The UN Economic Commission for Africa has launched its 2019 Economic Report for Africa, with optimism that the continent knows its problems, how to fix them and has the capacity to do so.
The 169-page document, titled ‘Fiscal Policy For Financing Sustainable Development in Africa’, was formally launched on Saturday in Marrakech, Morocco.
It was launched as part of activities of the week-long 52nd Session of the of the Economic Commission for Africa.
The event was held on the heels of the 38th Meeting of the Committee of Experts of the Conference of African Ministers of Finance, Planning and Economic Development meeting of experts.
The News Agency of Nigeria (NAN) reports that the 2019 edition is themed: ‘Fiscal policy, trade and the private sector in the digital era: A strategy for Africa.’
The UN under-secretary General and Executive Secretary of the ECA, Ms Vera Songwe, said the 2019 report indicates positive economic and developmental trends across the African continent.
She said that the commission was ready to assist member-states in identifying and overcoming challenges.
“We can do it. We have shown we know how to do it. The question is, are we ready to it? We know we can do it.
“The Economic Commission for Africa is ready to come to any member-country to help put in order,” she said.
The UN chief said the commission was moving from ideas to actions and parties’ inclusiveness in all the stages.
She said that the commission would be testing its hypotheses in some of the member countries.
Songwe, however, pointed out that African countries can significantly increase their Gross Domestic Product (GDP) by bettering their tax collection system, while carrying out major developmental efforts.
“If we make the effort, we are rich enough. All we need to do is to improve on our digitalisation effort.
“Through efficient tax collection system, South Africa has been able to bring down the process of taxation to half a day.
“Rwanda and Uganda have also done it, while Morocco has proved that it is possible to even slash tax rate through a more efficient tax mobilisation effort,” she said.
Mr Mambury Njie, Minister of Finance and Economic Affairs of Gambia, who chaired the ceremony, also reinforced the position of Ms Songwe.
Njie reiterated that the 2019 report shows that the content is improving in all spheres.
He, however, added that the progress varies from one country to another and appears slow.
Njie said that Africa needs to bridge the financing gap of 11 per cent, and the continent needs to eye 30 per cent of the GDP.
Earlier, some representatives of countries during the launch of the economic report had tasked the ECA on the need for better engagement of member-countries.
Dr Ahmed Kamaly, a Deputy Minister of Planning in the Ministry of Planning, Monitoring and Administrative Reforms of Egypt, listed 10 points of order, including data accuracy, involvement of non-governmental bodies and transformative economic structure.
According to him, there is the need for greater emphasis on more innovative sources of resource mobilisation.
He noted that vulnerability of these values has tremendous impact on the Sustainable Developmental Goals (SDG) theme.
The launch also drew the presence of Mr Moubarack Lo, Chief Economist, Office of the Prime Minister of Senegal, and Director, Macroeconomic and Governance Division, ECA, Mr Adam Elhiraka.
Elhiraka said it was important for countries in Africa to ensure that everything was on the table.
According to the 2019 report, to meet the SDGs, Africa will need to raise an estimated 11 per cent of GDP per year for the next 10 years to close the financing gap.
NAN reports that Africa’s current average tax revenue to GDP is below 16 per cent.
The report, however, noted that efficient and effective domestic resource mobilisation can address a substantial portion of the financing shortfall.
NAN also reports that ECA has consistently highlighted this position, culminating in the position paper for the 2015 Addis Ababa Action Agenda on Financing for Development.
The latest report examines the institutional and policy reforms required to enable African countries to maximise domestic resource mobilisation.
The report also focuses on the instrumental role of fiscal policy in crowding in investment and creating adequate fiscal space for social policy, including supporting women and youth-led small and medium enterprises. (NAN)