Africa has been plagued by poverty, poor governance, and conflict for decades. Despite the continent's abundant natural resources, it has struggled to achieve sustainable development, with many African nations still heavily reliant on foreign aid and borrowing from institutions like the International Monetary Fund (IMF). The diaspora, which is estimated to be around 36 million strong, has the potential to drive growth and development on the continent. However, many Africans are leaving their home countries for better opportunities abroad, leading to a "brain drain" that deprives the continent of much-needed skills and expertise.
In this article, we will explore three potential solutions to the challenges facing Africa: stopping reliance on borrowing from the IMF, tapping into the potential of the united diaspora, and addressing the brain drain.
Stop Borrowing from the IMF
African countries have borrowed heavily from the IMF over the years, with loans often tied to austerity measures and conditions that have further hampered economic growth. The COVID-19 pandemic has only worsened the situation, with many African countries facing increased debt burdens and economic challenges. The IMF recently announced plans to increase its lending capacity to $1.1 trillion, with a focus on supporting low-income countries. However, many African leaders are calling for more sustainable solutions that do not involve continued reliance on borrowing.
The International Monetary Fund (IMF), world bank and all other institution are making African countries to jump through hoops with loans that can never be paid.
When other countries borrow from the IMF, they get it at 1.5% to 1.9% interest rate but when Africans borrow the same amount of money, we are made to pay 19% interest rate.
The people who do not need the break get the break and those who really need the break do not get it.
The sheer survival of the World Bank, IMF is based on the fact that African countries and many other developing countries do not succeed, their success is based on our failure.
The only way this can change is when Africa beings to rise up and tell them that we are not playing you their games anymore.
This is where the Diaspora comes in. There are more Doctors in New York City than the entire country of Ghana. There are more Nigerian Doctors in Los Angeles than in the entire country of Nigeria.
What Africa needs is capacity and that capacity is in the Diaspora. So, it will behoove as to bring the Diaspora together and let them understand what is really going on in Africa.
One potential solution is for African countries to explore alternative financing options, such as tapping into private capital markets or leveraging their natural resources. For example, Ethiopia has successfully issued sovereign bonds in the past, raising $1 billion in 2014 to fund infrastructure projects. Other African countries, such as Ghana and Senegal, have also successfully tapped into international capital markets to raise funds.
Another solution is for African countries to work together to pool resources and jointly finance projects. For example, the African Union has launched the African Continental Free Trade Area (AfCFTA), which aims to boost intra-African trade and investment. By working together, African countries can reduce their reliance on external borrowing and build more sustainable economies.
Tapping into the Potential of the United Diaspora
The African diaspora is estimated to be around 36 million strong, with many Africans living in the United States, Europe, and other parts of the world. The diaspora has the potential to play a significant role in driving growth and development on the continent, through remittances, investment, and skills transfer. According to the World Bank, remittances to sub-Saharan Africa totaled $48 billion in 2020, making it the most significant source of external financing for many countries.
The Diaspora is not going back home and is angry with Africa because they are not understanding the root cause of why Africa is like this today.
The truth is that Presidents will not take care of the problems, they are going to be replaced by others who will equally suffer from the same difficult environment working.
So let us look at a. Africa that must be free from exploitation from the outside and multinationals who are stealing from Africa in broad daylight.
Using Democratic Republic of Congo (DRC) as a case study, if you ever fly very low, over the DRC you will see Tarmacs in the jungle, you will see it flying in to DRC picking up minerals and flying right out.
About the DRC:
The Democratic Republic of Congo (DRC), also known as Congo-Kinshasa, is a country located in Central Africa. It is the second-largest country in Africa, with a land area of 2.3 million square kilometers, and the eleventh-largest in the world. The country has a population of approximately 89 million people, making it the fourth-most populous country in Africa.
The DRC has a complex and troubled history, with a long-standing legacy of colonialism, civil wars, and political instability. The country was colonized by Belgium in the late 19th century and gained independence in 1960. After independence, the country experienced political instability, with a series of coups and political assassinations.
The DRC is rich in natural resources, including copper, cobalt, gold, diamonds, and coltan. However, despite its abundance of resources, the country remains one of the poorest in the world, with a GDP per capita of around $500. The country's economy is heavily reliant on the mining sector, which accounts for around 80% of its export revenue. However, the mining sector has also been linked to human rights abuses, corruption, and environmental degradation.
The DRC faces a range of challenges, including political instability, armed conflict, corruption, poverty, and weak governance. The country has been plagued by armed conflict for decades, particularly in the eastern part of the country, where armed groups continue to operate and engage in human rights abuses, such as forced labor, sexual violence, and recruitment of child soldiers. Corruption is also a significant challenge, with the country ranking 170th out of 180 countries in the 2020 Corruption Perceptions Index.
The same multinationals are responsible for young people who are giving MK sixteen because there are satellites in the skies telling them where those villages with lots of diamonds are. So, they arm young people and drag them to go jump off a few heads, the rest of the villagers runs away so they stay behind and do illegal mining.
We black people must understand what is going on. All that we see is black Africans killing each other. There are serious games that are being played on Africa for far too long and once we understand that, we can begin to strategize to bring the Change and difference, hence the need for unity among the African Diaspora.
One potential solution is to tap into the potential of the united diaspora by creating platforms and networks that facilitate investment and skills transfer. For example, the African Diaspora Network is a nonprofit organization that connects African diaspora leaders with one another and with African entrepreneurs and innovators. Another example is the African Business Angel Network, which brings together angel investors and startup entrepreneurs in Africa.
Addressing Brain Drain
Brain drains refers to the migration of skilled and talented individuals from their home countries to other parts of the world. This phenomenon is particularly prevalent in Africa, with many Africans leaving their home countries for better opportunities abroad. According to a report by the World Economic Forum, the brain drains costs Africa around $4 billion annually in lost human capital.
The most expensive line item in the cost of corruption is not what it has done to the economy but what it has done to sentiments and talent.
In other words, when a system is corrupted, those less deserving gets opportunities to which they do not deserve. Now those deserving pick their passports and leave the country which is not the best because when an individual gets say eighteen years of training in a specific field in a particular county and does not get the necessary system and infrastructure in place to practice all the is taught, then that becomes a wasted investment by allowing such an individual to leave the country.
When a system is distorted, talent's goes where it is rewarded and does not put up with a crooked system.
Using Nigeria as a case study, when you look at the top 100 investments bankers in wall street today, you will find a healthy percentage of them as Nigerians. The top brain surgeons, investment banking lawyers today, healthy percentage of them are Nigerians but Nigeria is struggling. This is to say that though some of the smartest people in the world are Nigerians but they are not found it their own country.
Therefore, Africa should stop destroying its own economy by allowing their talents to leave. Brain drain is causing other countries to harvest the skills, competency and abilities of talents.
One potential solution is for African countries to create more attractive conditions for skilled and talented individuals to stay and work in their home countries. This includes providing better education and training opportunities, improving working conditions, and creating an environment that is conducive to innovation and entrepreneurship. For example, Rwanda has implemented policies that promote innovation and entrepreneurship, leading to a thriving tech sector and a growing number of young entrepreneurs.
Africa must think because critical thinking is essential for leadership. The continent needs leaders who can navigate complex challenges, build consensus, and inspire change. Critical thinking enables individuals to analyze problems, weigh different perspectives, and develop a vision for the future. By cultivating critical thinking skills, Africa can develop a new generation of leaders who are equipped to tackle the continent's challenges and lead it into a prosperous future.
Finally, Africa must think because critical thinking is essential for empowerment. The continent has a long history of colonialism, exploitation, and marginalization, which has led to a lack of self-determination and agency. Critical thinking enables individuals to question power structures, challenge injustice, and advocate for their rights. By encouraging critical thinking, Africa can empower its citizens to take control of their own futures, and shape their own destinies.
In conclusion, Africa must think if it is to overcome its challenges, unlock its potential, and build a prosperous future. Critical thinking is essential for problem-solving, innovation, leadership, and empowerment, and must be cultivated at all levels of society. By encouraging critical thinking, Africa can create a culture of learning, exploration, and progress, leading to a brighter future for the continent and its people.