The latest Human Development Report of 2023/2024, published by the United Nations Development Programme, reveals that African countries have the lowest Human Development Index (HDI) score. Out of the 52 African countries ranked in the HDI, only four made it into the top 100.
The report indicates that the continent’s strong economic growth has not necessarily translated into improved global rankings. African governments must balance humanitarian aid with sustainable initiatives to promote self-sufficiency and advance human development. Civil society organisations must support community-led development programmes, leveraging successful models. Also, African trade policymakers must implement regional trade agreements to promote open markets.
Africa’s development requires a shift away from foreign aid, which can create a culture of dependency, stifling local innovation and entrepreneurship. Governments that rely heavily on external assistance may fail to strengthen their tax bases and institutions. Such reliance can undermine a country’s potential for fiscal autonomy, leaving it vulnerable to the whims of foreign donors.
For example, the United States government cut aid distributed by its international development agency, disrupting foreign aid programmes. As a result, many African countries are scrambling to fill the resulting funding gap. This unpredictability can have devastating consequences, as seen in Lesotho’s HIV/AIDS programmes. African governments must reduce their reliance on foreign aid and focus on strengthening local institutions and industries to achieve sustainable growth.
READ MORE: Interest Rate Caps in Africa: A Barrier or Boon to Economic Freedom?
The continent faces a productivity gap in the services and agriculture sectors. Inadequate training, informal work arrangements, and inefficient use of technology hinder productivity in low-skilled service jobs. Investing in employee training and digital technologies can enhance service productivity. South Africa’s Afrika Tikkun services and the Moringa School in Kenya exemplify how such training can be implemented.
Equally, in agriculture, limited access to irrigation and quality seeds hinders productivity. Governments and businesses can address these gaps through investments in agricultural inputs and public-private partnerships. Effective trade policies can incentivise private sector investment in digital infrastructure, such as fibre-optic cables and cellular networks.
Governments can offer tax credits or deductions, specifically for investment in digital infrastructure projects. These incentives can support projects that expand broadband access or adopt emerging technologies, such as artificial intelligence and data analytics. Best practices like Rwanda’s Vision 2050, Ghana’s Planting for Food and Jobs, and Kenya’s devolution demonstrate the effectiveness of a multifaceted approach to development.
Civil societies can support community-led programmes to drive inclusive development in Africa. Communities can adapt proven development models like Village Savings and Loans Associations (VSLA) and Community-Led Total Sanitation (CLTS). These innovative approaches can enhance financial inclusion, entrepreneurship, and public health.
READ MORE: Mending the Slow and Uneven Path to Gender Equity in Sub-Saharan Africa
For example, VSLA enables community members to pool their savings and provide loans to one another. At the same time, CLTS empowers communities to take charge of their sanitation and hygiene, leading to improved health outcomes. Experienced practitioners or certified trainers can train local facilitators to effectively ramp up VSLA and CLTS programmes.
Also, African trade ministers and African Union officials should seize opportunities from regional trade agreements, such as the African Continental Free Trade Area. These agreements offer numerous benefits, including economic growth, reduced poverty, and increased competitiveness, which can foster development on the continent.
Regional trade agreements can increase market access for African businesses, allowing businesses to expand their customer base and grow exports. Economic integration among member states, promoted by improved market access, will foster economic growth, investment, and job creation.
Africa’s human development challenges require a multifaceted approach. Prioritising human-centred development and cooperation can unlock Africa’s potential for a brighter future.
Katleho Mositoane is a writing fellow at African Liberty, a U.S.-based think tank focused on advancing individual freedom, peace, and prosperity in Africa. She’s available at kmositoane@studentsforliberty.org or on X as @KatMos95. The opinions expressed here are the writer’s own and do not necessarily reflect those of The Chanzo. If you are interested in publishing in this space, please contact our editors at editor@thechanzo.com.