The eighth Tokyo International Conference on African Development comes at a moment of profound global change. The COVID-19 pandemic is still with us, reversing development gains and ravaging government balance sheets. At the same time, the global climate emergency continues unabated, and the ongoing war in Ukraine threatens to unleash a combined global food, energy and financial crisis. For millions across the continent, the food they could afford yesterday is no longer attainable today. As a new report by the United Nations Development Programme shows, 71 million people in developing countries fell into poverty in the first three months of the Ukraine war — a much faster rate than during the pandemic.
For the first time in 25 years, most African countries face the prospect of protracted financial and socioeconomic hardship. This is extremely concerning, given that the continent was witnessing remarkable progress in economic growth and human development in recent years. This year, over half of African countries were categorized as high- or middle-income, and the continent’s return on foreign direct investment was 11.4%, well above the global average of 7.1%.
While the socioeconomic ramifications of the pandemic and the war in Ukraine are already substantial and the situation remains unpredictable, we have the opportunity to turn the current crises into opportunity. Africa can rechart its development trajectory by deepening and strengthening strategic partnerships and breaking away from its cycle of dependency.
To navigate this new course, the continent needs a new lens that illuminates “development blind-spots.” Human security, an approach championed by Japan, could provide such a lens. The United Nations and key partners like Japan are using the human security concept to bring about positive action. Overall, a renewed focus on human security could provide a new path for Africa’s development that would enable African countries to capitalize on the opportunities presented by the current exogenous crises. Inexorably, this would move the continent toward “future-smart human security,” which UNDP has redefined in the Anthropocene era, and address the various insecurities and inequalities that persist in African communities.
Certainly, the private sector will be pivotal. Indeed, more and more businesses are looking for concrete ways to make a positive impact. This includes delivering quality jobs, expanding access to health care, driving climate action and promoting much-needed green and digital transformations.
An important lever in transforming Africa’s economies is leveraging private finance and investment through the African Continental Free Trade Area (AfCFTA). African countries and their partners must take advantage of the world’s largest free trade area, which is expected to offer $2.5 trillion in combined gross domestic product. The AfCFTA provides a platform to raise the area’s low productivity, accelerate industrialization and promote higher investments.
Another key transformer is the rise of startups and innovations from Africa. Funding to these topped $1.2 billion in 2020, a sixfold increase in five years. This has created thriving regional firms, such as Kenya’s mobile money solution M-Pesa and online retail giant Jumia, which represent what the continent’s vibrant business sector is capable of. Startups and innovation can boost access to digital technology for Africa’s budding entrepreneurs and accelerate the attainment of the sustainable development goals across the continent. Young Africans are a potent and dynamic force for change, accounting for over 60% of the continent’s population. Africa’s digital economy could contribute nearly $180 billion to the region’s growth by the middle of the decade.
With TICAD 8 and Japan’s G7 presidency on the horizon, Japan’s role as a global tech leader is vital to support countries in rolling out crucial digital solutions — from finding innovative ways to strengthen health systems and resilience to boosting financial inclusion and tackling climate change.
TICAD 8 could play a vital role in coalescing action to support a development trajectory for African countries that is sustainable, robust and equitable. The summit is an essential catalyst at this critical juncture to promote multilateralism and public-private partnership through development cooperation, finance, trade and investment across the continent, calling for global solidarity.
Today, more than ever, Africa, Japan and their partners must seize and create new opportunities. TICAD 8 will be a timely occasion for African leaders and their Japanese counterparts to scale up existing partnerships by building a stronger, smarter, fairer and more sustainable Africa.