and climate variability, a situation aggravated by the interaction of multiple stresses
at various levels and the continent’s low adaptive capacity. Africa has also limited capacity for disaster preparedness and prevention, and every natural disaster leaves a trail of human and material destruction. There are also substantial risks of land grabs and privatization of the commons, which would accentuate vulnerability to climate risks.
- External shocks: African countries have been and will continue to be vulnerable to the vicissitudes of global market forces. In the context of a 50-year time frame, changes in the global economic environment such as a collapse of commodity prices, financial crisis or some other developments in the political, social and environmental fields can potentially derail Africa’s development trajectory.
These threats and challenges can however, be mitigated and turned into opportunities through mounting collective strategies and effective public policy responses and actions to counter the most disruptive economic, social and environmental changes facing Africa.
Overcoming risks and addressing fragilities entails several dimensions:
- Drawing on the resilience found in African societies – farming communities have shown a strong capacity to weather risks and create livelihoods in the most difficult environments; through civil society, communities are able to govern their affairs, manage disputes and protect the vulnerable; and African women play a vital role in forging peace and rebuilding livelihoods. Building upon these diverse forms of resilience can help Africa counter risks;
- Building interlocking partnerships and institutions at community, member states, regional and continental levels to help absorb these disruptive changes and reduce associated community and state Building the capacities of RECs to find regional solutions to address drivers of fragility is of critical necessity.
- Promoting economic diversification, climate resilience and disaster preparedness and Already envisaged by Agenda 2063, value addition in the agricultural and mining sectors, diversification of African economies away from dependence on agriculture based exports and also dependence on one or two primary commodities will be crucial risk mitigation mechanism.
- Building human capital and promoting a skills Agenda 2063 accords priority to having well-educated citizens underpinned by skills revolution, science, technology and innovation combined with full access to quality health care. This has the potential to transform the risks of demographic and disease burdens into a demographic dividend and lead to the economic transformation of the continent.
These strategies and others will better position Africa to face up to global mega trends and forces discussed below.
5.3 GLOBAL MEGA TRENDS AND FORCES
Agenda 2063 is being implemented at a time of a fast changing Africa and the world. The key drivers of these changes are different forces originating within Africa (endogenous) and outside of Africa (exogenous). Drivers of these changes in 2063 will also be different from those of today given political, demographic, economic and social dynamics as well as shifts in societal interests and concerns.
Fifty years is a long time to meaningfully identify mega trends that are likely to significantly impact Africa’s growth trajectory and transformation. However, based on what stakeholders’ consultations on Agenda 2063 highlighted in terms of threats and opportunities, combined with literature review, the following mega trends have been identified:
Democratization, the rise and empowerment of the individual:
Rapid advances in technology and educational opportunities are producing smart, mobile, connected, borderless and informed citizens, which is unprecedented in human history. Africa’s ICT broadband penetration rate has increased rapidly from a base of only 7per cent in 2010; while the average number of internet users in Africa is about 12 per 100 people, with large variation among countries. Connecting the unconnected and the fast rising digital economy will create tremendous opportunities for growth and transformation that will reshape Africa’s economic and social landscape. It will also have a significant impact on the practice of democracy and governance.
Democratic and participatory governance structures are expanding in many parts of the world, more so in Africa. In response to demand from these, citizens are in turn creating an enabling environment for empowerment and freedom to unleash their ingenuity and energies for growth and transformation.
Climate change and the low carbon economy
Climate change impacts on Africa are expected to be severe, pervasive, cross-sectoral, long-term, and in several cases, irreversible. IPCC estimates median temperature increases of 3°C to 4°C for Africa, one-and-a-half times greater than the global mean increase of 2.0˚C and 4.5˚C by the end of the century, which, among other things, will force Africa’s fish to migrate to European waters.
It will also threaten Africa’s fragile peace and security through worsening environmental stress, inducing population displacement, spontaneous large-scale migration, land encroachment, and creating refugees.
Sea level rise and erosion of coastal areas are predicted to severely impact major African cities: Abidjan, Accra, Alexandria, Algiers, Cape Town, Casablanca, Dakar, Dar es Salaam, Djibouti, Durban, Freetown, Lagos, Libreville, Lome, Luanda, Maputo, Mombasa, Port Louis, and Tunis. Small Islands are also particularly vulnerable.
Over all, the prevalence and severity of extreme events such as heat and cold waves, dust storms, severe winds, floods, droughts, greater rainfall variability and patterns are expected to distort traditional crop cycles, and diminish agricultural and industrial raw materials productivity as well as export earnings, and increase plant and animal pests and diseases.
Natural resource depletion and demand shifts
Deforestation results in significantly environmental degradation, diminished earnings with negative social and environmental consequences, including: deterioration of ecological systems with resulting negative impacts on soil fertility, water availability and biological resources and acute shortages of fuel wood and construction material in many parts of the continent.
While managing natural resource scarcities and abundance has the potential to define Africa’s development, peace and security agenda, Africa’s challenges and opportunities include:
- Water scarcity: which can trigger conflicts and crisis;
- The scramble for Africa’s vast arable land resources;
- Mineral processing technologies – improving efficiency of resource exploitation (yield rate); and developing applications for lower grade ore; and
- Blue/ocean economy, including deep sea mining and reclaiming Africa’s maritime
Demographics and urbanization
At current growth rates, Africa’s population will reach 2.6 billion by 2063 – larger than that of India or China. The developed world’s population is ageing, paving the way for developing economies, Africa in particular, with their younger population to fill the gap. Africa is, thus, well positioned to reap the demographic dividend in the years to come given its projected 1.2 billion youth population by 2063.
Africa has the highest urbanization rate (3.23per cent) in the world with an urban population of 400 million doubling in the next 20 years reaching 1.5 billion people. However, about 61.7 per cent of the continent’s urban populations were living in slums in 2010, the highest rate in the world. Africa’s megacities of today, i.e., Cairo and Lagos suburbs with population of 19 million and 15 million respectively will be followed by the soon – to – be mega cities of the coming 50 years: Gauteng (Johannesburg and Tshwane), Western Cape (Cape Town), Luanda, Accra, Khartoum, Dakar, Brazzaville/Kinshasa,; Addis Ababa; Maputo; Dar es Salaam, and Nairobi
New technologies and innovation
Among the technologies that are likely to impact Africa are:
- Agricultural biotechnology – which utilize gene-based techniques to improve agriculture productivity, farm management practices, produce more drought, water logging, and disease resistant varieties that help minimize the high costs of agrochemicals, pesticides, and water;
- Health and health innovation systems – inventing new drugs, vaccines, nuclear medicine, diagnostic tools, to cope with emerging diseases as well as treat the untreatable;
- Renewable energy and new technologies: driven by diversification of energy sources, enormous demand increase for energy arising from accelerated economic growth, carbon emissions become taxed and regulated, energy security, cleaner and affordable electricity with smart power meters and grids;
- ICT, robotics and automation: all likely to witness rapid changes in the world in the coming
Changes in the global financial architecture
Issues raised in the WTO and multilateral trade liberalization negotiations suggest impending changes in global trade and financial regulations that would lead to increased financial integration
– capital is used effectively and that safeguards are built against sudden halts and capital flow reversals.
Global political and economic power shifts
The European and US bilateral trade engagements with Africa: the end of preferential schemes for Africa (AGOA, Everything But Arms (EBA) replacement by Economic Partnership Agreements (EPA), and end of the Cotonou Agreement) are possibilities that would impact Africa’s development trajectory.
Aid policy could also change. By 2063 aid flows to Africa could diminish to zero with the withering away of the constituency for aid to Africa in Europe and the decline of the relative income differential between Africa and Europe.
To effectively deal with these megatrends and transform potential risks into opportunities, Africa needs to invest in building its knowledge base, fully understand dramatic shifts constantly taking place, anticipate what may come and put in place appropriate and timely policies and strategies.
In particular, there will be a need to:
- Ensure prevalence of human freedom and full connectivity while provisioning for growing numerous challenges to government structures and processes emanating from empowerment of the individual;
- Bring up Africa’s science and technology to the frontiers of global change;
- Manage natural resource revenues; tackling illicit capital flows and developing innovative development financing such as sovereign wealth funds including inter-generational funds based on exhaustible natural resources;
- Build biotechnology into Africa’s indigenous genotypes of flora and fauna and ensure that biotechnology including genetically modified organisms (GMOs) would not easily destroy the diversity, quantity, and quality of Africa’s genetic resources;
- Invest heavily in transforming and expanding the African pharmaceutical industry, including nuclear medicine to free Africa from scourges of communicable diseases;
- Strengthen both domestic and regional financial markets, boosting resource mobilization and broadening access to financial