Agenda 2063, a strategic framework outlining Africa’s progress over 50 years, was developed in 2013 and adopted by the heads of state and AU governments in 2015.
It intends to transform the continent into “The Africa we want” through a series of interventions to promote Pan-Africanism and, with it, peace and stability, inclusive economic growth and sustainability that will spur job creation, industrialisation and economic diversification.
Also, to stimulate science and technology, to make health care and education available to all, and to build the infrastructure modern societies need to thrive.
On the political front, Agenda 2063 promotes human rights, good governance and democracy. And in what is genuinely far-sighted, a borderless continent where people and trade goods can move seamlessly throughout a unified Africa.
Facing today’s global economic challenges, Agenda 2063 may seem like a utopian pipe dream. But the reality is that some African countries have made great strides in pursuing the Agenda’s aims. And they serve to provide valuable lessons for South Africa.
Take Rwanda, for example, a country that has gone from a devastating civil war to a thriving economic hub in less than 30 years — a remarkable feat.
Pursuing the aims of Agenda 2063 is the theme I aim to tackle over the coming weeks with a series of columns. I want to explore what needs to be done in South Africa to ensure economic growth and a more equitable society.
Being involved with asset management for a good deal of my professional life — I was the chief investment officer, then the CEO of the PIC for 15 years — my slant on these issues is based on investment opportunities that can make a significant difference to the lives of our people.
In other words, impact investments, made to generate meaningful social and environmental benefits and provide sound financial returns, are high on my list of priorities.
In South Africa, for instance, small and medium-sized enterprises are responsible for 34% of the national GDP and employ 60% of the national workforce.
As is investing in small enterprises and entrepreneurs, SMEs are the backbone of economies throughout the continent and the largest employers. In South Africa, for instance, small and medium-sized enterprises are responsible for 34% of the national GDP and employ 60% of the national workforce. Similar statistics apply to other large economies in Africa.
Yet, crucial as they are, few financial institutions expressly support them. One financial institution making great strides in assisting small enterprises is Togo-based Ecobank.
Other than providing sorely needed lines of credit, Ecobank has also tailored products and services to meet the needs of these small businesses. Plus, it provided training to help business owners grow their businesses into thriving, job-creating entities.
Of course, when discussing jobs, we cannot ignore the biggest victims of unemployment in SA, our youth.
My research for an article on this particular issue has highlighted what could be remarkably sanguine opportunities. Developed nations are getting older by the day. It’s a demographic shift caused by several decades of declining birth-rates and increasing life expectancy.
As the proportion of older adults increases, the labour force will inevitably shrink, leading to shortages of young, strong, healthy, dynamic people to drive economic growth, productivity and the sustainability of pensions.
With an Africa-wide median age about 20 years younger than developed nations, plus a booming birth-rate, there will be no option but to look to the youth of Africa to take the lead.
Other thought-provoking issues I will be exploring are closer to home. For instance, the abject poverty that compels some 20% of our fellow citizens to live in overcrowded, unhealthy and undignified conditions. Yet fixing the housing issue could be thepanacaea for our dire unemployment crisis.
It’s all based on a simple statistic. For every modest house constructed here in SA, four people will secure permanent employment thanks to the multiplier effect.
Imagine if we could repeat the government’s efforts during the first decade of democracy when it constructed 1.8-million RDP homes. This 1-4 ratio would result in creating 7.2 million jobs, which would resolve two enormous problems.
It’s a topic I’ll unpack in my next piece.
My intention in writing these articles is not to provide concrete answers to our most pressing dilemmas but to spur debate. And to inform you about what has been achieved in other African countries that could be successfully implemented here.
Agenda 2063 is a hugely inspiring, visionary, progressive framework. By the time we reach 2063, the continent’s population, estimated to surpass three-billion souls by then, has a far better chance to live in peace, dignity and a measure of prosperity.
Dr Dan Matjila received his PhD in mathematics from the University of Witwatersrand, followed by postgraduate diplomas from Oxford University and Harvard Business School. As the former CEO of the Public Investment Corporation (PIC), responsible for investing for the South African Government Employees Pension Fund (GEPF), Dr Matjila and his team grew the assets under management to over R2.2-trillion, making the PIC the largest asset manager in Africa.
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