In his first interview as Under-Secretary-General and Executive Secretary of the UN Economic Commission for Africa (ECA), Mr. Claver Gatete spoke with Africa Renewal's Kingsley Ighobor about the critical need to reform the global financial architecture to more effectively benefit developing nations. He also discusses his vision for the organization and the importance of empowering women and youth to play vital roles in advancing Africa's development.
Here are excerpts from the interview:
You have recently assumed the role of Executive Secretary at the ECA. What is your vision for the organization?
I don't believe it is necessary to create a new vision for the ECA. The organization already has a mandate, established in 1958, to support economic and social development on the African continent.
Initially, it collaborated with the Organization of African Unity and now works with the African Union (AU) to assist member countries in their development efforts.
Our primary focus is on helping relevant ministries [of African countries], especially the Ministries of Finance and Economic Development, build the necessary capacity to manage their individual economies and promote Africa's integration.
Additionally, ECA provides assistance to the five Regional Economic Communities (RECs) as they pursue economic integration.
Now we have the African Continental Free Trade Agreement (AfCFTA), which aims to connect the entire continent, and we are partnering with the AfCFTA Secretariat headquartered in Accra, Ghana.
However, everything revolves around the Agenda 2063, the AU's vision adopted by heads of state in 2013 for African countries to achieve middle-income status. The ECA is assisting governments in integrating the 2030 Agenda for Sustainable Development into their development processes.
We recognize the importance of engaging and enlisting the active participation of the private sector, and partners like the African Development Bank, Afreximbank and others are playing a pivotal role in Africa's development.
Leveraging our relationships with other UN economic commissions worldwide, we can learn from each other and contribute to reforms of the global financial architecture.
You have extensive experience in various spheres, nationally, regionally, and internationally. Is it fair to say that your background has prepared you uniquely for this job?
It helps. For example, as the Governor of the National Bank of Rwanda, at least you understand monetary policy and financial stability, which are crucial elements for any country's development and domestic resource mobilization.
We have often focused on taxation and not actually creating a financial system that can allow the private sector to rally the resources for investments. Being a finance minister helps you understand the challenges and the options available to finance and manage an economy.
An economy requires financing, macroeconomic stability, and capacity-building. ECA will offer relevant advice and training to countries.
Our training centre, the African Institute for Economic Development and Planning, (IDEP), based in Senegal, has the capacity to support all countries.
But there is another element, which is how we support the private sector. How do countries de-risk or engage in public-private partnerships (PPP) and so on? So, my experience will be helpful because we know what works and what doesn't work.
In addition, ECA's five sub-regional offices across the continent will enhance our ability to make a meaningful impact.
Working under the AU Commission, we can focus on the comparative advantage of different regions. There are countries in Southern Africa, for example, that are rich in minerals, and we can create a value chain and special economic zones in those places to catalyze industrialization.
The ECA has a crucial role in promoting regional infrastructure projects, but it's often complex due to varying policies, priorities and capacities among countries. How do you plan to help Africa address this challenge?
The key lies in effective coordination. Already, there are common infrastructures in many regions. East African Community, for instance, has interlinking railway and energy projects, allowing for electricity sharing among member countries.
We have an 80-megawatt energy project in East Africa, shared among Tanzania, Rwanda and Burundi. The Ruzizi III power project is another example of regional collaboration, benefiting Burundi, DRC and Rwanda.
We have two corridors: the Northern Corridor and the Central Corridor, with many projects along each route. The Northern Corridor is from Kenya, Uganda, Rwanda and on to Burundi. The Central Corridor is from Tanzania and through Rwanda to DRC.
Countries are looking at railway lines in both corridors. These corridors facilitate transportation and are particularly valuable to landlocked countries like Rwanda and Burundi.
West Africa also has an energy power pool.
In the meantime, there are simple things that can be done such as eliminating tariff and non-tariff barriers to trade.
You were Rwanda's representative to AUDA-NEPAD? From your perspective, is there room for improving relations between the ECA and the AU?
Certainly. ECA's role is to support the implementation of Agenda 2063, a vision led by the AU's leadership. As the first 10 years of Agenda 2063 have passed, and we embark on another 10-year programme, ECA will play a supportive role in helping achieve the AU's goals.
While the AfCFTA has gained widespread conceptual acceptance, only about eight African countries are trading under its Guided Trade Initiative. Are you satisfied with current progress?
The focus now is on assisting countries in devising and implementing strategies for the AfCFTA. It's important to note that this is a relatively new initiative, and we have witnessed a promising start on the path toward integration.
As we move forward, the number of countries that will meet the threshold for trading will increase.
We believe that AfCFTA has the potential to be a game-changer in terms of fostering integration and facilitating trade across the continent.
African economies have faced unexpected external shocks, including COVID-19, conflicts in Ukraine and the Middle East, and the impact of climate change. How can the continent navigate these challenges?
You are correct. We used to have shocks, but this time it is different. We had the financial crisis from 2008 to 2009. And then COVID-19, which was never anticipated. Now we have the conflicts in Ukraine and the Middle East.
Because of COVID-19 alone, countries were forced to borrow money to save lives, while the war in Ukraine has caused global inflation. That's a very bad combination because it has increased the debt burden significantly. It means you are paying the debt in foreign currency, depleting your reserves and limiting a central bank's capacity to intervene in the market.
Countries are facing difficult choices, deciding whether to prioritize debt repayment or investment in Sustainable Development Goals (SDGs) like health, education, and other critical sectors
It's tough! That is why we are talking about reforms of the international financial architecture.
What is the key argument for reforms in the international financial architecture.?
We are calling for reforms so that countries can have access to long-term resources. Reforms of institutions like the Bretton Woods institutions and development banks are crucial. We need to ensure that countries in the Global South have access to long-term resources, as they lack AAA ratings to access affordable market borrowing.
They depend on long-term concessional resources, about 40 years and above, a 10-year grace period, and so forth.
But that money has not grown as fast as the expansion of the economy, meaning that to service their economies, countries were forced to go beyond the concessional resources to borrow from the market. To do that, you have expensive short-term and very little long-term resources.
Additionally, addressing the issue of debt overhang is essential.
With multiple lenders, including China, India, and private lenders issuing Eurobonds, there's a need to bring all stakeholders together to discuss and find sustainable solutions to debt overhangs.
Is that feasible?
It is feasible. And there are possibilities available. The UN Secretary-General Antonio Guterres has proposed a $500 billion annual SDG stimulus and provided a feasible pathway to obtain this financing, even as we find a permanent solution.
This funding can make a significant difference in achieving SDGs, where progress has been lagging.
Coming from Rwanda, a country known for bridging gender inequality gaps, what is your perspective on women's involvement in Africa's development?
Gender equality is a paramount concern for both the UN and many member countries.
Progress has been made in closing the gender gap, with the UN actively promoting gender inclusivity and achieving a gender balance at the senior management level. Similarly, ECA is making strides, with nearly 50 per cent representation of women at the senior level.
In Rwanda, efforts to promote gender equality began long ago, including the implementation of gender-responsive budgeting. Our constitution, like those of many countries, ensures women's participation in decision-making bodies. Rwanda boasts more than 60 per cent female parliamentarians and 50 per cent representation in the cabinet.
Moreover, women's involvement extends to various aspects of life, including economic and political governance. Legal barriers have been eliminated, ensuring equal pay for equal work, and women are no longer excluded from land ownership and inheritance.
At the same time, women must participate in the private sector. They must have access to finance and loans and be able to go into business.
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Beyond the UN, should African women expect you to be their advocate?
This is a must. There's no other way. I am committed to advocating for women's active participation across all spheres--social, economic and political. There is no reason women should not have equal opportunities, and I believe this is a critical component of Africa's development.
How can ECA support the digital economy, particularly for young Africans who view the sector as a significant opportunity?
At the UN, Rwanda and Sweden are leading and co-facilitating the Global Digital Compact, which is going to be a key element of the upcoming Summit of the Future.
Technology plays a crucial role in development, and we must ensure that everyone, especially the 2.6 billion globally who remain unconnected, have access to digital opportunities.
Organizations like Smart Africa and Transform Africa are assisting some African countries in digital technologies.
Rwanda started with broadband infrastructure. We had an expert from ECA who assisted with vision creation. Since then, technology has helped improve access to finance, interlink the government, enhance the efficiency of our legal system-- now there is an electronic case management system, which links all the courts. It has helped in digitizing land records--we know who owns what land.
Mobile money services like M-Pesa in Kenya have revolutionized financial transactions and accountability.
Furthermore, artificial intelligence holds great promise for sectors such as health, education, and agriculture, and Africa cannot lag behind.
To support the digital economy, we must prioritize connecting countries that are not yet digitally connected. Initiatives by the International Telecommunication Union and the ECA are working toward this goal.
What does success look like for you at the ECA?
Success is fulfilling ECA's fundamental purpose.
If we can assist countries in navigating these hard times, address issues of financing, debt, integration, and infrastructure, and stimulate private sector interest and investment in the African continent, we will have achieved success.
Moreover, success entails supporting the AU Commission in the effective implementation of Agenda 2063 and the realization of the SDGs. Strengthening resilience, especially in the face of current and future shocks, is a key marker of success for the ECA.
