The Chief Economist of the United Nations Economic Commission for Africa (UNECA), Hanan Morsy said that Africa now accounts for more than half of the world’s poverty.
On Monday, Morsy addressed the 55th session of the African Ministers of Finance, Planning, and Economic Development Conference in Addis Ababa, Ethiopia.
“The continent faced a tsunami of global shocks that have exacerbated existing socio-economic operation and equity,” Morsy said.
“Africa, as a result of these shocks, currently accounts for more than half of the world’s poor at 54.8 percent.
“And we have estimated 548 million Africans living in poverty in 2022 and 149 million at risk of falling into poverty in the same year.
“There is a skewed distribution across the continent in terms of concentration of these issues, with particularly East and West Africa having a higher share of poverty across regions.”
Morsy stated that existing inequalities exacerbated the situation, adding that the rate of inequality increased even during periods of rapid economic growth in Africa.
She explained that several domestic and international recommendations had been implemented to aid in the fight against poverty.
“We need to pursue inclusive macroeconomic policies such as targeted and efficient spending and build resilience to future shocks at the household and community level,” Morsy said.
“African governments need to enhance resource mobilisation. To do that. I think several measures would help, including closing tax loopholes.
“Africa loses 40 to 60 billion dollars annually in tax evasion. There’s also funding that can be raised through tackling issues of illicit financial flows.”
According to the economist, Africa’s regulatory framework and global financial architecture need to be improved.
“Another critical issue is scaling up affordable and long-term financing for development. And that would involve improving the terms of lending,” she said.
“Increasing the flexibility and the alleged poor eligibility and selection qualification criteria of the IMF resilience and sustainability facility is essential.
“Enhancing the regulatory framework for credit rating agencies to have better transparency in terms of methodology, rating processes and an oversight and external recourse mechanisms in case of dispute is key.”
Morsy stated that in order for African countries to maintain market access, more lending options, official support, and guarantees are required to allow them to access capital markets at affordable rates.
