I salute you dear listeners and viewers.

It gives me great pleasure, when I am asked,

or get an opportunity to talk about Africa. Today I am going to briefly talk about:

Suggested roadmap for transforming Africa into a global competitor

I am Fellow Nathan, from Fenlina Management consultants, sharing my views on

Governance and Entrepreneurship initiatives that will make Africa sustainable and
globally competitive.

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Q1. We have heard a lot about Africa’s problems and achievements as well.
Africa wants to be globally competitive. What are some of the issues that in
your opinion would be quick-wins in this regard?

A1. internal

► EMPOWER THE AU:

☼ Give it decision making powers on behalf of Africa, bargaining power

on the international platform, e.g how to deal with the war in Ukraine,
Palestine. Sudan.

☼ Authority over matters that affect the continent as a whole,

☼ Oversee and liaise with the various blocks e.g. EAF, SADC, IGAD,
ECOWAS, in governing the continent especially honouring of
commitments.

► CREATE A FAMILY (CONTINENTAL ARMY, REMOVE BOARDERS, ONE

CURRENCY, ONE LANGUAGE, ONE PASSPORT, ETC.)

Q2. What do you envisage as the approach that Africa must use to address
these matters?

☼ Continental army as part of the solution: preventing foreign

aggression, invasion, assassinations, overthrow of governments,

☼ Remove boarders: smooth and faster flow of people and goods,

interaction of people, address crime syndicates and security issues in a
united manner. E.g. strengthening the already existing bodies, like
Interpol.

☼ One currency: minimise currency & exchange rate inconveniences.

 ☼ One language: Teaching Swahili in schools. Making it compulsory
at primary school level. It will make communication easy, bringing
Africans culturally closer.

► RESOLVE / PREVENT CONFLICTS

☼ Take the gun out of Internal conflict resolution completely,

☼ Use other peaceful means as a last resort to enforce compliance,

► INSTALL / PROMOTE GOOD GOVERNANCE

☼ Create credible governance structures

☼ Draft a constitution for Africa

☼ Ensure compliance to the constitution

► ACCELERATE ECONOMIC DEVELOPMENT

☼ Foreign Direct Investments,

☼ Implement and monitor the SDG Agenda 2063

☼ Implement and monitor the Agenda 2063, “The Africa we want”,

☼ Economic empowerment and sensitisation,

☼ Etc.

A2. External

☼ Get permanent seats in the G20

☼ Bargain for revisiting of the Financial Architecture to address the

borrowing and Debt burden for sovereign debt.

● Predatory approach to lending: High interest rated to African

countries because of perceiving Africa as highly risky borrowers,
Asset forfeiture, biased risk analysis,

● African public debts are mainly held by non-African lenders and in

foreign currencies (See article below):

● Private sector involvement in lending: (See article below)

☼ To promote peace in the whole world, through dialogue, and not

through the barrel of the gun.
 ☼ To support the countries that historically supported, and are still
supporting Africa in fighting against apartheid, colonisation and
recolonisation.

Q. What do all these mean to the common man?

A. All these talk to the SDG Agenda 2030. Having the ability of the masses to
have peace, justice, security, which are good catalysts for entrepreneurship
(creating employment, establishing projects and program for economic
benefits, protecting our ecosystem and tapping into continent-wide
opportunities, big and small.

Kindly support our channel by subscribing, giving the video a like, and giving
your comments. You mean a lot to us and we appreciate your time,
participation and contribution.

Until next time, God bless you

Part 2

Q2. African public debts are mainly held by non-African lenders and in foreign
currencies. What does this mean and what are the financial implications?

African countries' public debts are uniquely burdensome, in part because ((Mo
Ibrahim report 24 Aug 2023):

☼ They are mainly owed to international rather than domestic lenders,

making debt harder to refinance or restructure. Of the 10 African
countries with data on creditor residency, seven owe more than half of
public debt to overseas creditors. By contrast, over 70% of public debt
in Canada, China, the UK and US is owed to domestic creditors.

☼ External lenders prefer to lend to developing countries in their own

currency or international ‘hard currencies’ (e.g. US dollar or Euro).
Foreign currency debt carries an exchange rate risk. Industrialised
countries usually borrow in their own currencies e.g. In the UK (£),
China (CN¥), Canada (C$), and the US (US$) over 98% of central
government debt is denominated in the local currency. By contrast,
over 70% of Africa’s total public external debt is US dollar
denominated.
Q3. Under private sector involvement, can you please explain more about what
you really mean?

Private sector involvement in lending African Countries

A4.Credit rating adjustments (Mo Ibrahim report 24 Aug 2023)

 Africa: currency of public external debt (2021)

Most debt is owed to private sector creditors, who charge African

countries higher interest rates
☼ In 2021, more than one third (40.4%) of Africa’s public external debt was
owed to the private sector. Post-2008 private sector lenders made more credit
available to Africa in order to obtain higher returns than the low rates on offer
in the Global North following the financial crisis.
☼ Private sector lenders, primarily motivated by financial considerations, lend at
market rates considerably more expensive than rates offered by official
creditors. Many African governments for their part were keen on private credit,
motivated by the desire to reduce dependence on aid or policy-conditioned
loans from official creditors.
Other challenges
☼ The amount African countries must pay to borrow from the private sector is
largely determined by Western rating agencies. The ‘big 3’ rating agencies -
Fitch, Moody's and Standard & Poor's (S&P) - are all headquartered in
London or New York and only have two offices in Africa between them, both
in Johannesburg. They have faced accusations of overstating the risk of
lending to African countries.
Solutions:
☼ The African Union (AU) is moving forward through the African Peer Review
Mechanism (APRM) with a plan to establish an African Credit Rating
Agency as an independent entity to provide alternative and complementary
rating opinions for the continent.

Q. What does all this mean to the common man?

A.

Kindly support our channel by subscribing, giving the video a like, and giving
your comments. You mean a lot to us and we appreciate your time,
participation and contribution.

Until next time, God bless you