Peter Obi advocates fiscal discipline at African unity colloquium

In a compelling keynote address delivered at the Inaugural Colloquium on Governance, Trade and African Unity, the 2023 presidential candidate of the Labour Party, Peter Obi, called for a paradigm shift in Africa’s fiscal management.

Speaking to an audience of scholars and industry leaders, Obi emphasized the urgent need for African governments to adopt stringent fiscal discipline and effective resource management to foster economic stability and growth across the continent.

Drawing parallels with the economic trajectories of nations like China, India, Indonesia, and Vietnam, Obi highlighted the stark contrast in poverty reduction outcomes. He pointed out that while these countries have successfully lifted significant portions of their populations out of poverty through disciplined fiscal policies and resource management, Africa has seen an increase in poverty levels due to fiscal indiscipline and misappropriation of funds.

Obi’s speech underscored the alarming statistics that sub-Saharan Africa harbors over 60% of the world’s extremely poor population, along with a majority of out-of-school children and unemployed youth. He argued that this trend is a direct result of the continent’s fiscal irresponsibility and consumption-driven investments.

To reverse this trend, Obi urged African leaders to prioritize investments in productivity, particularly in the health and education sectors, and to create jobs that would lift people out of poverty. He advocated for a shift from consumption to production, stating that such a move is essential for the continent’s economic growth and development.

The former Anambra governor’s message was clear: Africa must embrace strict fiscal discipline to ensure that all available resources are channeled towards productive endeavors. By doing so, Obi believes that Africa can build a new and better future for its people, one that will allow the continent to take its rightful place among the developed regions of the world.

Obi’s call to action resonates with the aspirations of many across the continent who yearn for a new era of economic prosperity and stability. His words serve as a rallying cry for African unity and progress, urging leaders and citizens alike to work together towards a common goal of uplifting the continent.

He wrote, “Yesterday, I was in Kenya to honor an invitation to the Inaugural Colloquium on Governance, Trade and African Unity where I delivered a Keynote Address on Fiscal Discipline in Governance: Strategies for Economic Stability and Growth in Africa.

“I used the occasion to emphasize that governments in Africa must now, as a matter of priority, ensure appropriate fiscal discipline and effective management of their resources for productivity.

“African leaders cannot continue with the fiscal indiscipline that has led to unproductivity and consumption which has led to unserviceable debts, unemployment, and inflation, which has impoverished our people.

“While progressive and rapidly growing economies like China, India, Indonesia, and Vietnam have been able to pull many of their people out of poverty through fiscal discipline and prudent management of their resources, Africa has thrown more people into poverty due to fiscal indiscipline and misappropriation of funds. Consequently, sub-Saharan Africa is home to over 60% of extremely poor people, 60% of out-of-school children, and 60% of youth unemployment.

“Strict fiscal discipline must now be followed to ensure that all available resources are employed towards productivity in health, and education and pulling people out of poverty through job creation.

“We must, henceforth, stop investing in consumption and start investing in production for the economic growth and development of Africa. By so doing, we will be able to build a New and better Africa that will be beneficial to every African and that will rightfully take its place among other developed continents of the world.”

See pictures from the event below: