Shawgei Salah Ahmed
The economy of the African continent is going through very difficult conditions, due to the spread of diseases, the most important of which are Covid 19, malaria, and AIDS. The economy of the continent, which last year recorded its first recession in half a century (-2.1%), is expected to record a growth of 3.4% again. In 2021 and 4% in the following year, and many studies are indicating that Africa, according to the estimates of the International Monetary Fund, that Africa is at risk of a financing deficit of 290 billion dollars by 2023, and this is a real threat to finance sustainable development in Africa which prepares efforts for every country in Africa to find new and safe financing opportunities.
Based on the foregoing, Sudan sought in the previous period to review its external relations to search for friends who could help Sudan in financing sustainable development in Sudan, and in this context, the visit of the Vice President of the Transitional Sovereignty Council in Sudan to Turkey to strengthen the talks on ” The fields of energy, oil, agriculture, livestock, infrastructure, roads and bridges, transportation and transportation.
The first visit by a Turkish president since 1956, Erdogan visited Sudan, for three days, accompanied by a delegation of about 200 businessmen, and during the visit 22 agreements were signed between the two countries in various fields, Bilateral relations have witnessed a wide movement since the visit of Turkish President Recep Tayyip Erdogan to Sudan, in December 2017, as the two countries signed 22 agreements and memoranda of understanding in several areas, including these agreements and memoranda of cooperation in the fields of education, agriculture, industry, trade, and the iron and steel industry. , Prospecting, energy exploration, developing gold extraction, establishing grain silos, health services, and thermal and electrical generation.
The priorities for financing sustainable development in Sudan
The biggest problem for the Sudanese economy now is that Sudan consumes more than it produces imports more than it exports. And that he continued to be financed by borrowing from the banking system, and suffering from a deficit in the balance of payments, and a deficit in the balance of trade.
Therefore, the very important priority for the reform of sustainable development in its economic and social aspect is the crisis of bread and cooking gas, the terrible deterioration in the value of the national currency, and the provision of minimum wages for the working classes, because all solutions to eliminate poverty pass by workers and farmers seeking a daily livelihood.
The second priority in terms of importance is reforming the agricultural and livestock production sectors, given that the majority of Sudan’s populations are farmers and herders. Instead of exporting a billion dollars worth of livestock life, Sudan possesses more than 130 million head of livestock – it can be exported. What would be worth three or four billion dollars, if he set up slaughterhouses, and benefited from leather and other things. This applies to agriculture as well. Instead of exporting agricultural raw materials, factories can be established for food production in all agricultural fields, the so-called agricultural industrialization, that is, the industry based on agricultural products.
The third priority in terms of importance is a political and economic solution to a deficit in the general budget because the state spends more than its revenues, so it is forced to borrow, which in turn creates a deficit in the internal budget. Because Sudan exports more than three billion dollars, while it imports up to nine billion dollars. This is a huge deficit. This directly causes inflation and a decline in the local currency, weak purchasing power, and this crisis continues, and the solution can be to invest in the infrastructure of large projects that exploit Sudan’s resources, such as the work of dams in Kordofan, Darfur, and eastern Sudan to promote agriculture and produce cash crops that increase the value of resources. Exporting abroad, in addition to strengthening the human cadre, is the real wealth of any country.
Returning to Turkish financing, we must understand that total reliance on output will not benefit and that Turkish financing will not solve the economic problem in Sudan if the political and economic decision-makers are treating the symptoms and not diseases.
Turkish financing for sustainable development in Sudan The value of agreements with the Turkish side amounted to about 10 billion dollars, and Sudan’s interest in the agreements exceeds 75%, as more than 22 agreements and memoranda of understanding have been signed in several fields, including these agreements and memoranda of cooperation in the fields of education, agriculture, and industry. , Trade, iron and steel industry, exploration, energy exploration, development of gold extraction, construction of grain silos, health services, and thermal and electrical generation.
Now we need to focus on long-term planning, at least for the next ten years, to restructure the economy. This government provides the first building blocks, and the coming governments continue in the same plan and find effective future solutions. Turkey must benefit from the Turkish experience in reorienting the economy, fighting inflation, relying on manufacturing, and benefiting from the country’s resources, as Turkey is one of the most successful models in the world and the closest to implementation in Sudan.
The reality of sustainable development financing in Africa, no place for the lazy:
Africa Arena released a new report using Partech data, which predicted that virtual capital financing for African startups will reach between $ 2.25 billion and $ 2.8 billion by 2021, a record for the continent, as venture capital investments in Africa have reached their highest level on record. Launch in 2019, when 234 tech companies raised $ 2.02 billion in 250 financing rounds, a 74% increase over 2018 figures.
While the epidemic has led to major setbacks in 2020, with growth declining by 29%, the good news is that major improvements are expected, as venture capital investments in the continent during 2022 are expected to rise sharply to between 3.8 billion. $ 4.7 billion and $ 4.7 billion, while the upper range is expected to reach $ 6.8 billion by 2023.
Nigeria and Kenya are hot spots for venture capital investment in Africa, with $ 307 million and $ 305 million raised in 2020 and 2019, respectively, Egypt is also a major player, as Egyptian technology startups raised $ 269 million in financing last year, ranking third in Africa behind Kenya and Nigeria, while South Africa got $ 259 million, Rwanda has positioned itself as the epicenter of East Africa, and it has achieved great success with raising $ 126 million in 2019.
Unfortunately, the epidemic has halted its astounding progress and that number has decreased by 91% to just $ 11.6 million last year.
In the end, the solution to the economic problems in Sudan and Africa must be collective, with the help of the African Union and trusted international friends, to build a strong infrastructure for the advancement of the economy. Now, the African Union is establishing a fund to finance the construction of roads, railways, and power stations that the continent desperately needs. To solve the annual infrastructure financing deficit in the continent, which ranges between 60 and 90 billion dollars, according to estimates, to reach a major goal at the continental level, which is to accelerate agglomeration and merge the merging of the disparate individual markets into a unified free trade area.
Shawgei Salah is a researcher, writer, environmentalist and a member of the Young African Leaders Forum (YALF). He can be contacted at Shwgy2000@gmail.com