Africa Economic Symposium (AES) 1st edition : The Role of Science, Technology, and Innovation in Driving Africa's Economic Growth

The Africa Economic Symposium (AES) is the Policy Center for the New South’s new Major Conference, alongside the well renowned The Atlantic Dialogues and the African Peace and Security Annual Conference (APSACO) and aspires to be a continent-wide annual gathering of prominent economists, policymakers and academics to bring together global and continental perspectives on issues that shape the future of Africa's economic development.

In each edition of the Symposium, the African Economy will take center stage with a focus on macroeconomic stability challenges and selected structural issues that shape Africa’s economic development. African policymakers are currently facing a complex macroeconomic policy landscape that requires navigating multiple trade-offs. Specifically, monetary policy needs to tamper the inflationary pressure caused by supply shocks without impeding economic recovery. Fiscal policy faces the urge to manage debt sustainability along with protecting the most vulnerable.

Furthermore, African countries need to harness the power of science, technology, and innovation to push economic growth to the next level and escape the middle-income trap. This will require revamping the nexus between educational policies, R&D, innovation, and economic policies, taking the shape of modern industrial policies that serve development through clear roadmaps and transparent objectives. In addition, as Africa remains the continent that is most threatened by climate change and chronic food insecurity, science and technological innovation has the potential to improve energy transition, and increase food production, making it a vital area of focus for promoting sustainable economic growth.

Through the course of two days, experts, scholars, and policymakers will participate in thematic discussions revolving around these issues to share, confront and complement their views on how Africa could be positioned as the new engine of growth of the world economy. The AES 2023 will also provide the opportunity to present the Annual Economic Report on Africa, which maps the dynamics of the African economic profiles at different scales.
 

Session 1: Challenges of Monetary Policy: Navigating Inflation Dynamics in the Face of Supply Shocks

The confluence of COVID-19 pandemic and the ongoing Russia-Ukraine conflict has resulted in a surge of inflation not seen for decades. Developing countries, especially in Africa, are bearing the brunt of this complex economic landscape, characterized by a sluggish recovery, rising unemployment and poverty rates, tight international financing conditions, soaring public debt, and persistent inflationary pressures. Central banks in Africa are facing the challenge of balancing the need to support economic growth with the need to prevent inflation from spiraling out of control.

This session will explore the complex and interrelated issues surrounding monetary policy in Africa and the strategies that central banks can employ to navigate inflation dynamics in the face of supply shocks. As such, this session will address the following questions:

- How can African central banks adapt their monetary policy frameworks and tools to effectively address supply shocks?

- How can African central banks effectively manage the tradeoff between inflation and growth in the current environment?

- What are the potential long-term effects of the current wave of monetary policy tightening in Africa?

- What policy mix frameworks could be used to address macroeconomic imbalances in African economies, and how can they be tailored to the unique characteristics of these countries?

Session 2: Challenges of Fiscal Policy: Managing Debt Sustainability

Debt is an important source of financing for economic growth and development in African countries, but it also presents significant challenges, particularly in times of economic crisis. With the COVID-19 pandemic, the importance of strengthening the welfare state in Africa has been highlighted, resulting in increased social spending. However, the financial resources needed to support such spending are not always abundant or readily accessible in many countries on the continent. This situation has led to a new wave of debt accumulation that could have serious implications for the future of African nations. To tackle this challenge, it is crucial to implement sustainable debt management strategies and seek support from the international community.

The focus of this session will be on the challenges African countries encounter in managing fiscal policy and ensuring debt sustainability. The session will revolve around several key questions, including:

- How can African countries build fiscal capacity through domestic revenue mobilization?

- What are the most effective strategies for managing and improving the efficiency of public expenditure in Africa?

- How can fiscal rules be utilized to mitigate the pro-cyclicality of fiscal policy?

- What is the significance of international cooperation in managing debt sustainability through innovative debt relief programs?

Session 3: Promoting Innovation-led Growth in Africa

Historically, innovation in Africa has lagged far behind advanced economies and other developing regions. In the heart of a continent brimming with potential, a new frontier emerges – one that seeks to fuel economic growth through innovation. Africa has missed the past three industrial revolutions and must not miss this 4th industrial revolution and adopt new technologies to increase productivity, create more employment opportunities, and promote inclusive growth. Leapfrogging through technology and innovation is a key strategy that can help African countries bridge the technology gap and address the mismatch between technological capabilities and the labor market.

- What are the main challenges facing African countries in promoting innovation-led growth, and how can they overcome them?

- How can R&D help bridge the technology gap in Africa and contribute to boosting productivity growth?

- What are the best practices for targeting investment in innovation to address the technology gap and promote inclusive growth in African economies?

- What specific roles can international organizations, the private sector, and academia play in supporting innovation-led growth in Africa?

Session 4: Industrial Policy for Innovation and Technology Upgrading in Africa

After decades of market-oriented free-trade policies supposed to efficiently allocate resources across industries in a way that reflects consumer preferences and technological possibilities, industrial policy is making a strong comeback. Such “Laisser-Faire” policies have undoubtedly acted as a catalyst for income catch-up and contributed significantly to poverty reduction across developing countries but were certainly not without blemish. There is some evidence that the set of economic policies prescribed by the Washington Consensus led to the demise of certain infant industries, limited the creation of local value-added, and trapped these developing countries in a technological dependency. Consequently, government intervention in designing the industrial policy is today more than justified to address the different market imperfections. As far as the African continent is concerned, there is a real need to foster innovation and approach the technological frontier. Africa cannot rely solely on FDI to develop its domestic industries and foster economic growth overall. Besides, African policymakers should also learn lessons from the failure of previous import-substitution policies, that didn’t ensure a rise of competitive local industries.

- How can Africa best negotiate this new turn to industrial policy design?

- What should be done to ensure that the next industrial policy will foster innovation and encourage intellectual protection?

- How can the African continent make the best use of its comparative advantage in terms of population, to re-skill the human capital?

Session 5: The Power of Innovation for Sustainable Development: Meeting the Challenges of Climate Change, Energy Transition, and Food Security in Africa

The deleterious effects of climate change on African economies and communities have reached a point of grave concern. The severity and frequency of these effects have culminated in an amplification of economic hardship, a reduction in prosperity, and a deceleration of societal progress, all of which have compounded poverty and food insecurity, thereby impeding advancements towards the Sustainable Development Goals. To address this issue, it is imperative to tap into the full potential of technological innovation, which can redirect unsustainable development trajectories on multiple fronts and sectors, including the adoption of climate-smart agricultural techniques and the implementation of low-carbon technologies such as carbon capture and storage systems. Nonetheless, fostering such innovations hinges on tackling other pivotal elements, such as the development of business opportunities, the optimization of trade conditions for environmental goods and services, the mobilization of finance and investment, and the enhancement of institutional capabilities.

- How can technology-enabled public-private partnerships support sustainable development in Africa, and what are some key examples of successful partnerships in this context?

- What are the most promising climate-smart agricultural innovations for sustainable food production in Africa, and how can they be scaled up effectively? How can low-carbon technologies and infrastructure development be integrated into sustainable development strategies in Africa?

- How can innovative financing mechanisms be leveraged to support sustainable energy projects in Africa, and what are some best practices for their implementation?

- What are the most important considerations in integrating low-carbon technologies and infrastructure development into broader strategies for sustainable development in Africa, and what are some potential barriers to their adoption and implementation?