Economic Survival vs. Impact

African countries are grappling with a myriad of economic challenges, including climate change, poor soil health, food insecurity, and rising energy prices. The adverse effects of climate change are increasingly visible across all sectors of the economy, complicating efforts to maintain price stability and foster economic growth. This has led to significant inflation, particularly in countries like Nigeria, where reliance on oil and gas revenue is high.

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In Nigeria, the inflation rate has surged to nearly 40% following the abrupt removal of fuel subsidies on May 29th, 2023. This policy change caused a sharp increase in the cost of essential commodities and prompted the exit of several multinational companies from the country. Similarly, in Kenya, recent protests against the finance bills have raised concerns about inflationary pressures similar to those seen in Nigeria. The cost of transportation and manufacturing in Kenya increased by 200%, leading to a rapid rise in prices for goods and services and causing currency instability.

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The lack of clear economic direction across the continent has weakened institutions and diminished the potential for social impact that could drive positive change. Local businesses, already struggling to survive, are further hampered by the predominantly poor population, which lacks the financial resources to spur economic growth. This situation underscores the urgent need for governments to prioritize impactful economic policies that support sustainable development and improve the well-being of their citizens.

The predominantly rural and urban poor populations in Africa are especially vulnerable to the impacts of reduced agricultural production, worsening food security, increased incidents of flooding and drought, the spread of diseases, and heightened conflicts over scarce land and water resources. These factors are exacerbating security challenges in the sub-region. There is growing concern that continued increases in food prices and other essentials could lead to heightened volatility in a continent already struggling with climate change-induced insecurity.

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To mitigate this volatility and address these pressing issues, it is essential to prioritize impact over extreme and soulless capitalism. This approach, which has driven many into vulnerable states, must be reevaluated. Governments must sincerely and honestly focus on the welfare of their citizens, ensuring that economic decisions and policies are made with the public good in mind.

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As debt profiles continue to rise, citizens across various countries express distrust in their governments, believing that policy decisions do not align with their best interests. Therefore, it is crucial for governments across the continent to balance economic decisions with impactful policies that promote social and economic well-being, minimize climate risks, and improve the environmental health of communities. By prioritizing impact, governments can prevent further impoverishment and vulnerability while fostering a more stable and prosperous future for their people.