Posted on November, 25, 2024 at 08:13 am
African researchers have presented critical insights and recommendations to address key challenges bedevilling African economies.
The recommendations include financial development and sovereign borrowing regarding agricultural policies and food security. The researchers made the presentations on Sunday at the ongoing 2024 African Economic Conference in Gaborone, Botswana.
Their discussions shed light on the interconnectedness of financial mechanisms, governance, and agricultural practices in shaping the continent’s future.
Kamal Abdullahi, during a presentation on ‘Financial Development and Carbon dioxide (CO2) Emissions in Nigeria’ emphasised the dual challenge of promoting economic growth while mitigating environmental impact.
Mr Abdullahi restated the importance of boosting domestic credit for private investment to close financial gaps and drive economic development.
He further urged increased investment in renewable energy as a sustainable path to reduce CO2 emissions in Nigeria and the continent.
Gefei Zhou presented a paper on Sovereign Borrowing in Africa, addressing African nations’ challenges in accessing and managing eurobond financing.
She proposed improving sovereign credit ratings by enhancing governance and tackling inconsistencies in assessments by major credit rating agencies.
While speaking on agricultural expenditure efficiency and food security in Africa, Mzwanele Mfunwa, Economic Affairs Officer at the ECA, highlighted the intricate relationship between cash crop production and food crop investments.
Ms Mfunwa pointed to inefficiencies in government resource allocation, often favouring cash crops over food crops.
He said that while findings suggested that cash crop production could enhance food security, there were contradictions, particularly in Malawi and Kenya, where droughts have exacerbated food insecurity.
According to him, the structural inequities between support for commercial cash crop farmers and smallholder food crop producers further restate the need for policy reforms.
The presenters recommended treating policies to incentivise renewable energy projects and conducting comparative studies with other developing nations to strengthen the robustness of research findings.
The speakers also called for analysing structural changes over time to account for economic shifts and ensuring the precision of methodologies to avoid flawed policy implications.
They urged governments to integrate food crop production into foreign exchange policies derived from cash crops, ensuring equitable resource allocation.
Source: Peoples Gazzette