Remarks by Ms. Ahunna Eziakonwa, Regional Director At the Oxford Society for International Development’s Speaker Event

June 17, 2019

Ms. Ahunna Eziakonwa, Regional Director and Assistant Secretary General for UNDP Regional Bureau for Africa making her remarks

Remarks by Ms. Ahunna Eziakonwa

Regional Director and Assistant Secretary General for UNDP Regional Bureau for Africa

At the Oxford Society for International Development’s Speaker Event on “'Making international organisations work for Africa's development"

14 June 2019.

[As prepared for delivery]

Distinguished members of the Oxford Society for International Development

Ladies and Gentlemen

Colleagues

It gives me great pleasure to join you today at this Speaker Event to discuss the role of international organizations in supporting international development, particularly in Africa.  This is an opportunity to reflect on my experience with the United Nations and with development organizations large and small working to enlarge people’s choices, expand their freedoms, and shape our world by altering development pathways.

I would like to begin our conversation today by reflecting on why we still focus on development in a changing world, inspired by rapid technological advances, growing connectivity and innovation. There are global structural shifts unleashing unstable and unpredictable forces that can alter dynamics radically with both negative and positive outcomes. The nature of development actors is also changing even as Africa’s development landscape evolves.  It is my deepest conviction that we need a new way of working to support an ambitious global and continental development agenda.

First, I believe that many of you will agree with me, that Real development places people at the centre of integrated solutions.

Real development is about enriching opportunities and choices for every girl, boy, woman and man.  For the last three decades, UNDP has championed an approach to development that looks beyond enriching economies. Expanding human capabilities – what people can and are able to do – is at the centre of development.

There has been marked improvement, but more must be done. Today, more people are living longer, they are more educated and have greater economic opportunities.  The overall human development index in Sub Saharan Africa improved notably from 0.398 in 1990 to 0.537 in 2017. Twenty-one countries in Africa have now achieved medium to high level of human development, while 33 countries – out of 54 - are still considered to have low human development.

Yet today's human development challenges and emerging risks – from forced migration and protracted conflicts to climate change,  rising inequalities and unemployment – cannot be dealt with in isolation. They are complex, linked and interdependent. This means that the way we work and the solutions we develop must be integrated. The 2030 Agenda for Sustainable Development (SDGs) gives us a framework to help create integrated solutions through its 17 indivisible SDGs. 

As UNDP, we believe that alternative models for development are needed drawing on integrated solutions that address core structural development challenges to harness Africa’s potential are our best chance to deliver on these ambitious targets by 2030. Transforming economies by overcoming low productivity, reliance on commodities and slow industrialisation to tap into Africa’s vast natural resources and human capital for development has the potential to propel the continent to more equitable and sustainable human development that leaves no one behind.

And Africa has significant untapped potential, for example:

  • Africa has the world’s largest arable landmass; it has the second largest and longest rivers (the Nile and the Congo); and has second largest tropical forests in the world.
  • Africa’s fisheries and aquaculture sector alone add USD 24 billion to the continent’s economy and 30% of all global mineral reserves are found in Africa.
  • In addition, the working population that is expected to increase by 1.7 million monthly until 2030, is a powerful force for growth in underdeveloped sectors such as agriculture, manufacturing and services.

Which brings me to my second main point, the nature of development organisations and actors is changing, this calls for broader partnerships.

In the past, the public sector and multilateral organisations were the main conduit of development financing.  More recently, bilateral, south-south exchange, private philanthropy and private sector and civil society engagement are gaining ground.

Traditional development assistance is falling in real terms and bilateral flows dwarf multilateral financing. In 2018, traditional donors (OECD DAC) disbursed USD 29.7 billion to Africa of which 25.9 billion was destined for Africa South of the Sahara, representing a 4% reduction in real terms from 2017.  In 2017, these bilateral flows to Africa south of the Sahara were also higher than multilateral flows – estimated at USD 25.6 billion compared to USD 19.5 billion.

South-south development exchange has grown considerably, from trade to foreign direct investment, technology transfer, sharing of development solutions and experts.  Emerging donors such as Brazil, China, India, Kuwait, Saudi Arabia, South Africa, the Republic of Korea, Turkey, and the United Arab Emirates are committing more resources and setting up their own development agencies.

As personal wealth expands so has private philanthropy from both African and global actors. Annual philanthropic contributions for development assistance ranged from USD 4.5 billion to USD 8 billion over the past decade.  International foundations are now major partners in health and education, while African Foundations such as Mo Ibrahim and Tony Elumelu foundations contribute to governance and youth entrepreneurship development respectively.

Africa’s vibrant civil society plays an important role in providing services and ensuring communities are engaged and empowered. In South Africa alone, there are more than 100,000 registered non-profit organizations and in Kenya the number of NGOs grew by over 400% between 1997 and 2006.

And private sector organisation and international financial institutions are now key partners in Africa’s development. Africa has over 700 companies with an annual revenue of more than $500 million, including 400 with annual revenue above $1 billion that drive investments, jobs, value chains and services. Over USD 25.6 billion was invested in Africa by private equity firms between 2010 and 2016 – benefitting from the higher returns on investments in Africa compared to other emerging markets.   

Stronger partnerships with emerging development actors and private sector enterprises both large and small, could be the key to sustainable financing for development. Africa needs between USD 600 billion and USD 1.2 trillion per year to implement the SDGs. Infrastructure alone will cost USD 93 billion a year with a funding gap of US USD 50 billion. And USD 32-40 billion is needed annually for agricultural sector investments. Helping countries to create an enabling environment for sustainable partnerships with the private sector by galvanizing domestic investment, eliminating capital flight and leveraging investments from pension and sovereign wealth funds, Africa could close this financing gap. In this context, the role for an organization like UNDP is changing; we are increasingly working in partnership with Government and IFIs, providing technical support for the effectively use of loan money’

Investors are beginning to recognize the economic opportunities from investments that are aligned to development objectives including the SDGs, but there is room to grow. For instance, investing in food and agriculture, cities, energy and materials and health and well-being presents commercial opportunities worth an estimated USD 12 trillion by 2030. Sustainable investing grew 34% in the last two years, with assets in five major markets totaling over $30 trillion. Impact investments that generate, rather than undermine, social and environmental goods grew twenty-fold between 2014 and 2017. However, this is only one-twentieth the size of the growth in pension funds and venture capital.

This brings me to my final point, the development landscape in Africa has evolved, creating new opportunities for engagement.

Africa is implementing a new and ambitious agenda for development. Improved governance, fewer conflicts and rapid economic expansion have resulted in more middle-income countries, a growing middle class and an increasingly urban population.

In the last 10 years, 34 African countries, home to 72 percent of Africa’s citizens have experienced improvements in governance.  From better political participation to rule of law and increased rights, transparency and accountability. Countries like Mauritius, Botswana, Cape Verde, Namibia, and Ghana are some examples of politically stable, democratic countries leading the trend.  There have also been at least 27 leadership changes since 2015, highlighting the continent-wide push for greater accountability and democracy.

It is also important to note that Africa now has 27 middle-income countries (MICs) - out of 54 countries – and is home to an expanding middle class estimated at 330 million people as well as vibrant civil society organisations.  This growing middle class, most who live in cities, are fuelling growth and creating new markets. For instance, household spending grew steadily from US$1 trillion in 2010 to reach US$1.6 trillion in 2017 and is projected to $2.1 trillion by 2025, and $2.5 trillion by 2030 (Brookings). Productivity in cities is three times as high as in rural areas and, over the next decade, an additional 187 million Africans will live in cities, according to the United Nations.

In addition, Africa has embraced the digital revolution with many firsts on the continent led by young digital entrepreneurs. Africa is already a global leader in digital innovation such as mobile payments (MPESA) boosted by its young population and increasing mobile phone penetration. By 2050, Africa will have close on one billion, well-connected young people under 18 years old.

Young digital entrepreneurs such as Abdou Mamane Kane in Niger and Ulrich Sossou in Benin are changing the digital face of Africa.  In Niger, Abdbou’s award winning Tech Innov enterprise is connecting poor rural farmers to an e-irrigation and e-assistance system that can be switched on remotely via a mobile phone. In Benin, Ulrich Sossou has launched an innovative and profitable real estate management solution that targets the US market – even though he’s never actually been to America!

Africa’s development aspirations are consolidated in a new transformative agenda for inclusive sustainable economic and social transformation – the African Union’s Agenda 2063 – the Africa we want. Agenda 2063 is closely aligned with the global Sustainable Development Goals and promotes regional integration, collective security and peacebuilding. The African Union is transforming into a strong, cohesive and more efficient norm-building mechanism, supported by regional economic communities, the African Agency for Development (formerly NEPAD) and the peace and security mechanisms that are making a difference in Burundi, the Central African Republic (CAR), the Democratic Republic of the Congo (DRC), Gambia, Lesotho, Mali, South Sudan, and Somalia.

The implementation of the Africa Continental Free Trade Area could shift Africa’s development trajectory. It is worth noting that the ACFTA agreement that came into force on May 30 to be launched on 7th July 2019 is unprecedented. Regional integration has the potential to accelerate growth, employment, poverty eradication and investment that impacts 1.26 billion people with combined GDP of 2.14 trillion.  It would result in a potential 1.2% increase in total employment, 1-3% increase in GDP, a decrease in the deficit of 50% as well as a 33% increase in intra African exports (UNCTAD, 2018).

Ladies and gentlemen

In summary:

  •  Africa is not a country – one size fits all policy solutions will not work, better analytics and integrated solutions to complex development challenges are required.
  • Africa is not Poor – Africa’s wealth must be better leveraged for its citizens.
  • African people’s and their institutions are reimagining their social, economic and development agendas – it is important to use existing platforms for engagement to drive transformation.
  • Africa’s greatest economic potential lies within the continent – accelerating development in Africa lies in greater trade integration and collaboration across borders.
  • Africa’s ownership matters – in the past most international organizations works on Africa are determined outside Africa. Apart from coupling all external support to Africa to the continent’s agreed priorities like Agenda 2063 and the Africa Continental Free Trade Area.

Building on UNDP’s analysis and experience globally and in Africa, I wish to propose 6 strategies for all development actors to embrace in order to make international organisations work to deliver better on Africa’s ambitious agenda.

A changing domestic and external context demands a shift in what development partners do and how.  The future demands a revolution in how development cooperation occurs – less rigidity, increasing openness, agility and adaptability, drawing heavily on knowledge and innovation, changing risk perceptions and tolerance for failure.  Breakthrough solutions. For organisations to work better for Africa’s development, they must:

1.    Emphasise leaving no on behind and tackle the root causes of poverty and inequality in all its dimensions.  All development actors should work to help people to get out of poverty and to stay out of poverty.   Beyond decent jobs and livelihoods, support should be provided to social safety nets, boost political participation and ensure equitable, sustainable and affordable access to services like water, energy, healthcare, credit, and productive assets.  Eradicating poverty is key to achieving all the SDGs, from inequality reduction to sustainable production systems and peaceful societies.

2.    Build resilience by strengthening the humanitarian, peace and development nexus. Organisations should help countries and communities to better manage conflict, prepare for major shocks and recover in their aftermath. Building resilience is transformational. Strengthening the resilience of people, communities, institutions, and countries makes them better able to prevent, anticipate, absorb, respond to and recover from crises.  By integrating early recovery into all humanitarian action, development planning and investment decisions, individuals and communities can get back to their homes, jobs, and schools sooner and start thriving again.  UNDP has pioneered a 3X6 approach to enhance resilience through livelihoods recovery programmes in post-crisis and transition settings in Yemen and Burundi.

3.    Create an enabling environment conducive for partnerships with all development actors to power technology, innovation and financing for development. Development challenges are no longer contained to a particular country or region and often have global implications. This calls for a global coalition to solve our common challenges so that no person, country or region is left behind.  Achieving the SDGs will require actors across public, civil society and private sectors to work together to mobilize more resources (financial, human and institutional) to close the financing gap for the SDG.

4.    Empower youth and breaking down barriers that hold women back. As Kofi Annan said “Gender equality is more than a goal in itself. It is a precondition for meeting the challenge of reducing poverty, promoting sustainable development and building good governance”. Achieving gender equality and empowering youth can happen if organisations work to implement existing rights based legal instruments and engage women and youth in decision-making at all levels. Particularly in conflict resolution and peace consolidation.  We must eliminate discriminatory social institutions that block women and girls’ health and education and provide equitable access to economic, financial and natural resources.

5.    Ensure environmental sustainability and an adequate response to climate change.  Organisations should work to support Africa’s  deliberate efforts to safeguard its human development gains and tackle its extreme vulnerability to disasters and climate change. Natural disasters and climate change exacerbate poverty, vulnerability and inequalities particularly for poor and marginalized communities. For 22 African countries classified as highly vulnerable to climate change, and the 75–250 million people facing increased water stress from climate change it is critical to invest in early warning, early action, recovery planning, climate change adaptation, climate resilient cities and human settlements as well as the Blue and Green Economy.

6.    Strengthen accountable and inclusive governance: Organisations should promote more effective, accountable and inclusive economic, social, political and environmental governance that underlies the achievement of all other development objective and ensures that available resources are used to achieve results in the three dimensions of sustainable development: economic, social and environmental. In particular, enhancing transparency, fighting corruption and widening the shrinking pace for civil society and enhancing the participation of youth and women in leadership and decision making.

Ladies and gentlemen

In conclusion, looking ahead, let me reiterate that Africa’s ambitious development agenda can be achieved. It calls for a new way of working that delivers real development in a changing world, in partnership with research institutions and all development actors to curate development solutions that respond to Africa’s evolving development landscape.

UNDP stands ready to partner with public, private and multilateral institutions at national, regional and global levels using our global presence to serve countries as they lead their own development paths to: end poverty in all its forms and dimensions, accelerate structural transformations for sustainable development, build resilience to crisis and shocks – for the benefit of current and future generations.

We are committed to responding to this complex and dynamic development landscape by deploying our Global Policy Network to support an integrated SDG response, while using enhanced metrics for measuring development through a new generation of Human Development Reports for the 2030 Agenda.

We are also rolling out a network of up to 60 country-based accelerator labs by 2020 to utilize new methods for scaling up SDG implementation and country capacity enhancement (30 in Africa) as well as new instruments to enable the private sector to invest in the SDGs.

Join me in advocating for stronger coalitions and partnerships that support Africa’s ambitious agenda for the Africa we all want.

Let me end by saying that Africa represents by far the most exciting frontier for sustainable development heading into the first quarter of the 21st century and beyond.   The nature of development challenge has morphed dramatically creating new opportunities even as new risks have emerged.  The future of sustainable development will be invented in Africa.  Where else would a development professional want to work today?