Africa: Investing in Health to Foster Equitable and Sustainable Growth

8 November 2016
guest column

“If you want to go quickly, go alone," says one African proverb. "If you want to go far, go together.” This adage is particularly telling when we consider Africa’s development challenges, including providing better health for all our citizens.

Africa is today home to some of the world’s fastest-growing economies. At the same time, the continent has made important strides in areas such as poverty reduction, primary school enrollment , maternal and infant mortality and the fight against epidemics such as HIV, TB and malaria. Despite setbacks such as the recent Ebola virus outbreak, the return of growth to the continent is very much welcome, particularly after the lost decades.

Such picture has given credence to the ' Africa Rising ' narrative, and although the reality is far more complex, it is evidence of a changing perception of the continent, underpinned by strong growth, a burgeoning middle class, an improving regional business environment, increased aggregate demand and robust trade and investment ties with emerging economies. These are all positive developments, but we should not lose sight of the stubborn problems. Inclusive development remains an elusive goal for the continent. Too many Africans continue to live in chronic poverty, a large number of its young people face a future without jobs, and HIV, TB and malaria still devastate hundreds of millions of lives and particularly affect our young women and girls.

Despite the enormous challenges we face, it is deeply encouraging to see that African leaders are investing more in the health of their own populations, one of the strongest foundations of inclusive and sustainable growth. African countries have made tremendous progress in this respect: domestic financing is significantly increasing and already accounts for more than half of funding for HIV, more than three-quarters for tuberculosis and around a quarter for malaria.

These investments have important repercussions beyond the health sector, with a powerful multiplier effect. They are crucial to end extreme poverty and foster economic growth and can help bring a true economic transformation to our continent. Over the past decade, health improvements constituted 24 percent of full income growth in low and middle-income countries, including through the effect of improved health on labor productivity, education, investment, access to natural resources, and the ratio of workers to dependents.

In September, African countries stepped up their contributions to the Global Fund at its latest replenishment conference, which secured total pledges of more than US$12.9 billion from partners across the world for the next three years starting in 2017. Programs supported by the Global Fund have saved 20 million lives since 2002, and are on track to reach a total of 22 million lives saved by the end of 2016. At a time of uncertainty, the replenishment conference was a remarkable commitment to global health and a sign of optimism for the future, made possible by the support of many partners, including the European Commission, the African Union and the African, Caribbean and Pacific Group of States (ACP). Investments from Benin, Côte d'Ivoire, Kenya, Namibia, Nigeria, Senegal, South Africa, Togo, Zambia and Zimbabwe totaled approximately US$34 million, showing shared responsibility. The Global Fund’s co-financing requirements are playing a galvanizing role in spurring domestic investment in programs related to the three diseases.

Programs supported by the Global Fund are making progress towards the Sustainable Development Goals of ending the epidemics of HIV, TB and malaria, and toward other goals such as reducing maternal mortality, achieving gender equality, ending preventable deaths of newborns and children under 5, ensuring universal access to sexual and reproductive health care, and achieving universal health coverage. Using an integrated approach, these investments are laying the groundwork to address Africa’s development challenges.

A healthy people is the key for African countries to make optimal use of their rich human and natural resources, achieving their full economic potential and become equal partners in global trade – not only in primary commodities, but also in higher-value manufacturing and services. As the experience of other developing regions of the world has shown, a dynamic trade sector can serve as a powerful engine for job creation, inclusive growth, poverty reduction and sustainable development.

Africa has what it takes to continue investing in the health of its people. But as the African proverb reminds us: if we want to go farther, we should go together. The global community has made breathtaking progress in fighting HIV, tuberculosis and malaria over the last decade, saving millions of lives and reinvigorating economies. But we still have a lot of work to do. Working in partnership, we have an opportunity to promote equitable and sustainable growth, macroeconomic stability and reduce poverty.

Dr. Abdalla Hamdok is the Acting Executive Secretary and Chief economist of the United Nations Economic Commission to Africa , based in Addis Ababa.

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