Revive rural communities for inclusive growth

Lazarus Sauti

Seven of the ten fastest growing economies in the world are in Africa, but the most unfortunate thing is that the growth is not inclusive as it is concentrated in particular sectors or geographical areas within countries, excluding large sections of people.

Almost 70 per cent of Africans live and work in rural areas, but rural economies are still undervalued by governments, international development lenders as well as policy advisers.

To foster inclusive growth – defined by the African Development Bank (AfDB) as the economic growth that results in a wider access to sustainable livelihood opportunities for a broader number of people, regions, or countries, while protecting the vulnerable, all in an environment of fairness, equity, and political plurality – the nature of the new growth in Africa should be the one that opens up rural economies.

The AfDB President-Elect, Dr Akinwumi Adesina, says the revival of rural economies must be the new economy of Africa as it lifts millions out of poverty.

“I believe it is time for a new Africa, one with inclusive growth as well as prosperity for all, and revival of Africa’s rural economies to lift millions out of poverty must anchor the new economy of Africa,” he noted.

Retired Brigadier General Walter Kanhanga, Member of Parliament for Guruve North in Zimbabwe, asserts that African nations to succeed, revival of rural economies is key in poverty alleviation.

“Revival of rural economies fosters inclusive growth, lifts the majority of Africans out of poverty by creating employment opportunities, and connects remote areas to growth poles through better infrastructures,” he said.

Crispen Sukume, an agro-economist agrees with reviving rural economies as a cornerstone to poverty eradication and inclusive growth.

“In economic circles, there is general agreement that in rural areas, more business-oriented growth and the development of small agri-businesses, in particular, is a crucial driver of industrial growth, food security, and export expansion,” he said.

Thembelani Tukwayo of Local Enterprise Workspaces, a South African organisation that works with poor communities, thinks massive investment in rural infrastructure sprouts new economic opportunities in the long term while creating massive employment in the short term.

“Investing in rural infrastructure significantly creates millions of badly needed jobs, and enhance food security. It also attracts out of town investors,” he said.

Professor Sheunesu Mpepereki, University of Zimbabwe lecturer, believes political will, courage and good corporate governance are necessary tools required if African countries are to effectively revive rural economies and foster inclusive growth.

“With good corporate governance and transparency buttressed by tight legislative controls to prevent abuse, countries in Africa can truly revive rural economies and achieve inclusivity for their respective broad populations.

“All that is required is the political will, financial commitment and the audacity to do that which is right, but not contained in current economics textbooks: thinking outside the box,” he said.

Professor Mpepereki added that Africa must find innovative ways of giving all citizens a stake in the economy as it makes for political and economic stability.

“Africa’s rural sector represents a lot of developmental opportunities in all sectors. Countries just need to spread development and this can happen if they revive critical sectors such as agriculture, provide access to credit in addition to building physical and social infrastructures such as roads, energy, education and health facilities,” he said.

Gilbert Fossoun Houngbo, the International Labour Organisation (ILO) Deputy Director-General for Field Operations and Partnerships, says boosting agriculture and building around it a strong rural economy is crucial for Africa, a fact shared by Dr Adesina.

“We must end the era of prodigal economics, where Africa ignores its own agricultural potential and turns itself into a net food importing region, spending a whopping $35 billion on food imports annually. Yet, 65 per cent of all available arable land to feed the 9 billion people in the world by 2050 lies in Africa,” he said.

Rtd Brig. General Kanhanga, who is Zimbabwe’s Deputy Minister of Tourism and Hospitality Industry, is of the view that promoting rural areas should take in combining agriculture with industrial and service activities to stimulate synergies and diversification, as well as to seize new opportunities in Information and Communication Technology (ICT), tourism, bio-technologies, environment protection and renewable energy generation, for instance.

He adds that Africa is a continent believed to be rich in minerals such as gold, coal, platinum, oil and gas to make a significant contribution to the economy.

“It is bitterly ironic that the rural regions in most African countries, as rich as they are in natural resources, are trapped in a cycle of poverty,” Rtd Brig. Kanhanga said.

Kanhanga also says to revive rural communities and use them as pillars of socio-economic expansion, government sectors in the region must significantly ensure that any planning process is inclusive.

“Actually, the planning process and the exploitative formula of the natural resources in Africa should be inclusive and spell out a clear outline of the development activities both in terms of resource-use, duration as well as the speed of development,” he said.

Sharing similar sentiments, Tukwayo adds that government sectors and development partners in Africa need to be innovators if they are to push boundaries of the unknown world, and transform the continent socio-economically.

“Innovation is change that unlocks new value. Therefore, governments need to be innovators, and they must develop innovative policies that improve the daily lives of the rural poor and enhance their power to chart and lead their own social and economic transformation.

Lennart Båge, former President of the International Fund for Agricultural Development (IFAD), puts it clearly: “Vibrant rural economies are vital not only to eradicating poverty in rural communities, but to economic growth in poor countries as a whole.

“Furthermore, poverty eradication is the foundation for global peace and security and quality of life for all.

“The public, private and civil sectors must (therefore) work together, coherently and efficiently, to translate their commitment to rural development into policies, action and investments that improve the daily lives of the rural poor and enhance their power to chart and lead their own development into the future.”