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Ruth Butaumocho African Agenda

MORE than 50 heads of state and government, finance ministers, governors of central banks, trade and foreign ministers from all over the world last week gathered in Davos, Switzerland to discuss economic sustainability of member countries against global adversities.

As has become the norm, the delegates who convened in the Swiss Alpes did so fully aware that whatever deliberations they would hold, they would need to be cognisant of several calamities under which most economies were battling under.

This time around, the leaders attended the global convention under a “fragmented world” which is battling with effects of climate change, energy price chaos, inflation, consequential effects of Covid-19, epidemics of diseases, widening economic inequity and the impact of the Russia and Ukraine conflict on food prices.

However, despite a well-documented list of setbacks delegates had to contend with, what came out clear among other positive affirmations was that the African continent still possesses what it takes to grow exponentially.

Most of the delegates in sessions which were discussing economic issues around Africa concurred that the projected growth would be achieved once continental leaders focus on developing women and the youth.

Speaking during one of the sessions dubbed “Realising Africa’s Century session,” the Prime Minister of Tunisia, Najla Bouden, said Africa’s biggest potential was in its youth and its children.

During the deliberations, she highlighted the aspiration 6 of the African Union’s Agenda 2063, which envisions an Africa, “whose development is people-driven, relying on the potential of African people, especially its women and youth, and caring for children”.

“African women and young people must be encouraged to become start-up entrepreneurs and supported through capacity building.”

Bouden’s sentiments affirms the position that most development agents have been agitating for — the inclusion of women and youth in the economic matrix of Africa, because of their role in economic activities mainly in the informal sector.

In one of its many studies, the Centre for Strategic and International Studies revealed that in Africa, micro, small and medium enterprises — domain for women and youth, provide an estimated 80 percent of jobs across the continent, representing an important driver of economic growth.

Sub-Saharan Africa alone has 44 million small and medium enterprises, almost all of which are micro.

To buttress the role of women in the continental economy, the MasterCard Index of Women Entrepreneurs (MIWE) 2021 says Sub-Saharan Africa, in particular, has the world’s highest rate of women involved in entrepreneurial activity at 26 percent.

Further research also shows that women make up 58 percent of Africa’s self-employed population and are more likely to become entrepreneurs than men.

Even on a global scale, the World Economic Forum notes that the female economy is considered the world’s largest emerging market, which has the potential to contribute $12 trillion to global gross domestic product by 2025.

Notwithstanding other economic paradigms in individual member states, this sector has actually become the backbone of the continent’s economy, creating thousands of jobs and generating wealth across.

A cursory walk in any part of the continent one is confronted by hordes of people, mainly women and youth, selling all sorts of wares ranging from food to toothpicks.

Small but well-strategically positioned factories that manufacture anything from toothpicks to building material for both residential and commercial purpose are a common feature in any city in Africa.

Hordes of youths, straight from universities and colleges are now running successful start-ups and viable income-generating projects particularly in information communication technology sector as well as agro-related projects to ease the problem of unemployment.

Their activities may appear small, but the revenue they generate is quite significant, and this probably explains why Bouden wants women and young people to be encouraged to become start-up entrepreneurs and supported through capacity building.

The crucial role of female led start-ups in Africa calls for African governments and policymakers to address the socio-cultural constraints that limit women founders’ growth potential and reduce their engagement in the African start-up space.

The governments can design implement a wide range of reforms, projects, programmes, financing instruments, platforms and incentives schemes to address structural barriers to women’s economic empowerment.

Tailored- financial packages that do not require collateral security, stringent borrowing conditions and a short time in approving loan applications should be the first step towards empowering women in entrepreneurship.

This can be done by using specialised financing frameworks such as gender responsive budgeting to ensure that women’s aspirations are incorporated into national financing decisions.

In Gabon, Nigeria, Malawi and Zimbabwe governments have warmed up to gender-responsive budgeting.

They have begun implementing some of the recommendations to ensure policy commitments related to poverty reduction and gender equality are reflected in budget allocations.

In the case of Zimbabwe, Gender Links has been working will all the country’s local authorities by teaching them how to integrate gender-related issues when budgeting for all their products and services.

Once all the local authorities are conversant with gender-responsive budgeting, the initiative will then be mainstreamed in national budgeting processes.

There is also room and scope to utilise the recently launched African Continental Free Trade Agreement (AfCFTA), to create space and opportunities for women and youth so that they take their entrepreneurial skills to another level.

AfCFTA could not have come at a better time, for a continent that had been getting a raw deal in trade deals, particularly with the West.

Its limited ability to get the right pricing for its goods and services when trading with other continent was choking economic growth in Africa, whittling business opportunities and demotivating small businesses and start-ups.

This will no longer be the case, because barely three years after its launch, AfCFTA has begun to take shape, amid revelations that several African countries are trading successfully under the platform.

Last year, Kenya shipped locally-made car and truck batteries as well as a consignment of Kenyan-grown tea to Ghana. On the other hand, Rwanda also exported processed coffee beans to the West African nation.

At that pace, there is hope of increased trade from various countries, which could result in a boon in trade in the continent, whose spin-offs will naturally cascade to women and the youth.

This trade platform can be one of the most effective channels to develop an enfranchising environment for female founders, allowing African women entrepreneurs to expand their businesses across the continent.

We believe that ideas put on the table during these high flying conferences should not gather dust, but should be implemented at the earliest opportunity so that the brand Africa grows with each new concept.

With its efforts in maintaining peace and security, a youthful population and abundant natural resources, there is no doubt that Africa will in the next few years emerge as a new global centre of economic growth that is increasingly sought after by the world’s biggest economies.

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