‘RESETTING AFRICA’S SOCIO-ECONOMIC AND POLITICAL AGENDA IN POST COVID-19 ERA; HOW LAWYERS CAN LEAD’.
BY H.E AMINU WAZIRI TAMBUWAL CFR (MUTAWALLEN SOKOTO) GOVERNOR OF SOKOTO STATE
BEING TEXT OF KEYNOTE DELIVERED AT THE 2020 CONFERENCE OF THE AFRICAN BAR ASSOCIATION HOLDING VIRTUALLY VIA NIAMEY, NIGER REPUBLIC FROM 9TH – 12TH NOVEMBER 2020.
PROTOCOLS:
I am extremely delighted to address you on this auspicious occasion of 2020 Annual Conference of our revered Association – African Bar Association holding virtually via historic city Niamey Niger Republic. The theme of this year’s conference is apt and truly relevant. It is “Resetting Africa’s socio- economic and political agenda post COVID 19 Era – How lawyers can lead”. The world around us has changed so significantly since the last conference in October 2019, that this year we are having an online conference. I want to thank the organizers for going ahead to put this auspicious event together despite the challenging times faced by Africa and the world at large.
2. Learned friends, distinguished ladies and gentlemen, let me start my intervention by saying a very big thank you to the leaders and members of the Bar for keeping alive this precious instrument and forum of the African Bar Association. I also thank you for inviting me to attend and to deliver this address. I have been to Niger several times in the past for security cooperation, educational activities, sports, trade, and commerce. What make this visit unique is the fact that, we are here to champion the resetting of African Agenda for growth and development post COVID 19 Pandemic. Countries in Africa are currently experiencing unprecedented effects of the Covid-19 pandemic, which has disrupted economies around the world and to also identify the opportunities, if any, this may present.
3. From the good people of Sokoto State, I bring to you fraternal greetings and warm felicitations. The AFBA has remained a relevant institution for protecting and advancing the human and democratic rights of the African people. It should stay focused on these lofty aspirations and ensure that governance in Africa is predicated on the rule of law economic efficiency. Social justice and individual liberty.
4. It should be borne in mind that despite incredibly lowest COVID-19 cases and death in Africa, the shock and impact of COVID-19 have over stretched Africa’s health care systems and plunge the continent into socio economic and political emergency. Apart from the impact on health and the population, the closure of Airports and halting of transportation due to lock down emergency measures put in place to contain the virus, the closure of educational institutions from Kindergarten to Universities, Courts of law and work places led to lower trade and investment, slump in demand associated with the lockdowns in the European Union and OECD countries; and logistics and supply shock upsetting domestic and intra-African trade.
5. The impact was so profound that even individual liberty was affected through measures restricting movement, social distancing and wearing of face mask and prohibition of public gatherings, official activities such as meetings and conferences and social interaction turned to online and virtual. In resetting Africa’s socio economic and political agenda, laws and policy measures must be recalibrated to ameliorate the hardship occasioned by loss of jobs, investments, and income. Recovery strategies should include a strong structural component to reduce dependence on external financial flows and global markets, and develop more value-addition, knowledge-intensive and industrialised economies, underpinned by a more competitive and efficient services sector.
6. Africa in 2019 had a Gross Domestic Product of $2.6 Trillion and data from the African Development Bank projected her to have a stable growth of 3.4%. The growth was estimated to pick up to 3.9% in 2020 and 4.1% in 2021. To put things in perspective, Africa presently accounts for around 17% of the world’s population, but only represents about 3% of the global GDP. This is a clear pointer to the fact that the continent has not done enough to harness its development potential, amidst the vast human and natural resources within her disposal.
7.. The economy of Africa is chequered, driven mostly by agriculture, commodity trade, industry, and human resources across 54 economically and politically diverse countries. Some economies such as Nigeria, Angola and Kenya are more volatile than others because of their over reliance on monolithic export commodities.
There is a cross-regional variation in the developmental growth of countries in Africa. According to the African Development Bank, East Africa in 2019 maintained its lead as the continent’s fastest growing region, with an average growth estimated at 5%. North Africa was indicated as the second fastest with a 4.1% growth. West Africa’s growth rose to 3.7% in 2019, from 3.4% the year before. Central Africa was projected to grow at 3.2% in 2019, from 2.7% the year before. Southern Africa’s growth slowed from 1.2% to 0.7%.
8. However, events in recent years have shown how susceptible African countries are prone to economic shocks and fluctuations in foreign currencies and commodity prices. Some are more vulnerable than others because their economies are dependent on the export of one or just a few commodities. When there is a downturn in commodity prices, mono-product economies such as Nigeria, Angola and Zambia accordingly suffer economic stagnation.
In Nigeria, the collapse in oil prices resulted in budget deficits and depleted foreign reserves, culminating in a recession which the country has emerged from but still struggles to sustain.
9. Foreign Direct Investment is indeed sought after by all countries considering the economic development and integrations into the global economy it fosters. However, because of the effects of the contraction of global markets and declining demand for commodities, FDI to African countries was already on the decline before the Covid-19 pandemic. According to a report of the United Nations Conference on Trade and Development there was a 10% drop in inflows to Africa in 2019. FDI inflows to North Africa generally decreased by 11%, with reduced inflows in all countries around the region except Egypt, which is the largest recipient of FDI in Africa in 2019. Southern Africa inflows decreased by 10% in 2019, despite significant inflow the previous year. Likewise, FDI to West Africa decreased by 21%, largely driven by new investment regulations for multinational enterprise in the oil and gas industry. The investment stock held by the United States and France declined by 15% and 5% respectively, while that of United Kingdom and China increased by 10% each.
10. Debt sustainability by African countries continues to be an issue of great concern to policy makers and Development Finance Institutions (DFI). Data from the World Bank report reveals that countries in Sub-Saharan Africa recorded the fastest accumulation of external debt stock in 2019. This is attributed to a corresponding rise in the debt of regional economies such as Nigeria with an increase in its external debt from $50.4 billion to $54.8 billion, and South Africa’s from $173 billion to $188.1 billion.
11. As it stands today, Total external debt stock in Africa reached $625 billion from $571 billion in the previous year, which is an increase of 8.64%. Much of this debt is being incurred through foreign currency denominated Eurobonds issued on international financial markets and therefore carrying a high risk of fluctuation from the exchange rate. 19 out of 54 African countries in Africa have exceeded the 60% debt-to- GDP threshold proposed by the African Monetary Co-operation Programme (AMCP) and 24 countries have surpassed the 55% debt–to-GDP ratio prescribed by the International Monetary Fund (IMF).
12. With the advent of COVID 19 Pandemic, the inflow of Remittances to African countries has significantly decreased. The World Bank reported that remittances to Sub-Saharan Africa grew by almost 10% in 2018 to about $46 billion and has been rising steeply year by year. Africans are one of the world’s most itinerant populations. A report by the United Nations showed that over 25 million African migrants were living outside their home countries.
13. Since 1960s when several African countries attained independence, there have been calls for better socio-economic integration and shift from the overreliance on export of primary commodities. This led to the establishment of the Organization of African Unity (OAU) in 1963. The OAU did not make much progress, but in 1991 it adopted the Treaty establishing the African Economic Community (AEC), also known as Abuja Treaty, designed to promote continental unity by means of harmonized economic policies among African states using Regional Economic Communities (RECs). To achieve better economic integration, other development agenda treaties such as the New Partnership for Africa’s Development (NEPAD), Agenda 2063 and African Continental Free Trade Area (AfCFTA) were established. The pursuit of the lofty ideals and objectives of these developmental agendas is even more needed now with the negative impact of COVID 19 Pandemic.
14.The main legal plank of achieving the new socio-economic rebirth of the continent is the African Free Continental Trade Area (AfCTA) which came into force on 30th May 2019. The aim is to create a single continent-wide market for goods and services and to promote the movement of capital and persons.
15. As the global economy is in turmoil due to the covid-19 pandemic, the AfCTA presents a huge opportunity to help African countries diversify their exports, accelerate growth, and attract foreign direct investment. According to statistics published by the United Nations Economic Commission for Africa (UNECA), the AfCTA is expected to expand the size of Africa`s economy to US$29 trillion by 2050.
16. When the AfCTA becomes fully operational, it would ensure the expansion of market access for African exporters of goods and services, spur growth, boost job creation and take millions out of poverty this will surely reduce the impact of COVID-19 pandemic on African economy.
17.. It is important to note that the two largest economies in Africa, Nigeria, and South Africa, have signed up with AfCTA. As of 2019, 31 countries out of the 55 member-States of AU have signed the Agreement. May I, therefore, use this opportunity to appeal to the African countries that have not endorsed the Agreement to do so without further delays. There is no doubt that the AfCTA will serve as an efficacious instrument for fast-tracking economic integration within Africa.
18.. As members of the continental Bar Association, you have a responsibility to ensure that there are no legal impediments that constrain member-States from enjoying the membership of the AfCTA.
18. What started as an outbreak in China towards the end of 2019 has now developed into a full-blown global pandemic causing the death of over 1.2M people worldwide, while disrupting our economic and social fabric. Africa recorded its first Covid-19 case in Egypt in February 2020 and since then the virus has spread to every corner of the continent, recording about 37,000 deaths and continuous number of infections. The World Health Organization (WHO) had predicted Africa to be the next epicentre of the Coronavirus, but yet to be fully understood reasons the virus has not been as vicious in Africa as envisaged, although we are not yet out of the woods.
19. Most African governments implemented social distancing guidelines, closure of schools, and bans on large crowds. Weeks of lockdown, restrictions on travel and closing of borders have also been implemented in a bid to stop the spread of the Coronavirus.
20. Freedom of movement and economic integration are the bedrock of the African Union’s Agenda 2063, which strives among other things to abolish visa requirement for all African citizens. However, the measures taken by countries in their bid to limit the spread of the coronavirus have proved to be antithetical to the continent’s integration agenda.
21.. With the adoption of the African Continental Free Trade Agreement (AfCFTA), intra-African trade is anticipated for the continent. However, the Covid-19 pandemic has hampered trade and investment opportunities and stirred up protectionism among countries. Likewise, the shutdown of businesses has had adverse effects on small and medium size enterprises that are expected to benefit from the free trade agreement.
22. The Covid-19 pandemic has also caused countries to look inwards and prioritize the welfare of their citizens, as against a need to seek common values with neighbouring countries.
23. The situation is tough while the future appears very grim, more so with the covid-19 pandemic which is ravaging the world. The current crisis has put us in a helpless situation with no evidence of any concrete efforts in the continent at developing any medical response to mitigate or control the spread of the pandemic. Our hope is that when an appropriate vaccine is produced Africa would have guaranteed access to it, to stem the tide of the pandemic.
24. In order r to tackle the profound consequences of COVID 19 Pandemic, we need strengthen regional value chains, reduce vulnerability to external shocks, advance the digital transition, and build economic resilience against future crises.
25. Lawyers need to take the lead in making convincing case to African Governments to fashion out context specific policy measures that will not only address the challenges posed by COVID 19 by ensuring containment. Undertaking of safety measures, development of a vaccine but stimulating growth and development through incentives to investors, stimulus to the private sector in all its ramification, and palliatives to the poor and vulnerable.
26. Loan repayments are recommended to be rescheduled; while bad ones need to be forgiven and interest rates revised. Investment, business, commercial and trade laws should be reviewed, amended and updated to ensure that all barriers to business and trade, quantitative restrictions and measures of equivalent effects are dismantled so at to create conducive environment for ease of doing business. African countries are encouraged to reduce custom duties and tariffs to facilitate trade and investment.
27.. Pre COVID-19, African continent was bedevilled by pervasive youth unemployment. The situation was made worse by the impact of COVID 19 when many more were rendered idled because of loss of jobs and closure of schools. The Nigerian experience of ENDSARS campaigned which also brought the nation to its knees readily comes to mind here. If we must make any meaningful progress with the economic repositioning of the continent, we must seriously address the problem of youth unemployment.
30. At this juncture permit me, to take a few minutes and share with you, the experience of Government of Sokoto State Nigeria where yours sincerely is leading in handling and managing COVID-19 19 pandemic in the State. First, we established a taskforce team of health experts under the leadership of the commissioner for health that led the operation for the sensitization, testing and case management of patient afflicted by the disease. The legal experts led by the Attorney General came up with a Regulation, Sokoto State Infectious Disease Regulation 2020 under the Sokoto State Public Health Law 1985 as amended. Support and cooperation of security and traditional institution was immediately enlisted and deployed. The Government procured facemask and hand sanitizers and distributed them freely to the people.
31.. Furthermore, a locally fabricated hand washing equipment was developed in conjunction with UNICEF and install in most public places., Testing centres were set up at all entry points into the state. More isolation centres were established at Amanawa. Other Isolation centres were set up at Usman Danfodio University Hospital, special hospital Sokoto and Catholic Hospital, Sokoto. The setting up rapid response teams with 254 ambulances with 10 operating in the capital city and 244 Electoral Wards in the State attracted the commendation of the Federal Minster of Health and members of his team.
32. Equally worthy of mention here, were the efforts of over 1000 health and non-health works in the state for the sensitization of the local communities. Contact tracing was massively understand thanks to the support of the National Electoral Body for making available vehicle and their drives for the exercise. Online Radio lessons and lectures were organised and sponsored by the State Government before the opening of school to enable students continue with their studies during the peak of the pandemic. Micro, Small and Medium enterprises were support with interest free loans to stimulate the economy and save jobs. Tax holidays were granted and payment of water rate to the government was suspended. Palliatives were distributed by both state and federal government, business organisation and NGO’s to the weak and vulnerable in the society.
33. Moving forward and going beyond covid-19, I am convinced that our African countries needs to improve health care services by investing in research and development, equipping of medical facilities, building of more hospital infrastructure and human capital development. This what we are set to achieve in Sokoto State by our continuous investment in primary health care, building of a new 950 bed capacity State University Teaching Hospital, 200 hundred bed capacity multi-speciality and diagnostic centre as well as three other 150 bed capacity premier hospital in the State.
34. We need to also improve our transport and communication infrastructure so that we can get better access to people within the country and across the region. The world is going totally digital and Covid-19 has demonstrated the necessity and feasibility of a digital world. Indeed, government and businesses need to take deliberate steps to digitalize their operations in compliance with the new normal.
CONCLUSION
35. As lawyers, who are trained to promote the rule of law and ensure that the society is governed in accordance with the laws, we have a bounden responsibility to speak out on the side of the people. For far too long, our continent has continued to lag on all known indices of human development. Yet after over 60 years, after political independence, Africa ought to have made the desired impact! Regrettably, we have continued to wallow in economic underdevelopment.
36. As you commence deliberations, I urge all of you to duly reflect on the theme of this conference which is “Resetting Africa`s Socio-Economic and Political Agenda in Post Covid-19 Era”. Given the fact that no meaningful progress has been made since, after the political decolonization of the continent, there is the need for us to reset the agenda to align with the current socio-economic and political realities. And as Lawyers, how can we lead?
37. The new political agenda, in my considered view, should focus on democratisation and human rights. The rule of strong men and military dictatorship which was the hallmark of leadership for an exceptionally long time in our continent did not lead to sustainable progress. It never advanced the fortunes of our people. Rather, it took us several years back without any meaningful development to show for it. The world has moved on with democracy and rule of law especially in this age of globalization. We cannot afford to be left behind.
38. This is the time to insist that every State in Africa must be governed according to the wishes of the people and dictates of the Constitution. Democracy promotes political inclusiveness and rule of law. We must, therefore, say No to arbitrariness in governance. Given our training as lawyers, we are better positioned to fight against arbitrary exercise of power by elected leaders in the continent.
39. Lawyers must also lead to ensure right policies are put in place, to engender effective business support, capacity building, imbibe technology and product innovation and access to sufficient financing of small and medium enterprises so as to improve employment generation, enhance productivity, and promote social inclusion. Macro-economic objectives of any nation such as job creation, mobilization of local resources, ease of doing business; rural urban drift and poverty alleviation cannot be realized without supporting and improving the capacities and competitiveness of Micro, Small and Medium Enterprises nay the growth and development of the nations’ economy.
40. The Covid-19 pandemic has dealt a heavy blow to the efforts made by the continent towards integration and harmony. How we respond as a continent will determine how quickly we will get back on track, failure of which we risk reversing the gains achieve over the years. This presents an opportunity for the continent to recommit itself to the path of sustainable development goals. African lawyers must lead must strive to make Africa a free a democratic, continent, a just and egalitarian society, and a land full of opportunities for citizens.
Long live Africa and God bless the African Bar Association
Thank you for your attention and listening.