Sustainable Development in Post-Pandemic Africa: Effective Strategies for Resource Mobilization
Edited By: Fred B. Olayele, Ph.D. and Yiagadeesen T. Samy, Ph.D.
The importance of effective strategies and mobilizing resources to achieve the Sustainable Development Goals (SDGs) lies at the heart of contemporary African economic development narratives. Domestic resource mobilization remains a challenge in Africa, and the continent continues to rely substantially on external resources (e.g., foreign aid, FDI, export earnings, and diaspora remittances) to finance its development priorities. While many African countries have made a lot of effort to raise more revenue from taxation, several others are finding it challenging to do so.
In addition to triggering the most severe recession in nearly a century, the COVID-19 pandemic has disrupted global value chains, causing unprecedented damage to health care systems, economies, and well-being. Unfortunately, the pandemic is hitting the world’s most vulnerable people the hardest, and Africans are in this category. More so, Africa’s pre-pandemic economy was bedevilled by many challenges; building a more resilient economy after COVID-19 will be crucial to the millions of African livelihoods that have been disrupted by the pandemic. After a period of sustained growth since the late 1990s, the continent’s economic landscape in the last five years has witnessed low commodity prices, sluggish GDP growth, low levels of domestic savings and weak private capital inflows.
Clearly, traditional sources of development financing are not sustainable. With both domestic and external financing expected to dry up in the face of the pandemic and its aftermath, existing unmet financing needs for the SDGs on the continent will be further exacerbated. Given high debt levels and limited fiscal space in several African countries, financing needs must be aligned with available pools of domestic and external capital.
The book is edited by two foremost African scholars in the field of international trade and development, Dr. Fred Olayele and Dr. Yiagadeesen Samy. With 16 chapters contributed by some of the finest Africa-focused scholars and practitioners – from the United Nations Economic Commission for Africa in Ethiopia and the Overseas Development Institute to PwC and universities across Africa, Canada, and the United States – the book unpacks a myriad of issues in the development finance domain, with suggestions on innovative policy and programmatic interventions that will ensure the current crisis does not erase years of development gains.
The contributors discuss effective strategies for resource mobilization, and suggestions on how to reconfigure current financing sources under a forward-looking framework that incorporates other non-traditional financing tools and mechanisms such as public-private partnerships, gender lens investing, new growth drivers, and emerging and disruptive technologies capable of unlocking market failures that often hamper sustainable development financing. A critical examination of these various factors is presently lacking in the African context.