Invest in Africa

IMF Blog, March 17, 2017

Source details

Publication: Invest in Africa
Section: Investment
Author: The Editors
Date: March 17, 2017
Occasion: As the Group of Twenty finance ministers and central bank governors meet in Germany, policymakers are looking to increase investment in Africa.
Interview/podcast contribution: Jamie Drummond, co-founder of ONE Campaign.

The German finance ministry believes heavy investment now in the education, employment and empowerment of this generation of Africans is required to avoid future regret by the international community, especially European neighbors to Africa.
Historical pattern: There have been several moments when the world has come together in response to both the opportunity and jeopardy facing the continent; it is unclear which outcome will prevail.
Demographic dynamics:
- Potential: A “demographic dividend” could enable rapid economic growth.
- Preconditions for the dividend: adequate nutrition, healthcare, access to education, and access to employment and opportunity.
- Risk: Absent these preconditions, the result could be “demographic destabilization and mass displacement,” leading to profound frustration and anger among youth.

Extremism and governance failures: Drummond reports witnessing consequences of neglect and bad governance in north-east Nigeria, where extremist ideologies have taken root.
Human example cited: Amina, a twenty-year-old mother of six who lost her husband to Boko Haram.
Scale emphasized: “There are tens of millions of Aminas across that part of the continent” deserving “respect and dignified investments” that change their fate and have broader global implications.

Prioritize heavy investment in:
- Education
- Employment
- Empowerment of youth
Framing: Investments should be dignified and aimed at changing individual fates as well as broader regional and global outcomes.

Source: Invest in Africa — The Editors, March 17, 2017.