The African Economic Research Consortium (AERC) recently held its virtual 52nd Plenary Session themed on Business Environment, Competitiveness and Economic Growth in Africa.
The plenary was held over two days with a special session titled: African Economies Amid COVID-19 – Impacts & The Road Ahead, with the official opening and keynote by Betty C. Maina, Cabinet Secretary for Kenya’s Ministry of Industrialisation, Trade and Enterprise Development.
In her official opening speech, Maina highlighted that Africa must reimagine business beyond COVID-19, and that there is an opportunity to reshape Africa’s manufacturing if it focuses on self-reliance.
She noted that African manufacturers are stepping up to produce essential medical supplies, which could contribute $1.5 billion dollars to the continent and, in the long run, African manufacturers can take advantage of opportunities that lead to African trade and global supply chain realignment.
The importance of strengthening Inter-African trade and supply chains could create a springboard for export-orientated growth.
The opportunity to catalyse the formalisation of Africa economies, improve productivity and access to finance will create additional protection and opportunity for employees and SMEs.
“Targeted campaigns need to be launched for SMEs so that they can familiarise themselves with access to finance and labour. It is important to leverage the informal employment sector as it has 70% of the working population and cuts across manufacturing and trade that leads growth to GDP. It is important to create the shift of competitiveness for economies in Africa,” Maina concluded.
Professor Njuguna Ndung’u, AERC’s executive director, commented: “Competitive economies are most likely able to provide an environment conducive to business, market development, policy clarity, strong institutions that define the rules/incentives mechanism and effective coordination; and hence will grow more sustainably and inclusively.”
“This means that there is a likelihood that everyone in that particular society, market segment or physical location will benefit from the fruits of economic growth,” he said.
The forum had a diversity of presentations by various economists and was attended by senior government officials and scholars virtually, who discussed policy options to boost economic recovery after months of lockdown caused by the COVID-19 pandemic.
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