IMF’s Segura-Ubiergo on how SSA benefits from governance dividend

Sub-Sahara African countries that invest in good governance can reap the benefits of what the International Monetary Fund terms as the "governance dividend". The IMF recently hosted a virtual book launch event with region-specific insights, shedding light on the success stories of Botswana, Rwanda, Seychelles, and Cape Verde. Alex Segura-Ubiergo, one of the authors of the book, highlighted some key pillars of governance that have emerged from these countries, emphasizing the importance of political commitment to transparency and good governance. In the book, Segura-Ubiergo discussed the importance of aspects such as the presentation of budgets, asset declarations by public officials, the presence of anti-corruption agencies, an independent central bank, and the rule of law and property rights. These factors contribute to the credibility of governments and provide reassurance to investors, showcasing a commitment to serving the interests of citizens. When examining the broader African continent, Segura-Ubiergo emphasized the urgent need for increased public investment, particularly in areas like infrastructure, health, and education. While boosting investment levels is crucial, attention must also be given to the efficiency and transparency of these investments, ensuring value for money and minimizing waste. Another critical area highlighted in the book is the importance of creating an attractive business environment that protects investments and upholds the rule of law. Additionally, providing access to information for citizens is essential for accountability and transparency, enabling informed decision-making and fostering government accountability. The COVID-19 pandemic posed unique challenges for governance and accountability in the allocation and management of funds. Segura-Ubiergo stressed the need for audits to track the utilization of resources and ensure they reach vulnerable populations. Transparency in procurement processes, including disclosing beneficial ownership of companies, is vital to prevent corruption and ensure resources are used effectively. Overall, the experiences of Botswana, Rwanda, Seychelles, and Cape Verde offer valuable lessons for other African countries seeking to enhance governance practices and leverage the governance dividend for sustainable development and economic growth.