Nigeria’s Vice President Kashim Shettima has implored African leaders to work to increase the continent’s countries’ total $3.1 trillion Gross Domestic Product (GDP), representing a measly three percent of global GDP. general.
According to him, “the total gross domestic product of African countries together is just $3.1 trillion, less than 3 percent of global GDP.”
Mr Shettima, who delivered the charge during the African plenary session on economies of scale outside the current World Economic Forum (WEF) In Davos, Switzerland, he lamented that African trade was still around three percent of world trade.
“African trade is still around 3 percent of world trade. These indices must be reversed and increased. I think this is one of the key concerns of Africa’s economy of scale.
“It must be kept in mind that African economies remain largely primary and basic in nature, with considerable dependence on the global economy. Most countries on our continent are still known for their export of raw materials, minerals and food crops. “African economies understand that we must start adding value to primary products, such as cash crops, and move towards the manufacturing of secondary and tertiary products,” the vice president said.
Speaking briefly at the event held at Kurpark Village, Davos-Klosters, Shettima noted that it is for this reason that Africa is considered by leading analysts around the world as a growing economy in urgent need of investment and infrastructure.
However, he told African leaders that economies of scale “herald the ability to do more” by coming together and forming “a more formidable unit, with a bigger voice and stronger negotiating capabilities.”
He urged them to run faster and more determinedly to catch up with the rest of the world in eradicating extreme poverty on the continent and demonstrate that the continent could be a significant contributor to global productivity that can “better integrate with the rest of the world in a Era in which artificial intelligence and machine learning are redefining human interactions and existence.”
He continued: “Size matters in negotiations and scalability. And African nations need more productivity to improve the living standards of our people. We need more food, more affordable housing, a thriving textile sector to clothe our people, more energy, more social services for our poor and disempowered people, better and cheaper transportation systems. Our job is well done for us.
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“Bundling resources as African nations allows us to reduce the production costs of many of these needs for our people. “We need to achieve higher levels of efficiency in both our public and private sectors.”
The vice president noted that while the African trade deal is projected to boost the continent’s GDP by $450 billion over the next decade, the urgency of actualizing an African-scale economy is the reason behind the continent’s trade cooperation, as This is demonstrated by the African Continental Free Trade Agreement. Agreement (AfCFTA).
He applauded the idea of an economy of scale for Africa, calling it timely considering the fact that the continent is seen as the final frontier for development, with many opportunities presenting itself.
Vice President Shettima observed that the challenges facing Africa are not inconveniences, but opportunities for engagement, productivity and profitability, even as he pegged the continent’s infrastructure deficit at trillions of US dollars.
Highlighting some of the shortfall, he said: “A minimum of 51 new homes must be built. We need schools, stadiums, community centres, roads, rail networks, airports and water transport, technological enablement and major interventions in the energy sector, among others.
“Seen from space, Africa still appears as the darkest continent. This narrative can be changed through a combination of efforts and deep collaborations between us and the global community. However, I affirm that the greatest challenge is within ourselves.
“The concept of Africa Economy of Scale is therefore a wake-up call to all of us sitting here to take a great leap of faith, moving away from the usual sordid nicknames with which we have been identified, as a people and as a continent. It is necessary to prepare a much better Africa for our children and the unborn. In the information age, we can no longer hoard information and have small dreams that will not affect our world.”
Shettima further acknowledged the efforts made by young Africans to reposition the continent, saying that “they have created major technology-driven private sector organizations, some of which are unicorns, with over a billion dollars in terms of capitalization.
“The Pan African Payments and Settlement System (PAPSS) is a product of the technological prowess of our young professionals, working within a broader organizational structure. In the creative and artistic sectors, young Africans are making a profound impact on and beyond the continent. There has also been a big push in the outsourcing industry, for young Africans to show more relevance in targeting remote work around the world. The terrain is being redefined,” he added.
Stanley Nkwocha Senior Special Assistant to the President on Media and Communications (Office of the Vice President) January 18, 2024