US Economist Highlights High Interest Rates as Barrier to Africa’s DevelopmentKenya’s Cabinet Secretary Calls for Accelerated Digital Transformation in Public and Private Sectors
NEW YORK — In a recent interview, Professor Jeffrey Sachs, a prominent American economist, highlighted the critical challenge facing African economies due to the disproportionately high interest rates they pay compared to other regions. This financial burden, he argues, significantly hampers the continent’s development efforts.
According to Ethiopian News Agency, during his exclusive discussion with ENA, the persistent high-interest rates, anticipated to continue through 2024 and beyond, pose a unique obstacle for African countries. These nations have seen their public debt levels surge in recent years, exacerbated by increased government spending to combat the impacts of global crises such as the Covid-19 pandemic and inflationary pressures. Sachs pointed out that Africa’s need for capital, infrastructure, education, and natural capital is crucial for its development and potential to achieve significant economic returns. However, the current global financing system fails to support these needs adequately.
“It (Africa) should be the fastest-growing region in the world, but the high-interest rates are seriously impeding the continent’s development,” Sachs stated, underscoring the urgency for reform in the international financial architecture. Such reform would enable African countries to access low-cost and long-term financing necessary for building the infrastructure and modernization required for progress.
In response to these challenges, the African Union has expressed its commitment to expedite the creation of its own financial institutions. This initiative aims to overcome the shortcomings of the current global financial structure, which is not conducive to Africa’s transformation and development aspirations. The establishment of these institutions is expected to enhance Africa’s access to capital, implement impartial debt management mechanisms, and ensure fair credit and risk assessments.
Sachs, in his role with the United Nations, mentioned his active involvement in advocating for these financial reforms at the international level. He highlighted his efforts to promote the inclusion of the African Union as the 21st member of the G-20, now referred to as the G-21, as a strategic move to ensure Africa’s voice is heard in critical financial reform discussions.
The economist also criticized wealthy nations for their failure to fulfill financial promises made to Africa, stressing the importance of Africa’s participation in negotiations to hold these countries accountable. “There were so many promises on climate finance and restructuring debt in a sensible way, yet very little has been accomplished,” he remarked, emphasizing the need for immediate action beyond mere discussions.
MOMBASA — The Cabinet Secretary of the Ministry of Information, Communication, and the Digital Economy (MICDE), Eliud Owalo, has made a strong appeal to both public and private sectors in Kenya to accelerate the adoption of digital technologies. Speaking at the inaugural Digital Transformation Public Sector (DTPS) Forum and Awards held at Sarova Whitesands Resort in Mombasa, Owalo highlighted the critical role of digitization in driving innovation, creating job opportunities, and promoting economic growth across the country.
According to Kenya News Agency, the government has made significant strides in establishing digital infrastructure, including the creation of 1250 digital hubs in villages, training of 119,000 individuals, and facilitating access to digital jobs for 135,471 youth. These efforts, as outlined during the two-day event co-hosted by Greydale Africa and in partnership with Amazon Web Services, Intel Africa, and Computer Revolution Africa, demonstrate the government’s commitment to integrating digital solutions across sectors to enhance service delivery and meet the needs of Kenyan citizens.
The Cabinet Secretary stressed the importance of digitizing the Kenyan economy and leveraging technology to improve governance. He called for a collaborative approach to identify gaps in institutional capacity and formulate strategies to strengthen digital capabilities within public institutions. “As we identify the different gaps in institutional capacity and explore various strategies to strengthen the digital capabilities of public institutions, let us use this forum as an opportunity for leaders to learn from each other’s experiences and share best practice methods in driving digitalization,” Owalo stated.
Owalo emphasized that the ongoing digital transformation initiatives, such as service digitalization, record digitization, and the development of digital skills, aim to eliminate the need for physical interactions between the public and government for accessing services. He encouraged participants at the forum to prioritize digitizing all aspects of their operations, underlining the pivotal role of digitalization in achieving success and driving the Bottom-up Economic Transformation Agenda.
ICDE Principal Secretary John Tanui also spoke at the event, enriching the conversation on leveraging technology and digital infrastructure for public sector transformation. “We have had presentations, shared successful case studies, and discussed the process of implementing digital transformation across different levels of leadership in our Ministries’ Departments and Agencies,” Tanui remarked, highlighting the ministry’s vision and the vast opportunities within the digital landscape.
The forum concluded with an awards ceremony, recognizing the County Government of Nyandarua as the ‘Overall Winner, Digital Transformation Public Sector Awards 2024’ and the Nairobi County Government as the ‘Leader, Digital Innovation County Governments 2024.’ These awards underscore the significance of digital innovation in enhancing service delivery and the effectiveness of governance in Kenya.