Peter Obi, the presidential candidate of the Labour Party in 2023, recently addressed the Inaugural Colloquium on Governance, Trade, and African Unity in Kenya.
Delivering a keynote address titled “Fiscal Discipline in Governance: Strategies for Economic Stability and Growth in Africa,” Obi emphasized the critical need for African governments to prioritize fiscal discipline and effective resource management to enhance productivity.
Obi highlighted the detrimental effects of fiscal indiscipline, which have resulted in unserviceable debts, rising unemployment, and inflation, ultimately impoverishing many African nations. He contrasted this with the success stories of rapidly growing economies like China, India, Indonesia, and Vietnam, which have significantly reduced poverty through prudent fiscal management.
“African leaders cannot continue with the fiscal indiscipline that has led to unproductivity and consumption,” Obi stated. He pointed out that sub-Saharan Africa is home to over 60% of the world’s extremely poor people, out-of-school children, and youth unemployment.
Obi called for a shift in focus from consumption to production. He argued that strict fiscal discipline should be implemented to ensure that resources are directed towards sectors like health, education, and job creation. This approach, he believes, is essential for pulling people out of poverty and fostering economic growth and development across the continent.
“We must, henceforth, stop investing in consumption and start investing in production for the economic growth and development of Africa,” Obi asserted. He concluded by expressing his vision for a new and better Africa that benefits all its citizens and takes its rightful place among the world’s developed continents.
