AGENDA 2030: IS AFRICA LAGGING ?
From 10 to 19 July 2023, at UN Headquarters, in New York, Government representatives, businesses, civil society organizations, young people and other international actors will gather for the High-Level Political Forum (HLPF) on Sustainable Development. They all come together with one purpose: Review and assess progress to achieve the global goals.
This year’s Forum will be critical. Many goals are currently off track or even reversing in progress. But there is no need for despair. The time is now to turbocharge their implementation and the HLPF will provide a unique opportunity to make this happen in the lead up to the SDG Summit in September.
At the opening day of the Forum, The Sustainable Development Goals Report 2023: Special Edition. The report will present the latest data on how the world is fairing on the goals. It will also feature policy recommendations, revealed earlier in the UN Secretary-General’s report “Progress towards the Sustainable Development Goals: Towards a Rescue Plan for People and Planet.”
5 main solutions to get the world back on track
1. Governments must strongly commit to seven years of sustained action to deliver on the promise of the SDGs.
2. Governments must create policies to leave to no one behind, end the war on nature, and protect the most vulnerable.
3. Governments must strengthen their own public institutions, building capacity and ensuring transparency and accountability.
4. The international community must invest in low- and middle-income countries to help them accelerate progress towards the goals. The SDG Stimulus is a perfect tool for this.
5. The world needs to strengthen the UN development system to boost the capacity to tackle emerging challenges and create an enabling environment for the SDGs.
“SDGs represent tremendous investment opportunities, and the UN estimates that achieving the SDGs could open $12 trillion in market opportunities and 380 million jobs by 2030.
5 things to know about the SDG Stimulus to deliver the 2030 Agenda
Without sufficient financing, the Sustainable Development Goals (SDGs) will remain distant. Raising these resources has become even more urgent following successive global crises. Amid difficult economic and financial conditions, and without mitigating actions, further backsliding of the SDGs is highly likely. Commitment to the SDG Stimulus can jumpstart investment at scale to achieve the 2030 Agenda. Here are 5 things you need to know:
1. The SDGs are backsliding
The global economy is facing multiple shocks that are reversing progress on the SDGs. A “great finance divide” has sharply curtailed the ability of many developing countries to respond to shocks and to invest in sustainable development and climate action.
2. SDG Stimulus calls for $500 billion in additional SDG investments annually
The UN’s SDG Stimulus Plan aims to offset the challenging market conditions that many developing countries face. It calls for scaling up financing and investment in the SDGs by at least $500 billion per year. It includes three areas for immediate action: tackle the high cost of debt and rising risks of debt distress; massively scale up affordable long-term financing; and expanding contingency financing to countries in need.
3. Tackling debt and the risk of debt distress
To tackle the high cost of debt and rising risks of debt distress, the SDG Stimulus calls on the G20 to develop an improved multilateral debt relief initiative that supports debt payment suspensions, debt exchanges, and/or debt reductions, with a clear mechanism to include private creditors. It asks donors to scale up debt for climate and SDG swaps, and for all creditors to include majority voting provisions in contracts and make greater use of risk-sharing debt instruments. The international community must also work towards structural solutions.
4. Scaling up affordable long-term financing
The SDG Stimulus calls for a massive boost in investment in developing countries. Public development banks, including multilateral development banks (MDBs), are uniquely positioned to accelerate this investment. MDBs can raise lending to $500 billion per year through a variety of measures. MDBs and their shareholders should sizably increase MDB capital bases; more efficiently use their balance sheets; and re-channel SDRs through MDBs. MDBs should also improve lending terms, including through longer terms, lower interest rates, use of state-contingent clauses, and increased lending in local currencies.
5. Expanding contingency financing
To address countries’ liquidity needs, the SDG Stimulus calls on the international community to significantly expand contingency financing. Countries with unused Special Drawing Rights (SDRs) should re-channel unused SDRs, including through MDBs or a new trust to finance climate mitigation projects in developing countries. As shocks become more frequent and interconnected, IFI shareholders should explore new quick-disbursing financing instruments, increase access limits to emergency lending windows, and more automatic issuance of SDRs.
Africa is off-track to achieving Agenda 2030
Despite the fact that African governments have made significant efforts to incorporate the SDGs and Agenda 2063 goals into national strategies and development plans, most African member States (especially those in South-Saharan Africa) are not on track to meet the intended goals and targets. Furthermore, the COVID-19 pandemic, climate change and the Ukraine-Russia conflict exacerbated the situation, resulting in severe socio-economic impacts on the lives of millions of people.
5 Five key findings
1. Approximately 500 million Africans are still living in extreme poverty, rising from 284 million in 1990. For example, in the East African region, poverty remains a key development challenge, with the Covid-19 pandemic pushing 9 million people into extreme poverty in 2021 and projected to increase this to around 9.3 million by 2030. The path of the Covid-19 pandemic projects that the number of poor people will increase from 141.8 million in 2020 to 143.1 million in 2021 and 127.7 million by 2030.
2. The economic growth (measured by per-capita income growth) has lagged behind real income growth in every sub-region of the continent, which implies that even periods of modest growth have not necessarily translated into higher standards of living for most Africans, but instead, resulted in the paradox of greater income inequality.
3. Based on current trends, Africa is unlikely to achieve any of its goals for peace, security and governance found in either of the two Agendas. While there are State exceptions, the slow progress in improved governance is generally the overriding drag on the Peace Pillar. There has also been a decline in democratic values, challenges in holding free and fair elections, and unconstitutional changes of government. Africa underperforms on the rule of law, with even essential governing functions—such as civil registration systems— falling short.
4. Although many African member States have put in place the legal and policy frameworks required to address environmental concerns, progress has been slow on many fronts.
5. The majority of African member States are not on track to take “full responsibility for financing their development Goals” as defined by either the 2030 Agenda or Agenda 2063. The Africa’s debt management situation is unsustainable. African countries have not been able to mobilize domestic resources necessary for investment and economic transformation. Currently, Africa’s domestic revenue generation continues to lag behind other regions. In Africa (excluding North Africa), revenue as a proportion of GDP declined from 16.5 percent in 2019 to 15 percent in 2020 before rebounding to 16.4 percent in 2021. Africa’s proportion of the domestic budget financed by domestic taxes remained high at 65.8 percent in 2019 compared to 61.9 percent in 2015. In 2020, Africa lost about US$ 89 billion to illicit financial flows (IFFs).
Accelerating the achievement of Global Agenda 2030 and Africa’s Agenda 2063
Accelerating the pace of inclusive and sustainable development for both the Global Agenda 2030 and Africa’s Agenda 2063 (The Africa we Want) will require: mobilizing domestic resources for investment, better debt management, increasing Official Development Assistance (ODA) and Foreign Direct Investment (FDI), addressing the climate change emergency, and tackling impacts of COVID-19 and the Ukraine-Russia crisis on Africa’s economies, as well as reducing conflicts and political crises.
1. Domestic resource mobilization for investment.
African governments should aim to strengthen domestic resource mobilization through accelerating digitalization, improving tax policy and administration, curbing illicit financial flows, and creating the enabling governance, legal and judicial frameworks for enhanced accountability, transparency, and participation.
2. Debt management.
Debt management has been challenging for African governments, with debt servicing taking away already scarce capital resources from sustainable development and much-needed critical infrastructural projects. In Africa (excluding North Africa), debt service increased from 27.9 percent of exports of goods and services in 2019 to 32.8 percent of exports of goods and services in 2020 and 29.5 percent of exports of goods and services in 2021.
3. ODA and FDI Flows.
OECD countries have collectively fallen short of their target to dedicate 0.7 percent of their gross national income (GNI) to Official Development Assistance (ODA). In addition, Foreign Direct Investments (FDIs) inflows to Africa continue to lag other regions such as Asia and Latin America and the Caribbean. In 2021, Africa received US$ 83 billion of FDI, far less than the US$ 690 billion received in Asia and US$ 134.4 billion received in Latin America and the Caribbean.
4. Addressing climate change emergency.
Land degradation is widespread and affects 46 percent of Africa’s land and 65 percent of the population, costing the region US$ 9.3 billion annually. The main drivers include variation in climatic conditions, demographic growth, land tenure insecurity and the expansion of settlements due to deforestation, unsustainable land and soil management, and poor farming practices. Strengthening evidence on climate change and the SDGs synergies and trade-offs can help raise ambitions and accelerate progress on these deeply interconnected agendas.
5. Tackling impacts of the COVID-19.
The pandemic pushed 23.6 million people in Africa into extreme poverty in 2021 compared to a hypothetical world without Covid. By 2030, at least 492 million people will be left in extreme poverty and at least 350 million people by 2050. With countries accelerating the SDGs through deliberate policies (SDG Push), the number of people in extreme poverty would decline from 489 million in 2021 to 442.4 million in 2030, and 159.7 million by 2050.
6. Mitigating the impacts of the Ukraine-Russia Crisis.
A steady increase in the prices of food, fuel and energy have been recorded in international markets, mainly due to the effects of the Ukraine and Russia crisis. The negative supply shock is threatening food security and economic stability and triggering social unrest in some African countries. African countries dependent on imports from Ukraine and Russia show significant delays in achieving a number of SDG targets, including, decent work and economic growth, industry, innovation and technology.
7. Reducing conflicts and political crises.
Peace is a key component of sustainable development. A healthy business environment is important for development, and in conflict-ridden communities, business operations are disrupted due to the unreliable social services and the prevalence of social problems such as poverty, hunger and inequality. Promoting peace and sustainable development reduces poverty and prevent conflict, translating to a healthier business environment. To address the challenges of conflicts and political crises
CONCLUSION
At the High-Level Political Forum (HLPF) that will take place in July 2023, preparing the General Assembly of September 2023, Heads of State and Governments and high representatives will renew their resolve to fulfil the promise of the 2030 Agenda and the principles enshrined in it. They will commit to end poverty and hunger everywhere; to combat inequalities within and among countries; to build peaceful, just and inclusive societies; to respect, protect and fulfil human rights and achieve gender equality and the empowerment of all women and girls; and to ensure the lasting protection of the planet and its natural resources.
The premises of the Agenda 2030 are in the peril, in particular, for Africa, where millions of people have fallen into poverty, and hunger and malnutrition are becoming more prevalent, and the impacts of climate change more pronounced. This situation has led to increased inequality underpinned by weakened international solidarity.
A new partnership for Africa’s development will be necessary to accelerate the implementation of the Agenda 2030, including mobilizing additional resources for investment and economic transformation.
