African Inclusive Markets Excellence Centre explained

The creation of an African Inclusive Markets Excellence Center was initially proposed at the ninth joint annual meetings of the African Union Specialized Technical Committee on Finance, Monetary Affairs, Economic Planning, and Integration alongside the Economic Commission Conference of African Ministers of Finance, Planning, and Economic Development. The center's vision, mission, and objectives were presented at a side event at the African Development Week during the weekend. Thomas Salas, Special Advisor to the Private Sector, Inclusive Growth, and Sustainable Development Cluster at the UNDP Regional Service Center for Africa, shed light on the objectives and potential impact of the center. Salas highlighted the stark economic inequalities present in Africa, with some countries exhibiting a Gini coefficient as high as 65 percent, well above the 42 percent average in developing countries. This glaring inequality serves as a call to action for initiatives like the Inclusive Markets Center of Excellence, aimed at addressing economic disparities in a constructive manner. The center focuses on two main tenets: promoting wide-ranging opportunities and inclusion across key sectors, and creating access for a larger segment of the population to benefit from economic growth. Despite Africa's recent economic growth rates of around 4 to 5 percent, the benefits of this growth have not always been equally distributed among the populace. The imperative for economic transformation and the pressing need to enhance opportunities, access, and reduce inequality underscore the necessity of fostering more inclusive business practices and markets in the region. Salas emphasized the pivotal role of technology in driving inclusivity within African markets. Citing examples such as M-Pesa in Kenya, which revolutionized mobile banking and provided access to financial services for millions, and the use of drones for healthcare delivery in remote areas of Rwanda, he underscored how technological breakthroughs have the potential to promote inclusion across various sectors. However, he also acknowledged that regulatory hurdles can sometimes impede inclusivity in business ventures across Africa. Salas explained that the African Inclusive Markets Excellence Center aims to facilitate dialogue and collaboration among diverse stakeholders, including large corporations, small businesses, governments, academia, and civil society. By collectively assessing sector needs, identifying opportunities, and addressing regulatory challenges, the center intends to foster a supportive ecosystem that enhances inclusive economic practices. Salas stressed the importance of revising regulations and incentives to align with inclusive market goals and highlighted the positive impact of regulatory frameworks that facilitate collaboration between banks and telecom companies, as demonstrated in Kenya. The timeline for the establishment of the center of excellence is contingent on ministerial approval, with plans to convene a meeting in April for final endorsement. Salas expressed optimism in moving forward with the approved center's creation this year to address the pressing economic needs in Africa. The potential beneficiaries of this initiative encompass a broad spectrum, including businesses, governments, and the general population, all of whom stand to benefit from enhanced economic inclusivity and sustainable growth strategies.