Africa's economic growth can be attributed to the recent surge in global commodity prices and strategic public expenditure programs post-COVID, Azwimpheleli Langalanga, Executive Director at Africa Geostrategic Advisory, tells Sputnik Africa.
Langalanga highlights how the continent's reliance on commodities like oil, minerals, and raw materials has played a pivotal role. He notes that the “commodities boom” has been the main driver of economic growth. Public spending initiatives introduced after the pandemic to revitalize economies have further boosted progress.
“We have been experiencing a commodities boom in the last couple of years. Most of these economies are based on raw materials, and the rise in their prices is the main driver of growth. Additionally, post-COVID, countries injected significant public expenditure programs to kickstart their economies,” he says.
Reflecting on Africa’s post-Cold War economic struggles, Langalanga points to the damaging effects of Bretton Woods institutions’ policies during the unipolar era. He explains how fiscal austerity measures and stringent loan conditions stifled growth and left African economies in vulnerable positions. These consequences, he says, remain evident today.
“The economic programs rolled out by Bretton Woods institutions were based on the so-called neoliberal agenda or the Washington Consensus, where the main focus was fiscal consolidation, austerity measures, and the requirement for countries to cut down on social programs to qualify for IMF and World Bank loans. These policies were implemented in countries that lacked an economic base. The conditionalities attached to these loans by the World Bank and IMF caused significant damage to African economies, and the consequences we still live with today,” he emphasizes.
Now, as the world transitions toward multipolarity, he sees a new opportunity for Africa. He underscores the importance of African nations asserting their agency within global alliances like BRICS. According to him, BRICS offers an alternative development philosophy, contrasting with the approaches of the World Bank and Global North.
Also featured in this podcast is:
A speech by the Russian President Vladimir Putin at the VTB Russia Calling Investment Forum, where he revealed the creation of a fund dedicated to fostering cooperation between Russia and Africa, a move that highlights the growing partnership and investment potential between Moscow and the region.
To find out what else our guest had to say, tune in to the Global South Pole podcast, brought to you by Sputnik Africa.
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