Post-pandemic Recovery Plan: UNDP, Africa Investor, AfCFTA, launch initiative

The UNDP, Africa Investor (Ai) and the AfCFTA Secretariat have launched a “Regulation as a Stimulus” (RaaS) initiative at a high-level side event on the margins of the 76th United Nations General Assembly, as a post pandemic recovery plan.

 

The “Regulation as a Stimulus” is a unique model for African governments to create policy and structural enablers that will aid the revival and transformation of economies post-COVID-19.

 

The “Regulation as a Stimulus” (RaaS), developed by UNDP and Africa Investor, with support from the AfCFTA Secretariat and a research partnership with Cariolis Technologies, identifies regulatory levers that can be utilized by African Heads of State to quickly create change, offsetting some of the short-term adjustment costs and relieving firms from higher export costs.

 

United Nations Assistant-Secretary General and UNDP’s Assistant Administrator and Regional Bureau for Africa Director, Ahunna Eziakonwa, explained that “the model’s capacity will put money directly into the hands of people by reducing costs linked to meeting export trade requirements, increases the capabilities of individuals to maintain incomes and employment through savings in better trade environments, while paying attention to women specific concerns.

 

“Regulation as a Stimulus is a unique and timely model for African governments to create policy and structural enablers that will aid the revival and transformation of economies post-COVID-19.”

 

The Secretary-General of the AfCFTA Secretariat, Wamkele Mene, stressed that “The RaaS research shows how streamlining regulation can support implementation of the AfCFTA Agreement and potentially create savings for businesses on costs, generate stimulus, and support governments in creating favorable market conditions.

 

“Frameworks and support structures that enhance cross-border trade and reduce costs create platforms for ease of movement of professionals, enabling labor mobility across the region.”

 

The African Continental Free Trade Agreement (AfCFTA) Champion and former President of Niger, H.E. Issoufou Mahamadou, said that “the Regulation as a Stimulus initiative is an accelerator that will speed up implementation of the AfCFTA and aims at mobilizing African Leaders towards bold and impactful action in the spheres of trade facilitation and regional integration, it also gives them a credible and practical stimulus solution and post COVID-19 recovery tool.”

 

According to the World Bank, the COVID-19 crisis has brought Sub-Saharan Africa to its first economic recession in 25 years – disrupting SME supply chains and adversely affecting the informal economy, on which 90 per cent of people depend for livelihoods.

 

World Bank maintained that “the socio-economic fallout has been brutal – as over 30 million people are pushed back into poverty”.

 

The model illustrates that Africa could add $500 billion to business revenue, and create over 260,000 more jobs by 2025 – if transformative action is taken in five key areas: access to finance, business environment, infrastructure, before the border charges (export, import documents and procedures) and at the border costs.

 

Representatives of the private sector, l  lauded the initiative for its innovative approach, pledging support to its implementation.

 

“Through the RaaS model, African governments, supported by the private sector, can generate enabling environments, using frameworks such as digitization, standardization and legislation that support the sustainable growth of trade and trade-related infrastructure investment across the continent,”

 

Chief Executive Officer of the institutional investment holding platform, Africa Investor, Hubert Danso,, emphasized that “Financial regulatory frameworks such as regional agreements can widen access to innovative financing and enable cross-border financial flows.

 

“At the same time, national-level regulations could harness accountancy systems and self-assessment, increasing intra-African trade by US$35.8 billion by 2025 with an estimated annual growth of 14 per cent.”

 

The new  innovative “Regulation as a Stimulus” economic model, has  urged African governments to support Micro, Small and Medium Enterprises (MSMEs) through intentional regulatory reforms that remove trade bottlenecks so as to enhance the continent’s socioeconomic recovery from the COVID-19.

 

Through the model, African governments can turn trade barriers into accelerators that build back stronger economies and accelerate intra-continental trade.

 

The model will be taken on a roadshow across African countries – by the partnering Institutions – and continued advocacy will be made at key meetings- like AU and REC Summits.