The 2023 presidential candidate of Labour Party, Peter Obi, has stressed the urgent need for African governments to prioritize fiscal discipline and effective resource management to spur economic stability and growth across the continent.
Addressing an audience of policymakers, economists, and dignitaries in Kenya for the Inaugural Colloquium on Governance, Trade and African Unity, Obi emphasized that the prevailing fiscal indiscipline in many African countries has resulted in unproductivity, excessive consumption, and an alarming accumulation of unserviceable debts.
He pointed out the detrimental impact of this trend, including rising unemployment, inflation, and widespread poverty among the populace.
Obi made this known on his X handle on Saturday.
He wrote, “Yesterday, I was in Kenya to honor an invitation to the Inaugural Colloquium on Governance, Trade and African Unity where I delivered a Keynote Address on Fiscal Discipline in Governance: Strategies for Economic Stability and Growth in Africa.
” I used the occasion to emphasize that governments in Africa must now, as a matter of priority, ensure appropriate fiscal discipline and effective management of their resources for productivity.
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Drawing comparisons with rapidly growing economies like China, India, Indonesia, and Vietnam, Obi highlighted how these nations have successfully lifted millions out of poverty through prudent fiscal policies and resource management. In contrast, Africa’s failure to adopt similar strategies has exacerbated poverty levels, with over 60% of extremely poor people, out-of-school children, and unemployed youth residing in sub-Saharan Africa.
He continued, “African leaders cannot continue with the fiscal indiscipline that has led to unproductivity and consumption which has led to unserviceable debts, unemployment, and inflation, which has impoverished our people.
” While progressive and rapidly growing economies like China, India, Indonesia, and Vietnam have been able to pull many of their people out of poverty through fiscal discipline and prudent management of their resources, Africa has thrown more people into poverty due to fiscal indiscipline and misappropriation of funds. Consequently, sub-Saharan Africa is home to over 60% of extremely poor people, 60% of out-of-school children, and 60% of youth unemployment.
“Strict fiscal discipline must now be followed to ensure that all available resources are employed towards productivity in health, and education and pulling people out of poverty through job creation.”
Obi envisioned a “New and Better Africa” that embraces fiscal discipline, harnesses its resources for productive purposes, and secures its place among developed continents.
” We must, henceforth, stop investing in consumption and start investing in production for the economic growth and development of Africa. By so doing, we will be able to build a New and better Africa that will be beneficial to every African and that will rightfully take its place among other developed continents of the world,” he concluded.
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