Africa Debate 2021 forum to begin today
Today will be the start of the Africa Debate 2021, a three-day forum which serves as a platform for regional leaders to formulate discussion around continental economic growth.
The conference, labeled the ‘Great Reset’, will center around improving African states’ status as emerging economies following the COVID-19 pandemic. As Africa attempts to stave off an estimated 3 to 5.4% pandemic-related contraction in GDP across the continent, recovery funds for African governments nevertheless equal less than 1% of stimulus deployed in the wealthiest developed nations.
Expect today’s conference to formulate strategies for attracting international investment and private-sector participation to boost job creation. The recent loan from India’s Exim Bank worth $100 million will go towards improving infrastructure while a $23.61 billion IMF allocation to Sub-Saharan Africa will likely be used to support micro, small and medium-sized enterprises (MSMEs). Providing 83% of private sector jobs, MSMEs will likely receive targeted economic assistance through subsidizing suppliers and providing tax breaks, although 70% of MSMEs operate in the informal economy. In the long term, governments will seek to use the fortified MSMEs as a means of growing tax bases through job creation in order to boost national revenue growth.
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