Special Presidential Envoy on Climate Action, Chief Ajuri Ngelale, has disclosed that the Indian High Commissioner to Nigeria, Mr Shri Balasubramanian, paid him a visit on Wednesday, July 10, 2024, at the State House in Abuja.
Chief Ajuri Ngelale, Special Presidential Envoy on Climate Action and Mr Shri Balasubramanian, Indian High Commissioner to Nigeria, who paid him a visit on Wednesday at the State House
He said, in a statement, that he discussed new green industrial partnership opportunities with the administration of Prime Minister Narendra Modi.
Ngelale said Modi’s administration had proved to be one of the world’s most committed governments on green industrial development.
“We have agreed on actionable next steps in this sphere at a time when the two most populous democracies in Asia and Africa have many shared aspirations for their economies in the present and the future,” he said.
Ngelale said he also exchanged views with the Governor of Nasarawa State, Abdullahi Sule, on the establishment of Africa’s first eco-industrial park, Evergreen City.
“In the company of the Managing Director of the Infrastructure Corporation of Nigeria (InfraCorp), Dr Lazarus Angbazo, we recorded tremendous progress in our discussions, and a deliverable set of time-bound next steps were agreed to,” Ngelale said.
In accordance with Article 6 of the Paris Climate Agreement, some issues have been agreed upon under Article 6.8, and there is a ready document, COP29 President-designate, Mukhtar Babayev, has said.
Mukhtar Babayev
“One of the most important topics of discussion is Article 6 of the Paris Agreement. Some issues have been agreed upon, while others remain open. Discussions are currently underway, in which we are actively participating. If countries can reach an agreement, it will be a very important decision at COP29,” Babayev said.
He noted that article 6.8 of the Paris Agreement has already been agreed upon: “It is almost a ready document. The parties continue discussions on articles 6.2 and 6.4.”
Article 6 is a key part of the Paris Agreement. It allows parties to voluntarily cooperate to meet their Nationally Determined Contributions (NDCs) and mobilise financial support for developing countries.
There are three tools under Article 6:
Article 6.2: Allows countries to exchange mitigation outcomes bilaterally and use them towards their nationally determined contributions (NDCs).
Article 6.4: Establishes a new mechanism for the validation, verification and issuance of high-quality carbon credits.
Article 6.8: Provides opportunities for countries to cooperate towards the achievement of their NDCs without relying on carbon markets.
While emphasising that Azerbaijan is ready to create platforms to discuss COP29 initiatives, Babayev disclosed that countries are discussing introduction of a special tax (solidarity tax) in the field of maritime cargo transportation and aviation.
“Several countries have taken the initiative to introduce a tax on the transportation of goods by sea, air, which mainly concerns business class passengers or charter flights. Everyone’s approach is different, this is a subject of discussion. For such initiatives, we are ready to open platforms on which such issues can be discussed in Baku,” Babayev noted.
He added that among those who are actively promoting this idea is Prime Minister of Barbados, Mia Mottley.
“Decisions are not made by Azerbaijan, our country creates platforms, and 200 countries must come to an agreement during discussions,” he explained.
Last week, UN Secretary-General, António Guterres, suggested that carbon emissions and windfall profits from fossil fuel companies should be taxed (the so-called windfall tax).
According to Babayez, the third high-level dialogue “International Energy Agency (IEA)-COP29” will take place in September 2024 in the US.
“The previous IEA-COP29 dialogue with the participation of the head of the agency, Fatih Birol, took place in June in London. Our next meeting will be in this format, i.e. the third high-level dialogue will be held in New York in September this year,” Babayev noted.
The dialogues, co-chaired by Birol and Babayev in close partnership with the secretariat of the UN Framework Convention on Climate Change, are aimed at continuing to form an international consensus on ways to develop energy, reduce industry emissions to zero and limit global warming to 1.5°C.
The 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) will be held in Baku in November 2024.
The second ASEAN-China Ministerial Roundtable on Construction and Housing 2024 (ACMROCH 2024) that convened on July 4, 2024, in Kuala Lumpur, Malaysia, saw ministers and representatives adopt a high-level communique to implement sustainable urban development in ASEAN Member States and China.
Delegates at the second ASEAN-China Ministerial Roundtable on Construction and Housing 2024 in Kuala Lumpur, Malaysia
The Roundtable was organised by the Malaysian Ministry of Housing and Local Government under the theme “Building Sustainable Futures: Deepening ASEAN-China Cooperation in Housing and Urban Development for Shared Prosperity”.
The first ASEAN-China roundtable was held in Nanning, China, in September 2023. Convened by the Ministry of Housing and Urban-Rural Development of the People’s Republic of China (MoHURD), its goal was to strengthen regional cooperation in housing and urban-rural development and explore opportunities towards strengthening development cooperation to synergise common priorities. The parties agreed to continue the initiative and now look into organising annual meetings between housing ministers of the ASEAN countries and China.
“Housing and urban development constitutes an important area of economic and social development. In recent years, China and ASEAN countries have achieved remarkable progress and results in this area through pragmatic cooperation,” said Chinese Minister of Housing and Urban-Rural Development Ni Hong at the ministerial meeting in Kuala Lumpur. “We should uphold the concept that ‘cities should be built by the people and for the people,’ and taking the satisfaction of people’s need for housing as a starting point for ensuring people’s well-being.”
Housing, climate change, sustainable urban planning, harmonisation of policies and smart use of technology for the benefit of people and communities were identified as priorities by the attendees.
“One of the key takeaways from this meeting is the recognition of the interconnectivity of urban development challenges across borders. Issues such as housing affordability, resilient infrastructure development, climate change and environmental sustainability, and social inclusion are ubiquitous concerns that transcend national boundaries,” said Nga Kor Ming, Minister of Housing and Local Development of Malaysia.
“By acknowledging these shared challenges, nations can leverage on regional cooperation to craft innovative solutions that are tailored to the specific needs of different regions while drawing on collective knowledge and experiences,” added Ming.
Among priority areas and collaborative actions, ASEAN Member States and China mentioned efforts to accelerate the implementation and reporting on the New Urban Agenda, a comprehensive framework on the “how” of sustainable development.
The Kuala Lumpur consensus communique reads: “We will accelerate efforts towards the implementation of the SDGs and adaptation of the New Urban Agenda through multilevel governance, multi-stakeholder’s participation and regional cooperation towards realising the transformative commitments for sustainable urban development in ASEAN Member States and China. We welcomed the establishment of the New Urban Agenda platform for ASEAN and the wider Asia-Pacific region that aims to help Member States prepare and submit timely reports on the implementation of the New Urban Agenda.”
Global CEO of BURN Manufacturing, Mr Peter Scott, says his company plans to construct a full cooking stove manufacturing facility in Ogun, a state in Southwest Nigeria.
Chief Ajuri Ngelale, Special Presidential Envoy on Climate Action, and his assistants in a meeting with Global CEO of BURN Manufacturing, Mr Peter Scott
Scott said this during a visit to Chief Ajuri Ngelale, Special Presidential Envoy on Climate Action, on Tuesday, July 9, 2024, in Abuja.
Ngelale said the visit was sequel to an initial conversation with Scott, and the construction of the plant in Ogun State, which would be an upgrade to the company’s assemble-only plant in Kano State.
“As clean cooking has become more of a national focus, as not only a wealth-creating opportunity, but also as a central theatre of activity in the just transition, companies will be supported with clean-finance incentives to empower our people to create sustainable solutions for tomorrow.
BURN Manufacturing is an American company that started operations in 2010.
Its CEO Scott had spent 13 years as a cooking stove consultant in Central America and Sub-Saharan Africa.
In 2014, BURN launched its first full manufacturing facility in Kenya – the first and only of its kind, which is solar-powered.
Over the next three years, BURN aims to expand to Tanzania, Uganda, Zambia, DRC, Nigeria and Ghana.
Meanwhile, Ngelale said he also hosted the Brazilian Head of Embassy, Mr Joao Soares, and exchanged views on present and future opportunities in the climate action and green industrial spheres.
“As Africa’s and South America’s most populous nations, the two countries stand as critically important allies in the global south,” Ngelale said in a statement.
He said the two nations would need to deepen industrial and other forms of collaboration to advance climate justice and ensure new economic opportunity for their fast-growing populations.
Gov. Babajide Sanwo-Olu of Lagos State says his administration is committed to intensifying sustainable water sector reforms solution for residents.
Governor Babajide Sanwo-Olu of Lagos State
Sanwo-Olu made the commitment on Wednesday, July 10, 2024, at the official inauguration and signing of a Memorandum of Understanding (MoU) of the Lagos Water Partnership with Resilient Water Accelerator in Lagos.
The governor was represented at the event by Mrs Bimbola Salu-Hundeyin, the Secretary to the State Government.
Sanwo-Olu said that Lagos can provide maximum value and opportunities through its water resources.
The governor noted that, across the globe, the water resources sector is facing challenges amplified by the impact of climate change.
He said that, in spite of the challenges, Lagos is committed to achieving a water safe city that guarantees access to clean water for all residents.
“Our efforts include revamping water delivery facilities, clearing of blockades from Wetlands and canals to mitigate flood risk.
“We are enhancing the resilience of our coastal communities against climate impacts,” Sanwo-Olu said.
According to him, the state needs substantial investment to achieve the set goals.
He added that the private sector plays a crucial role in complementing the public sector efforts in achieving a robust water solution for Lagos residents.
Sanwo-Olu explained that the creation of the Lagos Water Partnership is timely.
He noted that the platform would spearhead the development and execution of an investment vision for water security in Lagos.
He added that the platform would unit key public and private stakeholders to plan, reflect and stimulate progress.
According to him, partnership is tasked with building an evidence based, developing targeted capacity and establishing systems to attract large – scale investments.
He said the partnership would serve as a consultative platform linking private sector actors with government and policy makers, amongst others.
Earlier in his remarks, the Commissioner for the Environment and Water Resources, Mr Tokunbo Wahab, said the sector remained a focus of the Lagos State Government’s investment and development efforts.
Tokunbo said that Lagos exemplifies the strategic approach.
He noted that city authorities globally often face resource constraints in addressing urban needs, making partnerships, collaborations, and alliances for drawing resources and providing vital city services.
He added that the aforementioned forward-thinking initiative, attracted the Resilient Water Accelerator, which is now collaborating with the Ministry to form the Lagos Water Partnership.
He stressed that the Lagos Water Partnership aligns perfectly with the Lagos government’s vision of leveraging partnerships to improve the environmental and water resources management.
Wahab emphasised that the Lagos Water Partnership aims to create and implement a robust investment environment sector.
“This can be achieved by channeling private investment to complement public resources and uniting key stakeholders from both sectors,” he said.
He noted that the ministry would continue to create an enabling environment to attract partners and build strategic alliances.
Dr Sulemara Watara-Abubakari of Kintampo Health Research Centre in Ghana has said that air pollution is the second leading cause of death worldwide after high blood pressure.
Air pollution: Soot spreading over a neighbourhood in Port Harcourt, Rivers State
Watara-Abubakari made the disclosure on Wednesday, July 10, at the Clean-Air Forum Lagos 2024.
The event had the theme: “Advancing Collaborations and Multi-regional Partnerships for Clean Air Actions in African Cities”.
It was aimed to arouse public consciousness on the importance of air quality and the negative impacts of air pollution.
The forum was organised by the University of Lagos in collaboration with the Makerere University, Uganda, and AirQo. It was supported by the Lagos State Government.
The researcher urged promotion of air quality for good health.
He said that continued compromise of air quality posed a huge threat to public health, causing increase in cases of lung cancer, stroke, cough, heart diseases, asthma and others.
He said that a positive change of attitude toward nature would reduce air pollution.
According to him, human activities daily saturate the air with particles that easily enter the body system and cause damages.
“Biogas, bush burning, automobile fumes and a host of other air degradation leaves the ecosystem endangered with a negative bearing on everyone.
“The combating measure that can stand the test of time is to gather empirical data to enable policymakers to make better decisions,” he said.
He called for efforts to sensitise members of the public about the dangers of air pollution in order to reduce the pressure on the health sector and save lives.
The Federal Government of Nigeria and the United States Agency for International Development (USAID) have signed a Memorandum of Understanding (MoU) on the effective implementation of N115.2 billion for Electricity Reforms and Clean Energy Transition in the country.
L-R: Director, Planning, Research and Statistics, Mrs Bosede Olaniyi; Permanent Secretary. Federal Ministry of Power, Alhaji Mahmuda Mamman; Minister of Power, Chief Adebayo Adelabu; Mission Director, United States Agency for International Development (USAID), Melissa Jones; and Coordinator, Power Africa, Richard Nelson, at the signing of a Memorandum of Understanding (MoU) between the Federal Ministry of Power and USAID. in Abuja on Wednesday
Speaking at the event which is part of government’s commitment towards electricity sector reforms, market transparency, liquidity, expanding Nigeria’s access to sustainable, reliable and affordable Power supply on Wednesday, July 10, 2024, in Abuja, Minister of Power, Chief Adebayo Adelabu, said the N115.2 billion partnership with USAID represents a pivotal step towards overcoming the long-standing challenges in providing reliable and sustainable power to all Nigerian.
“It strengthens our collaboration and provides critical resources to tackle the challenges in our Power Sector,” Adelabu said, adding that the event aligned perfectly with the national goals of achieving net-zero carbon emissions.
“We are committed to working together to ensure transparency, improve market efficiency and accelerate the transition to clean energy solutions.”
While expressing his sincere gratitude to USAID for their unwavering commitment to supporting Nigeria’s electrification efforts, the Minister emphasised that, by working with USAID and leveraging on their expertise, “we can empower the private sector, strengthen regulation and unlock the full potential of the power sector”.
Earlier in her remarks, the USAID/Nigeria Mission Director, Melissa Jones, said that the MoU would support the effective implementation of the N115.2 billion U.S. Government grant funded technical assistance programme, intended to support power sector development and reforms in Nigeria.
“Today’s goal is to strengthen collaboration between USAID and the Federal Government of Nigeria and to provide a framework for our partnership with other key actors, including state and local governments, electricity generation and distribution sectors and the off-grid sector is laudable and timely.”
Jones regretted that over 85 million Nigerians have no access to grid power, while many have suffered from unreliable power supply.
She noted that, given these challenges, many Nigerian families and businesses depend on expensive, emission-intensive gasoline and diesel backup generator.
“The Nigeria power sector’s long-standing challenges impair industrial growth and economic competitiveness, rural development, health and education sector performance and the nation’s overall economic growth and development.”
Also speaking, the Permanent Secretary, Mahmuda Mamman, pointed out that USAID has been a reliable partner to the Ministry of Power and has taken the sector to another milestone.
He revealed that the power sector has recorded a significant generation of 5000MW in 2024 and this collaboration may assist in surpassing the expected target of 6000MW by the end of this year.
Meanwhile, the U.S. Government’s Power Africa Coordinator, Richard Nelson, who was on hand to observe the signing ceremony, noted that Nigeria is at the core of Power Africa Coordination.
“I look forward to elevating our partnership to advance Nigeria’s progress towards our shared goal of ensuring access to reliable, sustainable affordable power for all,” Nelson said.
Amid the lingering crisis between farmers and herders across the country, President Bola Tinubu has announced the creation of a Federal Ministry of Livestock Development.
President Bola Tinubu of Nigeria
Tinubu made the announcement during the inauguration of the Renewed Hope Livestock Reforms Implementation Committee at the State House, Abuja, on Tuesday, July 9, 2024.
No minister has been announced yet for the new ministry.
The committee, which is mandated to provide sector-focused solutions to address the age-long farmers-herders crisis, will be chaired by the President, with the former chairman of the Independent Electoral Commission (EFCC), Attahiru Jega, as the Deputy Chairman.
The committee is expected to propose recommendations aimed at fostering a peaceful co-existence between herders and farmers while ensuring the security and economic well-being of all Nigerians.
Present at the inauguration were the Vice President, Kashim Shettima; Secretary to the Government of the Federation, George Akume; and Chief of Staff to the President, Femi Gbajabiamila, amongst cabinet members.
Recall that on September 14, 2023, the National Livestock Reforms Committee recommended that Tinubu create a “Ministry of Livestock Resources” to, among other deliverables, reduce the decades-long gory conflict between farmers and nomadic cattle herders nationwide.
Former Kano State Governor and National Chairman of the All Progressives Congress (APC), Abdullahi Ganduje, disclosed this to State House Correspondents shortly after he led the committee in an audience with the President at the Aso Rock Villa, Abuja.
It formed part of 21 recommendations captured in a document submitted to the President to enhance the Federal Government’s holistic response to the lingering cases of bloodshed.
The document spelt details of the proposed solutions where the committee advocated a reform agenda examining conflict mitigation and resource management.
“This agenda should include the establishment and resuscitation of grazing reserves as suggested by many experts and well-meaning Nigerians and other methods of land utilisation.
“Create the Ministry of Livestock Resources in line with practice in many other West African countries. In the alternative, Federal and State Governments should expand the scope of existing Departments of Livestock Production to address the broader needs of the industry,” it read.
Ganduje, who explained the complexity of the challenge at the time, said that the government’s approach must address the four kinds of herders: those who settle at home, nomadic herdsmen traversing the country, those from neighbouring West African countries, as well as those who have settled among certain ethnic tribes and indigenised.
He lamented the sector’s low productivity, saying it made Nigeria import-dependent, draining scarce foreign reserves for importing dairy, meat, and other livestock products.
Similarly, Ganduje argued that the conflicts are resulting in killings of citizens and loss of livelihoods, further affecting peaceful coexistence in the country.
“The Report grew out of the urgent need to reform and develop the livestock industry and to provide solutions to the age-long conflicts between herders and farmers in Nigeria.
“But to find the solution to achieve the desired goals, you’ll need a strong institution.
“We recommended the establishment of the Ministry of Livestock and subsequent agencies so that various aspects of the recommendations will have appropriate institutions for implementation,” the APC helmsman explained 10 months ago.
He noted that the committee also recommended a funding source, including inflows from international organisations, the private sector, and the government.
The President of the Miyetti Allah Cattle Breeders Association of Nigeria (MACBAN), Alhaji Baba Othman-Ngelzarma, has said that the creation of the Ministry of Livestock Development will unlock the trillion-naira livestock economy.
Cattle ranching
Othman-Ngelzarma, who made the submission on Tuesday, July 9, 2024, while commending President Bola Tinubu for the creation of the ministry, said that the ministry would create qualitative and productive jobs across the livestock value chain to improve the Nigerian economy.
“With this development, MACBAN believes, the hope of the Nigerian pastoralists is now achieved under the Renew Hope Agenda.
“The promise made by President Tinubu, to raise the productive capacity of the Nigerian agriculture to ensure food security is being fulfilled.
“We as an association had for years been agitating tooth and nail to actualise the creation of a stand-alone ministry to modernise livestock production system in line with global best practices,” he said.
Othman-Ngelzarma pledged support to the federal government to turn livestock production into a foreign exchange earner and reduce the farmer/ herder conflicts and its related security challenges.
According to him, Nigerian pastoralists appreciate this historic development, adding that they would reciprocate the gesture.
“On behalf of Chairman and members Board of trustees of MACBAN, his Eminence, the Sultan of Sokoto, Sa’ad Abubakar III, and entire members of Cattle Breeders association of Nigeria across the nation heartily congratulate the President and Commander-in-chief of the Nigerian Armed forces for this wonderful development.”
It will be recalled that President Tinubu on Tuesday announced the creation of the Ministry of Livestock Development.
The president made the declaration during the inauguration of the Renewed Hope Livestock Reform Implementation Committee at the Council Chambers of the State House, Abuja.
A recent visit to one of the East African countries brought me face to face with the economic and political power hidden in the informal sector of the back street workforces in Africa.
The informal sector
The economies of most African countries run on the wheels of the informal sector. Yet, this vast sector, which accounts for more than seventy per cent of the GDP in some countries, is largely unorganised, untrained and unrecognised as an economic unit.
One of the major effects of colonialism has been that successive governments since independence have tread only the established paths of the colonialists for the economic emancipation of their people. This has proven to be a colossal failure as most of these countries, except a few such as Singapore, from Africa to the Asia Pacific, have escaped the trap of underdevelopment, poverty, and want. There must be something wrong with these countries, located in different parts of the world but still experiencing similar economic situations despite their diverse political experiences and struggles.
African societies are organised differently from other societies in the world. There are unique features of the African economy that Western economic experts have not factored into their calculations, and they have made all their recommendations achieve the opposite. African economic emancipation must be homegrown to be impactful and sustainable.
Moreover, the colonial economy was never intended to empower the Indigenous population; thus, the economic structures that empowered the Indigenous population were dismantled and are still being dismantled by prescriptions that Western economic experts have been dishing out to African countries. Corruption is a serious impediment, but it is not the only challenge African countries face. Wrong prescriptions have done more damage by pauperising the generality of the population and encouraging corruption in its wake.
The informal sector plays a crucial role in African countries, acting as a significant source of employment and economic activity. However, it is largely unorganised and unregulated, and its impact is only grudgingly acknowledged.
In many African countries, informal activities, particularly agriculture and trade, contribute around 50% of the economic output and 85% of employment. This sector, characterised by its resilience and adaptability, has provided livelihoods for a sizeable proportion of the population. Despite often operating outside formal structures, the informal economy has shown remarkable self-governance and structure. With the advent of digitalisation and fintech, this sector has a huge potential for promoting financial and economic inclusion.
As Africa moves towards recovery and development, especially in the post-COVID-19 era, there is a growing recognition of the informal economy’s role in fostering inclusive structural transformations and offering pathways to formality.
The advantages for developing countries, especially in Africa, to focus on their informal economy and regulate and recognise them are numerous. It includes but is not limited to the following:
Employment: The informal sector is a major source of employment, especially with the prevalent high levels of unemployment or underemployment. Many people, particularly those with limited education or formal skills, find employment opportunities in small-scale businesses, street vending/hawking, domestic work, and other informal activities.
Income Generation: For millions of individuals and households, the informal sector generates income and supports livelihoods. It offers opportunities for entrepreneurship and self-employment, allowing people to earn a living through small businesses or informal trading activities. All the government needs to do is upgrade the skills set and quality of production in the informal sector, and it will be transformed into a source of foreign exchange inflow.
Poverty Alleviation: The informal sector often serves as a critical safety net for society’s poor and vulnerable segments. It provides opportunities for marginalised groups, such as women, youth, the disabled and rural populations, to engage in economic activities and improve their living standards. With improved earning power, they will be able to participate in government urban renewal/slum eradication programmes and sustain their environment.
Flexibility and Adaptability: Informal enterprises are typically characterised by their flexibility and adaptability to changing economic conditions. They can quickly respond to market demands, adjust prices, and introduce new products or services, contributing to economic resilience, particularly in times of crisis.
Units of Production and Provision of Services: They redirect the populace from rent seekers and economically dependent citizens to a production-focused population. Traditional manufacturing and production hubs will be organised, and the quality of their output will be improved and made exportable. Thus, transforming the entire country into an economic production hub.
Contribution to GDP: Although difficult to accurately quantify due to its informal nature, the informal sector is estimated to significantly contribute to the gross domestic product (GDP) of many African countries. It accounts for a substantial portion of economic activity, especially in agriculture, retail trade, construction, small-scale manufacturing and services.
Tax Revenue: While informal enterprises may operate outside the formal tax system, they still contribute to government revenue through indirect taxes, such as sales taxes on goods and services. However, the potential for tax evasion and revenue leakage remains challenging for policymakers seeking to formalise and regulate the informal sector. With a focused policy thrust to facilitate their operations, their confidence can be won by government and easily brought into the tax net in a win-win relationship.
Challenges and Informality: Despite its contributions, the informal sector faces challenges, including limited access to finance, lack of legal recognition and protection, inadequate infrastructure, and vulnerability to exploitation and harassment. Addressing these challenges require concerted efforts to create an enabling environment for informal enterprises to thrive while promoting their gradual inclusion or transition to the formal economy.
Economic Growth: Integrating the informal sector into the formal economy can contribute to economic growth. By recognising and formalising informal businesses, governments can expand the tax base, increase revenue collection, and stimulate economic activity. This can lead to higher GDP growth rates and improved living standards for the population.
Poverty Reduction: The informal sector plays a crucial role in poverty reduction by providing income-generating opportunities for the poor and vulnerable segments of society. Tapping into the informal economy can help lift people out of poverty by enabling them to earn a living through self-employment, entrepreneurship, and small-scale business activities.
Innovation and Entrepreneurship: Informal enterprises are often characterised by their creativity, adaptability, and entrepreneurial spirit. Tapping into the informal sector can unleash the potential for innovation and entrepreneurship, leading to the development of new products, services, and business models. This can drive economic diversification, enhance competitiveness, and foster sustainable development.
Social Inclusion: Integrating informal workers and businesses into the formal economy can promote social inclusion and reduce inequality. Government can empower informal workers and improve their socio-economic status by providing access to formal financial services, social protections, and legal rights. This can help reduce social disparities and promote inclusive growth.
Resource Efficiency: Informal enterprises are often characterized by their ability to operate with limited resources and minimal overhead costs. Tapping into the informal sector can enhance resource efficiency by leveraging existing skills, knowledge, and networks within local communities. This can lead to more sustainable resource use and greater resilience to economic shocks. Experience and expertise can be recognised, licensed and certified incentivised through a robust programme of Recognition of Prior Learning (RPL).
Cultural Preservation: Informal economies often reflect local communities, cultural traditions, practices, and values. Tapping into the informal sector while respecting cultural diversity can help preserve traditional livelihoods and promote cultural heritage. This can contribute to communities’ overall well-being and identity, particularly in rural areas.
Overall, tapping into the informal sector of the African economy can offer a range of benefits, including job creation, economic growth, poverty reduction, innovation, social inclusion, resource efficiency, and cultural preservation. However, it requires a comprehensive approach that combines policy reforms, institutional support, and stakeholder engagement to effectively harness the potential of the informal sector for sustainable development.
This in my view lies the hidden shortcut to the African economic transformation.
Only when we put Africans to work in their locality, doing what they know best at a higher level of quality and efficiency can we successfully commence the journey of sustainable national development.
By Bldr. Samson Ameh Opaluwah, Chairman, Council of Registered Builders of Nigeria (CORBON)
