We’re changing the way the world thinks about financing Africa’s SDGs.
We’re changing the way the world thinks about financing Africa’s SDGs.
Pillar One: Financing
Globally, financing for the SDGs remains below the requisite investment needs. The same is true for Africa. Despite an annual total financing mix of $650 billion ($500 billion in domestic revenue, $50 billion from official development assistance, slightly less than $50 billion in foreign direct investment, and $60 billion in remittances), the estimated additional annual financing required is between $500 billion and $1.2 trillion. Already, one in five African countries does not raise enough in revenues to meet its basic state functions. Even worse, in sub-Saharan Africa, that number is one in three.
Pillar Two: Data Gap
While we do have a snapshot of the progress Africa (and the world) is making towards achieving the SDGs, a holistic review of SDGs over the last three years was not possible given that not enough data exists. In fact, only 96 indicators have data (41.4 percent of the global indicator framework). Where data exists, it is not comprehensive and consistent. Too often, African countries do not possess updated data for crucial indicators in poverty, health, nutrition, education, and infrastructure. Household surveys are irregular: Their scope, comprehensiveness, quantity, and quality vary wildly. At the continental level, there is just not enough data for tracking SDGs 10, 11, and 12.
Pillar Three: Manufacturing
The emphasis on cultivating a competitive manufacturing industry in Africa could pave the way for substantial job opportunities and economic expansion. As of Q3/2023, Africa only represents 2% of the total global manufacturing output, with a mere 0.6% of manufactured goods' imports sourced from Africa. Africa’s biggest opportunities in the manufacturing sector, discussing trends and perspectives by 2030. It provides policymakers with some options likely to attract private investors, accelerate manufacturing and industrial development, and contribute to growth and poverty alleviation, facilitating the fulfillment of the SDGs and the African Union’s Agenda 2063. While policy solutions are likely to differ across countries, manufacturing will be central to Africa’s ability to meet its development goals.
Pillar Three: Analytics
Overall, we cannot postpone investment in human capital and people, or we risk losing a generation. SDG-tailored investment vehicles must be put in place on the continent that will consider the urgency, magnitude, and complexity of challenges faced in Africa, as well as the opportunities to be seized here. Africa’s failure to attain the SDGs will have implications everywhere on the planet, since some SDGs possess a transboundary nature, for example climate change, life below water, and effective partnerships.