The African Community of Practice on Managing for Development Results (AfCoP-MfDR), together with the support of the African Capacity Building Foundation (ACBF) and the African Development Bank (AfDB) hosted the Third Africa for Results Forum (AfriK4R) from 13 to 15 July in Nairobi, Kenya.
This meeting was the third in a series, aimed at improving the lives of citizens across Africa using MfDR principles to bring about sustainable change. The 3rd AfriK4R Forum focused specifically on domestic resource mobilization, where participants shared and discussed innovative practices, solutions and mechanisms in mobilizing domestic financial resources in Africa.
Over the past two decades, Africa has seen a remarkable economic growth. According to the World Bank, GDP growth has averaged 4.5 percent a year during 1995-2013. Despite the slowdown of Africa’s biggest economies like Nigeria, the GDP in the region is expected to pick up to an average of 4.4 percent and 4.8 percent in 2016 and 2017 respectively. The continent is among the world’s most rapidly growing economic regions.
Ministry of Devolution and Planning’s Hon. Mwangi Kiunjuri, opened the conference by saying
A number of studies carried out indicate that the continent has unexploited potential for financing development. “These studies reveal a broad range of resources available in Africa including mechanisms and instruments through which such resources can be channeled.”
He continued that some of the resources already available to the continent include:
- More than US$ 520 billion annually from domestic taxes that Africa generates;
- More that US$ 168 billion that Africa earns from minerals and mineral fuels;
- US$ 400 billion that Africa holds in International Reserves in their respective
- Central/Reserve Banks;
- Rise in Stock market Capitalization from US$200 billion in 1996 to USD 1.2 trillion in 2007;
- Some ten African Countries have established Sovereign Wealth Funds (SWF) with an estimated values of around US$160 billion
“Resources such as those cited above can easily cover the cost of close to 70 per cent of our development financing needs.”
Although the growth hides the increasing inequality on the continent – where the majority of people do not feel the impact of economic growth in their lives – it is essential to sustain that growth as it is the first condition for a shared prosperity. However, sustaining that growth requires adequate financial resources to allow African governments to increasingly invest in economically and socially productive activities that will improve the living conditions of the people, and African governments have not reached successfully. As outlined by Dr. Thomas Munthali from the African Capacity Building Foundation, “African countries face various challenges, capacity being the most important, preventing them from effectively mobilizing domestic resources. These challenges are related to revenue collection, curbing illicit financial flows, strengthening financial sector and fighting corruption”
“With regards to these challenges, the African Development Bank is continuously supporting all African countries to ensure they are able to increase their domestic resources and invest them into economically and socially productive activities that will improve the living conditions of the populations” said Gabriel Negatu, Kenyan representative for the AfDB.
The forum brought together private and public sector - specifically high level officials from revenue mobilization institutions including tax administration, supervision and oversight institutions as well as financial intermediaries from both Anglophone and Francophone African countries and regional institutions.
The 3rd Africa for Results (AfriK4R) Forum sought to further a results culture in Africa and contribute to the continent’s transformation agenda. This will be only be realized through knowledge sharing and dialogue on mainstreaming results-based management in support of key institutional reforms in a bid to enhance domestic resource mobilization required for achieving the desired national development results. The Forum builds on the 2nd AfriK4R Forum held in Abidjan, Côte d’Ivoire in June 2015 on regional integration, and the African Community of Practice annual meeting to enhance development effectiveness on the continent.
“In here, I know we have great minds. I believe you are all well prepared to engage with all the issues that will come from the discussion forums that will be held. Give it your all to ensure that we as a continent can proudly take our place at the table and be at the driving seat of our development agenda.” said Hon. Mwanji Kiunjuri.
