Dr. Ibrahim Assane Mayaki - Afrikan Heroes

African Governments Urged to Balance Between Saving Lives and Saving Eeconomies

May 9, 2020

African Union Development Agency CEO, Dr Ibrahim Assane Mayaki

With few African countries partially lifting the lockdowns imposed at the wake of the Covid-19 pandemic, leaders are being urged to weigh the consequences and guard against zero-sum policies aimed at saving only lives or the economy, some of the continent’s leading economic think tanks have warned. With 42 African countries currently under full or partial lockdown, the continent is losing about 2.5% of its GDP or US$65 billion a month, said the UN Economic Commission for Africa’s Secretary, Vera Songwe. Songwe was speaking during a debate on Africa’s lockdown exit strategies.

Populations in countries like South Africa and Kenya are growing impatient, with some families living below the poverty line saying they would rather take their chances with the coronavirus than face starvation, said African Union Development Agency CEO, Dr Ibrahim Assane Mayaki.”The question is how to choose the lesser of the two evils, because strict lockdowns have consequences,” he said. Both the economy and social fabric are breaking. Mayaki said data from the World Economic Forum and China shows that strict lockdowns for a long period of time could lead to “mess” of severe consequences for the mental health of citizens, the economy and the social fabric.

In countries with high inequality levels, such as South Africa, when people have run out of cash and food they cannot be locked down, said Mayaki. “The more you stay under lockdown, the more you deepen inequality…We need smart lockdowns which allow intelligent exit strategies where the most vulnerable and communities are preserved in terms of quality of life,” he added. While South Africa’s government has announced a R500 billion economic support package, part of which is earmarked for helping unemployed people and those who survive on social grants, Mayaki said governance systems will be critical in determining whether the relief goes where it is intended to.

Kennedy Odede, a Kenyan social entrepreneur and founder of Shining Hope for Communities, said the fact that South Africa “almost exploded” over food parcels showed that strict lockdowns have become a time bomb. The biggest problem is that most of the financial relief governments are announcing benefits the formal economy, whereas the continent is dominated by the informal sector, he said. “When there is inequality and people are living from hand to mouth, they are ready for demonstration, for uprising because they are not losing anything,” said Odede.

The calls for governments to interrogate their lockdown exit strategies come as South Africa faces pressure from its own citizens and businesses to rethink its risk-adjusted approach to lifting the lockdown which is now in its sixth week. Company CEOs, doctors and actuaries in the country are among those who have written to President Ramaphosa calling for a relaxation of the lockdown regulations to let economic more activities resume. Business for South Africa, meanwhile, warned on Wednesday that the country’s GDP could shrink by between 10% and 16.7% this year, putting between 1 million and 4 million jobs are at risk.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

AU, Ecobank Launch Framework to support Micro-Small-Medium Enterprises (MSMEs)

April 23, 2020

AUDA-NEPAD Chief Executive Officer Dr. Ibrahim Assane Mayaki

To effectively identify and seek ways of supporting micro-small-medium enterprises (MSMEs) which form a large part of individual economies in Africa but have little or no absorption capacity to the effect of the pandemic, the African Union Development Agency (AUDA) and Ecobank Group agreed to collaborate to support small businesses in Africa. AUDA-NEPAD Chief Executive Officer Dr. Ibrahim Assane Mayaki and Ecobank Group Chief Executive Officer Mr Ade Ayeyemi agreed to drive this continental initiative to support African Micro and Small-Medium Enterprises (MSMEs) as they face the economic and social challenges posed by the COVID-19 pandemic. The major objectives of this initiative are to create a one-stop platform which will address the issues, challenges and needs of MSMEs during and post COVID-19, and be an all-encompassing, flexible and comprehensive one-size-fits-all tool for MSMEs in the formal and informal sectors across the continent.

The initiative also aims to identify opportunities and innovative ways to support and protect MSMEs and job opportunities, especially in food and agribusinesses, technology startups, health specialized entities and those operating along with supply chain operations, noting that MSMEs account for an estimated 90% of businesses in most African economies; and coordinate and harmonize initiatives and ongoing efforts that support MSMEs to gain access to information, finance, and fiscal stimulus during the outbreak. The platform also aims to ensure that MSMEs have continuous access to national, regional and continental markets while recommending to policymakers, solutions regarding domestic debts as they are projected to face challenges due to the economic difficulties that the Member States will face.

Speaking on the initiative, Dr. Mayaki highlighted that “the COVID-19 pandemic while affecting global economies, will have a devastating effect on African economies and businesses” adding that “AUDA-NEPAD and Ecobank Group intend to jointly build a continental platform based on our initial ‘100,000 SMEs by 2020’ campaign which will provide an immediate response to the potential impact of COVID-19 on SMEs and job creation on the continent”, said Dr Mayaki. He added that AUDA-NEPAD will leverage on its existing instruments, networks, and programmes to gather stakeholders around a digital platform that showcases and monitors the progress made.

Mr. Ade Ayeyemi remarked that the fragility of some of the African economies is more pronounced with the impact of COVID-19 and therefore continental coordination is essential to support national measures by governments to curb the spread of the virus on the continent. He further underscored that MSMEs which form a large part of individual economies in Africa have little or no absorption capacity to the effect of the pandemic. “As a longtime partner of AUDA-NEPAD, we welcome the opportunity to work with the Agency to co-lead this continental platform that will empower MSMEs with knowledge, resources, mentoring, technical expertise and financial support to ensure the sustainability of their businesses during and post COVID-19. The objective of the continental platform is indeed aligned with the Ecobank vision of contributing to the economic and social development of Africa, our home” said Ade Ayeyemi.

Kelechi Deca