Programme Director, Chairman, KPMG International and other KPMG leaders, Distinguished participants, Ladies and gentlemen:
In 1856 Tiyo Soga was licenced in Glasgow to practice as a Minister of the Presbyterian Church of Scotland. This was after he completed his studies at the University of Glasgow and the Church itself.
He then returned home to South Africa in 1857 to practise as a Pastor in the Eastern Cape, where he was born. Objectively, the Rev Tiyo Soga was the first among the modern African intelligentsia in our country.
In 1865, a European missionary in South Africa, Rev. John A Chalmers, published an article in a newspaper, King William’s Town Gazette and Kaffrarian Banner, entitled ‘What is the destiny of the Kaffir race?’
Irritated that the colonised Africans were resisting conversion to Christianity and acceptance of colonial rule, Chalmers said these natives, then called Kaffirs by the coloniser, were doomed to extinction. Here is part of what he wrote:
“Imperceptibly, by their disregard to education and its advantages, they are going headlong to ruin, rising only to the unenviable position of wagon-makers and grooms. Neither this generation nor the next may witness this extinction, but it is a law that wherever education is at a low ebb the mass of the people must sink.”
Rev Tiyo Soga took strong exception to this prediction of African extinction by a fellow Pastor and submitted a Letter to the same newspaper which had published Rev Chalmers’ article, the King William’s Town Gazette and Kaffrarian Banner.
Among others, in his 11 May 1865 Letter Rev Soga said:
“Africa was of God given to the race of Ham. I find the Negro from the days of the old Assyrians downwards, keeping his ‘individuality’ and ‘distinctiveness’ amid the wreck of empires, and the revolution of ages. I find him keeping his place among the nations, and keeping his home and country. I find him opposed by nation after nation and driven from his home. I find him enslaved – exposed to the vices and the brandy of the white man. I find him in this condition for many a day – in the West Indian Islands, in Northern and Southern America, and in the South American colonies of Spain and Portugal. I find him exposed to all these disasters, and yet living–multiplying ‘and never extinct’…
“I find the negro in the present struggle in America looking forward – though still with chains in his hands and with chains on his feet -yet looking forward to the dawn of a better day from himself and all his sable brethren in Africa. Until the Negro is doomed against all history and experience – until his God-given inheritance of Africa be taken finally from him, I shall never believe in the total extinction of his brethren along the continent…I believe firmly that among the Negro races of South Africa events will follow the same law, and therefore neither the indolence of the Kaffirs, nor their aversion to change, nor the vices of civilization, all of which barriers the gospel must overthrow, shall suffice to exterminate them as a people.”
I apologise if any among us found this quotation too long and tedious.
However, I am certain that though Rev Soga wrote these words almost 160 years ago, yet we can feel the passion in the oration – passion about the better destiny of all Africans in Africa and the African Diaspora.
The words clearly expressed a very firm commitment to Pan Africanism!
In 2013, on the occasion of the celebration of the 50th anniversary of the establishment of the Organisation of African Unity, the OAU, the Assembly of African Heads of State and Government of the African Union adopted what they described as a Solemn Declaration.
Among others, the Solemn Declaration says that it:
“evokes the uniqueness of the history of Africa as the cradle of humanity and a centre of civilisation, and dehumanised by slavery, deportation, dispossession, apartheid and colonialism, as well as our struggles against these evils, which shaped our common destiny and enhanced our solidarity with peoples of African descent…” and,
“reaffirms our commitment to the ideals of Pan Africanism and Africa’s aspiration for greater unity, and pays tribute to the Founders of the Organisation of African Unity (OAU) as well as the African peoples of the Continent and in the Diaspora for their glorious and successful struggles against all forms of oppression, colonialism and apartheid…”
The current comprehensive AU policy for the transformation of Africa, Agenda 2063: the Africa We Want, also comes out of the Solemn Declaration.
In its founding document Agenda 2063 itself says:
“We echo the Pan-African call that Africa must unite in order to realise its Renaissance. Present generations are confident that the destiny of Africa is in their hands, and that they must act now to shape the future they want.”
I would like to believe that all of us would have realised that recent and current aspirations expressed by Africa’s leaders and institutions about the future of the Africans are directly linked to the passionate vision for Africans on our Continent and in the African Diaspora communicated by Rev Tiyo Soga almost 160 years ago.
We have convened at this Conference under the important theme – The Path to One Africa.
This is exactly why I began my remarks by quoting the 1865 Letter by Rev Soga.
A critically important paving stone in that Path to One Africa is what the AU Solemn Declaration of a decade ago said was commitment to the principles of Pan Africanism and the African Renaissance.
In this context I am glad that the document ‘Agenda 2063’ itself says:
“Agenda 2063 will not happen spontaneously, it will require conscious and deliberate efforts to nurture a transformative leadership that will drive the agenda and defend Africa’s interests.”
When you succeed to constitute the important formation, ‘KPMG Africa’, Africa will inherit an eminent corporate citizen, part of the transformative leadership that Agenda 2063 talks about.
I would seriously urge that this Continental Corporate Citizen, KPMG Africa, must integrate into its very being this understanding that however slow the progress in this regard, the Path to one Africa is informed fundamentally by commitment to the principles of Pan Africanism and the African Renaissance.
I am certain that accordingly, KPMG Africa will reflect seriously on this matter – what will it do as an esteemed Continental Corporate Citizen to honour this perspective which defines the Path to One Africa.
In this context I am certain that KPMG Africa would take seriously the comment made by Prof Wiseman Nkuhlu in his Memoir, ‘Enabler or Victim? KPMG SA and STATE CAPTURE’ when he says:
“My view is that multinational corporations play a vital role in a country’s economy and society. They have the power to be a force for good by creating opportunities for locals and stimulating the economy. They ought to operate for the mutual benefit of shareholders, employees and society at large…They should meet our expectations, of course, by ensuring that they respect our laws and uphold international standards of conduct.”
Even as it attended to the historic Pan African task of the eradication of colonialism and apartheid, our Continent did not forget to answer the question – what kind of post-colonial Africa do we want?
In this regard, Africa’s liberators understood very well that one of their new and key strategic tasks was to liberate the people from poverty and underdevelopment.
Accordingly, the OAU Charter signed on the 25th day of May in 1963, the founding day of the Organisation of African Unity said that the Founders of the OAU were:
“Conscious of our responsibility to harness the natural and human resources of our continent for the total advancement of our peoples in all spheres of human endeavour.”
This was followed by a seeming plethora of economic statements or Programmes to give expression to this responsibility.
I am talking here about, for instance, the 1973 African Declaration of Co-operation, Development and Economic Independence, the 1976 economic recommendations of the Council of Ministers, the 1979 Monrovia Declaration on Guidelines and Measures for National and Collective Self-Reliance in Social and Economic Development for the Establishment of a New International Economic Order, the 1980 Lagos Plan of Action for the Economic development of Africa 1980-2000, the 1991 Treaty Establishing the African Economic Community, the 2001 New Partnership for Africa’s Development, NEPAD, and the current 2015 Agenda 2063: The Africa we Want.
Some may respond to this cascade of economic proposals and programmes that Africa is very good on the promise, but very poor on practically honouring that promise.
However, I would put this somewhat differently and say that whatever might have been the day-to-day preoccupations of the African political leadership, the pressing matter of the socio-economic challenges facing the African masses has always refused to disappear, leading to the regular appearance of new economic programmes.
There is no need for us on this occasion to discuss the various African economic programmes I have mentioned. However, I will make some comments about the current African Development Programme, Agenda 2063.
This is how the Programme describes itself:
“In this new and noble initiative, past plans and commitments have been reviewed, and we pledge to take into account lessons from them as we implement Agenda 2063. These include: mobilization of the people and their ownership of continental programmes at the core; the principle of self-reliance and Africa financing its own development; the importance of capable, inclusive and accountable states and institutions at all levels and in all spheres; the critical role of Regional Economic Communities as building blocks for continental unity; taking into account of the special challenges faced by both island and land-locked states; and holding ourselves and our governments and institutions accountable for results.”
To implement Agenda 23 effectively requires that it should be broken up into 10-year segments.
Last year, 2022, the African Union published the Report about how Agenda 2063 had performed during its first decade.
Here I must explain that Agenda 2063 has set itself:
7 Aspirations; and, 15 Flagship Projects.
Accordingly, the Report I have mentioned deals individually with these Aspirations and Flagship Projects.
I will not cover all these but only a few to give our Conference a sense of what Africa is doing actually to implement the socio-economic programme it had set for itself.
The 2063 Aspiration 1 is “A prosperous Africa based on inclusive growth and sustainable development.” The Report says that Africa has achieved low progress with regard to this Aspiration with an overall score of 37% against the 2021 targets. It says that one reason for this low score is mainly that there has been a decrease in GDP per capita from USD3,170 in 2019 to USD2,910 in 2021.
Aspiration 2 is “An integrated continent politically united and based on the ideal of Pan-Africanism and the Vision for Africa’s Renaissance”. The Report says there has been strong performance of 84% of this Aspiration essentially because of progress with the African Continental Free Trade Agreement (AfCFTA) which came into effect on 1 January 2021. It also mentions improvements in road networks, air transport, electrification and ICT.
Aspiration 6 is “An Africa whose development is people-driven, relying on the potential of the African People, particularly its Women and Youth and caring for children”. The Report says Africa made significant progress in terms of this aspiration, realising a score of 67%.
Without dealing will all the aspirations, let me say that the Report states that at the ‘aspirational level, Africa recorded a positive upward trend in respect of all seven aspirations vis-à-vis the 2021 targets.’
ASPIRATION 1. A prosperous Africa based on inclusive growth and sustainable development
ASPIRATION 2. An integrated continent, politically united, based on the ideals of Pan-Africanism and the vision of Africa’s Renaissance
ASPIRATION 3. An Africa of good governance, democracy, respect for human rights, justice and the rule of law
ASPIRATION 4. A peaceful and secure Africa
ASPIRATION 5: An Africa with a strong cultural identity, common heritage, values and ethics
ASPIRATION 6: An Africa whose development is people-driven, relying on the potential of African people, especially its women and youth, and caring for children
ASPIRATION 7: Africa as a strong, united, resilient and influential global player and partner
To save time, I will not discuss any of the Flagship Projects. However, here is what the AU Report says:
“The Continent made notable progress in the implementation of the 15 African Union Flagship Projects. Noteworthy was the progress made on operationalising the African Continental Free Trade Area. The Continent also registered progress in the implementation of other flagship projects, albeit at varied levels…
“Overall, Africa has continued to demonstrate an unwavering resolve towards achieving the vision of Agenda 2063, even in the face of challenging realities in the socio- economic ecosystem.”
Flagship Projects of Agenda 2063
- Integrated High Speed Train Network
- Formulation of an African Commodities Strategy
- Establishment of The African Continental Free Trade Area (Afcfta)
- The African Passport And Free Movement of People
- Silencing The Guns By 2020
- Implementation of The Grand Inga Dam Project
- Establishment of A Single African Air-Transport Market (Saatm)
- Establishment of An Annual African Economic Forum
- Establishment of The African Financial Institutions
- The Pan-African E-Network
- Africa Outer Space Strategy
- An African Virtual And E-University
- Cyber Security
- Great African Museum
- Encyclopaedia Africana
I have spoken about the Report on the first decade of Agenda 2063 to say that it seems that the African States are implementing the programme they set themselves.
Secondly, I would like to point out that the Report does not contain a comprehensive statement about the state of the African economy in 2022. This makes it impossible to locate such progress as is being made with regard to the Agenda 2063 Aspirations and Flagship Projects within the context of the African economy as a whole.
In this regard, here are some comments in the 2022 AfDB African Economic Outlook:
“The continent risks sliding into stagflation – a combination of slow growth and high inflation. Real GDP is projected to grow by 4.1 percent in 2022, markedly lower than the near 7 percent in 2021. The deceleration in growth highlights the severity of the impact of the Russia–Ukraine conflict on Africa’s economy… Despite a rebound in growth, the impacts of the COVID-19 pandemic on lives and livelihoods in Africa continued in 2021. The Bank estimates that about 30 million Africans were pushed into extreme poverty in 2021 and that about 22 million jobs were lost in African countries the same year due to the pandemic. These outcomes are likely to continue in 2022 and 2023.”
For its part, the World Bank has said, among other things:
“The (Sub-Sahara) region faces several development challenges. According to the region’s most recent economic update, growth in Sub-Saharan Africa is projected to slow to 2.5% in 2023, from 3.6% in 2022. Rising conflict and violence across the region exerts a dampening effect on economic activity, with climate shocks poised to exacerbate this fragility. About 462 million people in the region are still living in extreme poverty in 2023. The recent poly-crisis – climate-related issues, the COVID-19 pandemic, and mounting conflicts – has expedited the debt surge. The region continues to grapple with high debt distress risks, with 21 countries identified as either at high risk of external debt distress or already ensnared in it as of June 2023.”
It is obvious that I would once again humbly advise KPMG Africa closely to follow up on what Africa is doing with regard to Agenda 2063, while acting independently to understand African economic reality.
Thus would KPMG Africa position itself the better to contribute to the further advance of Agenda 2063.
In this regard, before I sit down, let me mention three things briefly.
One of these is that we must be realistic about our expectations concerning the AfCFTA.
For instance, according to the Secretary General of the AfCFTA, as recently as six months ago, in May, African Ministers were still meeting to negotiate such important matters as the ‘Outstanding Rules of Origin on the Automotive and Textiles Sectors, allocations of the adjustment facility according to countries’ estimated tariff revenue losses; strategies for the frontloading liberalisation of trade in basic agricultural products in order to cope with food insecurity on our continent; updates on the Guided Trade Initiative and on Customs, trade facilitation and transit in the AfCFTA.’
We must also understand that our countries must make the necessary investments in order to diversify their economies and therefore increase the numbers and volumes of goods and services they can trade among themselves.
An interesting example relevant to this is what has happened as the US has opened its huge market to our countries through AGOA. In 2021 only five (5) of the 39 AGOA beneficiary countries accounted for 82% of the AGOA imports, excluding crude oil.
[South Africa, Kenya, Lesotho, Madagascar and Ethiopia. Main sectors, energy, apparel and transportation equipment.]
This obviously suggests that the overwhelming majority of the African countries have not been able to diversify their economies so as to produce goods and services to export to the US market.
We must bear this in mind as we consider the impact of the AfCFTA.
The second matter relates to one of the goals of Agenda 2063 concerning domestic resource mobilisation to address the Agenda 2063 and Agenda 2030 SDG Goals.
A report on Illicit Financial Flows we submitted to the AU Assembly in 2015 said that Africa is losing billions of development dollars annually due to these Illicit Financial Outflows, making this a major loss in terms of domestic resource mobilisation.
We continue to work with the individual Member States of the AU to stop these illicit financial outflows the bulk of which originate from commercial entities.
Of great importance is that currently there is a Draft Resolution before the UN General Assembly proposing that the UN should institute processes to establish a legally binding International Tax Convention/Framework which would make it possible to deal with the illicit financial outflows even in the current Tax Havens where many of these outflows end up.
Some UN Member States are suggesting, strongly, that this International Tax Framework should be elaborated by the OECD, continuing work it is already doing.
However, Africa and the countries of the South are very clear that this should be done by the UN by virtue of its global inclusivity, contrary to the fact that the OECD is made up of 38 Member States, the majority of which are the developed countries of the North.
The matter of ending the Illicit Financial Flows out of Africa is of major concern to our Continent.
I sincerely hope that KPMG Africa will pay close attention to this issue, including determining what it can do to help end these Outflows and therefore contribute to the availability of larger resources to defeat poverty and underdevelopment in Africa.
The last of the three matters I said I wanted to raise is the so-called youth bulge.
The UN says that whereas the African youth constituted 23% of the world youth in 2023, they would account for 35% of the world youth in 2050.
In this regard recently The New York Times published the first of a two-part article by Declan Walsh, entitled ‘The World Is Becoming More African’.
Among others the article says:
“More than a third of the world’s young people will live in Africa by 2050… The implications of this “youthquake,” as some call it, are immense yet uncertain, and likely to vary greatly across Africa… Africa’s challenge is to manage unbridled growth. It has always been a young continent – only two decades ago the median age was 17 – but never on such a scale. Within the next decade, Africa will have the world’s largest work force, surpassing China and India. By the 2040s, it will account for two out of every five children born on the planet… But while a handful of African countries are poised to ride the demographic wave, others risk being swamped by it.”
What The New York Times is correct. The objective of youth development has been on the Pan African agenda for many years, including as argued specifically in the AU Youth Charter.
Once again my plea is that KPMG Africa as an eminent African corporate citizen should pay attention to this important matter of the youth bulge to see in what ways it can contribute to the efforts to address it.
To conclude, let me say that I imagine that many on our Continent will be happy to welcome KPMG Africa as a new corporate citizen, convinced that this will help to improve the accounting services on our Continent as well as add yet another activist on the Path to One Africa.
Thank you for your attention.