How Africa can keep rising
-
0:00 - 0:04The narrative of a rising Africa
is being challenged. -
0:04 - 0:09About 10 years ago,
I spoke about an Africa, -
0:09 - 0:12an Africa of hope and opportunity,
-
0:12 - 0:13an Africa of entrepreneurs,
-
0:14 - 0:17an Africa very different from the Africa
that you normally hear about -
0:17 - 0:20of death, poverty and disease.
-
0:20 - 0:22And that what I spoke about,
-
0:22 - 0:27became part of what is known now
as the narrative of the rising Africa. -
0:27 - 0:31I want to tell you two stories
about this rising Africa. -
0:31 - 0:32The first has to do with Rwanda,
-
0:33 - 0:36a country that has gone
through many trials and tribulations. -
0:36 - 0:40And Rwanda has decided to become
the technology hub, or a technology hub -
0:40 - 0:42on the continent.
-
0:42 - 0:45It's a country with mountainous
and hilly terrain, -
0:45 - 0:46a little bit like here,
-
0:46 - 0:49so it's very difficult
to deliver services to people. -
0:49 - 0:51So what has Rwanda said?
-
0:51 - 0:55In order to save lives,
it's going to try using drones -
0:55 - 0:58to deliver lifesaving drugs,
vaccines and blood -
0:58 - 1:00to people in hard-to-reach places
-
1:00 - 1:02in partnership with
a company called Zipline, -
1:03 - 1:07with UPS, and also with the Gavi,
a global vaccine alliance. -
1:07 - 1:09In doing this, it will save lives.
-
1:09 - 1:15This is part of the type of innovation
we want to see in the rising Africa. -
1:15 - 1:17The second story has to do with something
-
1:17 - 1:20that I'm sure most of you
have seen or will remember. -
1:20 - 1:24Very often, countries in Africa
suffer drought and floods, -
1:24 - 1:28and it's getting more frequent
because of climate change effects. -
1:28 - 1:34When this happens, they normally wait
for international appeals to raise money. -
1:34 - 1:37You see pictures of children
with flies on their faces, -
1:37 - 1:40carcasses of dead animals and so on.
-
1:40 - 1:43Now these countries,
32 countries, came together -
1:43 - 1:45under the auspices of the African Union
-
1:45 - 1:50and decided to form an organization
called the African Risk Capacity. -
1:50 - 1:51What does it do?
-
1:51 - 1:54It's a weather-based insurance agency,
-
1:54 - 1:58and what these countries do
is to pay insurance each year, -
1:58 - 2:01about 3 million dollars a year
of their own resources, -
2:01 - 2:06so that in the event they have
a difficult drought situation or flood, -
2:06 - 2:08this money will be paid out to them,
-
2:08 - 2:11which they can then use
to take care of their populations, -
2:11 - 2:14instead of waiting for aid to come.
-
2:14 - 2:18The African Risk Capacity
last year paid 26 million dollars -
2:18 - 2:21to Mauritania, Senegal and Niger.
-
2:21 - 2:26This enabled them to take care
of 1.3 million people affected by drought. -
2:26 - 2:29They were able to restore livelihoods,
-
2:29 - 2:31buy fodder for cattle,
feed children in school -
2:31 - 2:37and in short keep the populations home
instead of migrating out of the area. -
2:37 - 2:39So these are the kinds of stories
-
2:39 - 2:43of an Africa ready
to take responsibility for itself, -
2:43 - 2:46and to look for solutions
for its own problems. -
2:46 - 2:48But that narrative is being challenged now
-
2:48 - 2:53because the continent has not
been doing well in the last two years. -
2:53 - 2:56It had been growing
at five percent per annum -
2:56 - 2:58for the last one and a half decades,
-
2:58 - 3:01but this year's forecast
was three percent. Why? -
3:01 - 3:05In an uncertain global environment,
commodity prices have fallen. -
3:05 - 3:08Many of the economies
are still commodity driven, -
3:08 - 3:11and therefore their
performance has slipped. -
3:11 - 3:15And now the issue of Brexit
doesn't make it any easier. -
3:15 - 3:19I never knew that the Brexit could happen
-
3:19 - 3:23and that it could be one of the things
that would cause global uncertainty -
3:23 - 3:25such as we have.
-
3:25 - 3:27So now we've got this situation,
-
3:27 - 3:30and I think it's time to take stock
-
3:30 - 3:35and to say what were the things
that the African countries did right? -
3:35 - 3:36What did they do wrong?
-
3:37 - 3:39How do we build on all of this
and learn lessons -
3:39 - 3:42so that we can keep Africa rising?
-
3:43 - 3:46So let me talk about six things
that I think we did right. -
3:47 - 3:50The first is managing
our economies better. -
3:50 - 3:54The '80s and '90s were the lost decades,
when Africa was not doing well, -
3:54 - 3:58and some of you will remember
an "Economist" cover -
3:58 - 4:00that said, "The Lost Continent."
-
4:00 - 4:04But in the 2000s, policymakers learned
-
4:04 - 4:08that they needed to manage
the macroeconomic environment better, -
4:08 - 4:10to ensure stability,
-
4:10 - 4:13keep inflation low in single digits,
-
4:13 - 4:18keep their fiscal deficits low,
below three percent of GDP, -
4:18 - 4:22give investors, both domestic and foreign,
-
4:22 - 4:26some stability so they'll have confidence
to invest in these economies. -
4:26 - 4:27So that was number one.
-
4:27 - 4:29Two, debt.
-
4:29 - 4:35In 1994, the debt-to-GDP ratio
of African countries was 130 percent, -
4:35 - 4:37and they didn't have fiscal space.
-
4:37 - 4:40They couldn't use their resources
to invest in their development -
4:40 - 4:41because they were paying debt.
-
4:41 - 4:46There may be some of you in this room
who worked to support African countries -
4:46 - 4:47to get debt relief.
-
4:47 - 4:52So private creditors, multilaterals
and bilaterals came together -
4:52 - 4:56and decided to do the Highly Indebted
Poor Countries Initiative -
4:56 - 4:57and give debt relief.
-
4:57 - 4:59So this debt relief in 2005
-
4:59 - 5:03made the debt-to-GDP ratio
fall down to about 30 percent, -
5:03 - 5:07and there was enough resources
to try and reinvest. -
5:07 - 5:09The third thing was
loss-making enterprises. -
5:09 - 5:11Governments were involved in business
-
5:11 - 5:14which they had no business being in.
-
5:14 - 5:17And they were running businesses,
they were making losses. -
5:17 - 5:20So some of these enterprises
were restructured, -
5:20 - 5:22commercialized, privatized or closed,
-
5:22 - 5:25and they became
less of a burden on government. -
5:26 - 5:28The fourth thing
was a very interesting thing. -
5:29 - 5:31The telecoms revolution came,
-
5:32 - 5:34and African countries jumped on it.
-
5:34 - 5:37In 2000, we had 11 million phone lines.
-
5:37 - 5:42Today, we have about 687 million
mobile lines on the continent. -
5:42 - 5:44And this has enabled us
-
5:44 - 5:47to go, move forward
with some mobile technology -
5:47 - 5:49where Africa is actually leading.
-
5:49 - 5:52In Kenya, the development
of mobile money -- -
5:52 - 5:55M-Pesa, which all of you
have heard about -- -
5:55 - 5:58it took some time for the world
to notice that Africa was ahead -
5:58 - 6:00in this particular technology.
-
6:00 - 6:03And this mobile money
is also providing a platform -
6:03 - 6:05for access to alternative energy.
-
6:05 - 6:09You know, people who can now pay for solar
-
6:09 - 6:13the same way they pay
for cards for their telephone. -
6:13 - 6:18So this was a very good development,
something that went right. -
6:18 - 6:23We also invested more
in education and health, not enough, -
6:23 - 6:24but there were some improvements.
-
6:24 - 6:30250 million children were immunized
in the last one and a half decades. -
6:31 - 6:34The other thing was
that conflicts decreased. -
6:34 - 6:36There were many conflicts
on the continent. -
6:36 - 6:37Many of you are aware of that.
-
6:37 - 6:42But they came down, and our leaders
even managed to dampen some coups. -
6:42 - 6:46New types of conflicts have emerged,
and I'll refer to those later. -
6:46 - 6:50So based on all this, there's also
some differentiation on the continent -
6:50 - 6:51that I want you to know about,
-
6:52 - 6:54because even as
the doom and gloom is here, -
6:54 - 6:58there are some countries --
Côte d'Ivoire, Kenya, Ethiopia, -
6:58 - 7:02Tanzania and Senegal are performing
relatively well at the moment. -
7:03 - 7:05But what did we do wrong?
-
7:05 - 7:07Let me mention eight things.
-
7:07 - 7:09You have to have
more things wrong than right. -
7:09 - 7:10(Laughter)
-
7:10 - 7:13So there are eight things we did wrong.
-
7:13 - 7:16The first was that even though we grew,
we didn't create enough jobs. -
7:17 - 7:19We didn't create jobs for our youth.
-
7:19 - 7:22Youth unemployment on the continent
is about 15 percent, -
7:22 - 7:25and underemployment is a serious problem.
-
7:25 - 7:31The second thing that we did is that
the quality of growth was not good enough. -
7:31 - 7:34Even those jobs we created
were low-productivity jobs, -
7:35 - 7:38so we moved people
from low-productivity agriculture -
7:38 - 7:42to low-productivity commerce
and working in the informal sector -
7:42 - 7:44in the urban areas.
-
7:44 - 7:48The third thing
is that inequality increased. -
7:49 - 7:54So we created more billionaires.
-
7:54 - 7:5650 billionaires worth 96 billion dollars
-
7:56 - 8:01own more wealth than the bottom
75 million people on the continent. -
8:02 - 8:03Poverty,
-
8:04 - 8:08the proportion of people in poverty --
that's the fourth thing -- did decrease, -
8:08 - 8:12but the absolute numbers did not
because of population growth. -
8:12 - 8:15And population growth is something
-
8:15 - 8:18that we don't have enough
of a dialogue about on the continent. -
8:18 - 8:21And I think we will need
to get a handle on it, -
8:21 - 8:24particularly how we educate girls.
-
8:25 - 8:29That is the road to really working
on this particular issue. -
8:30 - 8:37The fifth thing is that we didn't invest
enough in infrastructure. -
8:37 - 8:39We had investment from the Chinese.
-
8:39 - 8:42That helped some countries,
but it's not enough. -
8:42 - 8:45The consumption of electricity
in Africa on the continent -
8:45 - 8:49in Sub-Saharan Africa
is equivalent to Spain. -
8:49 - 8:52The total consumption
is equivalent to that of Spain. -
8:53 - 8:55So many people are living in the dark,
-
8:55 - 8:59and as the President of the African
Development Bank said recently, -
8:59 - 9:01Africa cannot develop in the dark.
-
9:02 - 9:04The other thing we have not done
-
9:04 - 9:10is that our economies
retain the same structure -
9:10 - 9:11that we've had for decades.
-
9:11 - 9:13So even though we've been growing,
-
9:13 - 9:16the structure of the economies
has not changed very much. -
9:16 - 9:18We are still exporting commodities,
-
9:18 - 9:22and exporting commodities is what?
It's exporting jobs. -
9:22 - 9:26Our manufacturing value-added
is only 11 percent. -
9:26 - 9:30We are not creating enough
decent manufacturing jobs for our youth, -
9:30 - 9:33and trade among ourselves is low.
-
9:33 - 9:36Only about 12 percent of our trade
is among ourselves. -
9:36 - 9:39So that's another serious problem.
-
9:39 - 9:41Then governance.
-
9:41 - 9:44Governance is a serious issue.
-
9:44 - 9:46We have weak institutions,
-
9:46 - 9:51and sometimes nonexistent institutions,
and I think this gives way for corruption. -
9:51 - 9:56Corruption is an issue that we have not
yet gotten a good enough handle on, -
9:56 - 9:59and we have to fight tooth and nail,
-
9:59 - 10:02that and increased transparency
in the way we manage our economies -
10:02 - 10:05and the way we manage our finances.
-
10:05 - 10:10We also need to be wary of new conflicts,
-
10:10 - 10:11new types of conflicts,
-
10:12 - 10:15such as we have with Boko Haram
in my country, Nigeria, -
10:15 - 10:17and with Al-Shabaab in Kenya.
-
10:17 - 10:20We need to partner
with international partners, -
10:20 - 10:23developed countries,
to fight this together. -
10:23 - 10:25Otherwise, we create a new reality
-
10:25 - 10:28which is not the type
we want for a rising Africa. -
10:28 - 10:32And finally, the issue of education.
-
10:32 - 10:35Our education systems
in many countries are broken. -
10:35 - 10:40We are not creating the types of skills
needed for the future. -
10:40 - 10:42So we have to find a way
to educate better. -
10:43 - 10:46So those are the things
that we are not doing right. -
10:46 - 10:49Now, where do we go from there?
-
10:49 - 10:54I believe that the way forward
is to learn to manage success. -
10:54 - 10:58Very often, when people succeed
or countries succeed, -
10:58 - 11:00they forget what made them succeed.
-
11:01 - 11:03Learning what you're successful at,
-
11:03 - 11:06managing it and keeping it
is vital for us. -
11:06 - 11:08So all those things I said we did right,
-
11:08 - 11:12we have to learn to do it right again,
keep doing it right. -
11:12 - 11:15Managing the economy while
creating stability is vital, -
11:15 - 11:19getting prices right,
and policy consistency. -
11:19 - 11:21Very often, we are not consistent.
-
11:21 - 11:24One regime goes out, another comes in
-
11:24 - 11:27and they throw away even the functioning
policies that were there before. -
11:27 - 11:28What does this do?
-
11:28 - 11:31It creates uncertainty
for people, for households, -
11:31 - 11:32uncertainties for business.
-
11:32 - 11:35They don't know whether and how to invest.
-
11:35 - 11:39Debt: we must manage
the success we had in reducing our debt, -
11:39 - 11:42but now countries
are back to borrowing again, -
11:42 - 11:45and we see our debt-to-GDP ratio
beginning to creep up, -
11:45 - 11:47and in certain countries,
-
11:47 - 11:49debt is becoming a problem,
so we have to avoid that. -
11:49 - 11:51So managing success.
-
11:51 - 11:53The next thing
is focusing with a laser beam -
11:53 - 11:55on those things we did not do well.
-
11:55 - 11:57First and foremost is infrastructure.
-
11:57 - 12:01Yes, most countries now recognize
they have to invest in this, -
12:01 - 12:03and they are trying to do
the best they can to do that. -
12:03 - 12:05We must.
-
12:05 - 12:06The most important thing is power.
-
12:06 - 12:09You cannot develop in the dark.
-
12:09 - 12:11And then governance and corruption:
-
12:11 - 12:12we have to fight.
-
12:12 - 12:15We have to make our countries transparent.
-
12:15 - 12:19And above all, we have to
engage our young people. -
12:19 - 12:21We have genius in our young people.
-
12:21 - 12:22I see it every day.
-
12:22 - 12:26It's what makes me wake up
in the morning and feel ready to go. -
12:26 - 12:28We have to unleash
the genius of our young people, -
12:28 - 12:31get out of their way,
support them to create and innovate -
12:31 - 12:33and lead the way.
-
12:33 - 12:35And I know that they will lead us
in the right direction. -
12:35 - 12:37And our women, and our girls:
-
12:37 - 12:41we have to recognize
that girls and women are a gift. -
12:41 - 12:42They have strength,
-
12:42 - 12:44and we have to unleash that strength
-
12:44 - 12:47so that they can
contribute to the continent. -
12:47 - 12:51I strongly believe
that when we do all of these things, -
12:51 - 12:54we find that the rising Africa narrative
-
12:54 - 12:56is not a fluke.
-
12:56 - 12:57It's a trend.
-
12:58 - 13:02It's a trend, and if we continue,
if we unleash our youth, -
13:02 - 13:03if we unleash our women,
-
13:03 - 13:05we may step backwards sometimes,
-
13:05 - 13:07we may even step sideways,
-
13:07 - 13:08but the trend is clear.
-
13:09 - 13:11Africa will continue to rise.
-
13:11 - 13:14And I tell you businesspeople
in the audience, -
13:14 - 13:18investment in Africa is not for today,
is not for tomorrow, -
13:18 - 13:21it's not a short-term thing,
it's a longer term thing. -
13:21 - 13:23But if you are not invested in Africa,
-
13:24 - 13:25then you will be missing
-
13:25 - 13:29one of the most important
emerging opportunities in the world. -
13:29 - 13:30Thank you.
-
13:30 - 13:33(Applause)
-
13:39 - 13:42Kelly Stoetzel: So you mentioned
corruption in your talk, -
13:42 - 13:45and you're known, well-known
as a strong anticorruption fighter. -
13:45 - 13:48But that's had consequences.
-
13:48 - 13:51People have fought back,
and your mother was kidnapped. -
13:51 - 13:53How have you been handling this?
-
13:53 - 13:55Ngozi Okonjo-Iweala:
It's been very difficult. -
13:55 - 14:00Thank you for mentioning
the issue of the kidnap of my mother. -
14:00 - 14:02It's a very difficult subject.
-
14:02 - 14:06But what it means
is that when you fight corruption, -
14:06 - 14:10when you touch the pockets
of people who are stealing money, -
14:10 - 14:12they don't just keep quiet.
-
14:12 - 14:15They fight back, and the issue for you
is when they try to intimidate you, -
14:15 - 14:19do you give up, or do you fight on?
-
14:19 - 14:22Do you find a way
to stay on and fight back? -
14:22 - 14:26And the answer that I had
with the teams I worked with -
14:26 - 14:28is we have to fight on.
-
14:28 - 14:30We have to create those institutions.
-
14:30 - 14:33We have to find ways to stop these people
-
14:33 - 14:36from taking away
the heritage of the future. -
14:36 - 14:38And so that's what we did.
-
14:38 - 14:42And even out of government,
we continued to make that point. -
14:42 - 14:46In our countries, nobody,
nobody is going to fight corruption -
14:46 - 14:47for us but us.
-
14:47 - 14:50And therefore,
that comes with consequences, -
14:50 - 14:52and we just have to do the best we can.
-
14:52 - 14:55But I thank you and thank TED
for giving us a voice -
14:55 - 14:58to say to those people, you will not win,
-
14:58 - 15:01and we will not be intimidated.
-
15:01 - 15:02Thank you.
-
15:02 - 15:03(Applause)
-
15:03 - 15:07Kelly Stoetzel: Thank you so much
for your great talk and important work. -
15:07 - 15:10(Applause)
- Title:
- How Africa can keep rising
- Speaker:
- Ngozi Okonjo-Iweala
- Description:
-
African growth is a trend, not a fluke, says economist and former Finance Minister of Nigeria Ngozi Okonjo-Iweala. In this refreshingly candid and straightforward talk, Okonjo-Iweala describes the positive progress on the continent and outlines eight challenges African nations still need to address in order to create a better future.
- Video Language:
- English
- Team:
- closed TED
- Project:
- TEDTalks
- Duration:
- 15:23
Brian Greene edited English subtitles for How Africa can keep rising | ||
Brian Greene edited English subtitles for How Africa can keep rising | ||
Brian Greene edited English subtitles for How Africa can keep rising | ||
Brian Greene edited English subtitles for How Africa can keep rising | ||
Brian Greene approved English subtitles for How Africa can keep rising | ||
Brian Greene accepted English subtitles for How Africa can keep rising | ||
Joanna Pietrulewicz edited English subtitles for How Africa can keep rising | ||
Joseph Geni edited English subtitles for How Africa can keep rising |