The Minister for Finance, National Planning and Trade, Naadir Hassan, yesterday afternoon officially opened the 26th joint meeting of the Intergovernmental Committee of Senior Officials and Experts (ICSOE) of the United Nations Economic Commission for Africa (Uneca) Sub-Regional Offices for Eastern and Central Africa, of which we are also a member.
The three-day meeting being held under the theme ‘Pursuing resilience, economic growth and diversification in the context of instability and shocks: Role of Special Economic Zones, Innovative Finance and African Continental Free Trade Area (AfCFTA)’, is taking place at the Savoy Resort & Spa, Beau Vallon.
The aim of the Uneca meetings, the first ever to be held between senior officials and experts, including ministers from Eastern and Central African member states, are to discuss emerging issues and challenges of the moment, such as Covid-19 and the Russian war on Ukraine which have impacted on the two region’s economic growth, including that of the economic growth of the whole African continent.
It will also discuss and share best practices for opportunities and solutions to improve policies and strategies for development of prosperity and well-being of African countries. This will be through exploring the role of special economic zones, innovative financing, tourism and AfCFTA to mitigate instability and impacts of global economic shocks.
Addressing the delegates, Minister Hassan stated that despite countries having different geographical and economic characteristics, they all have been adversely affected in one way or another by the shock of Covid-19 pandemic and the war in Ukraine.
“Our continent is facing multiple crises – food and energy insecurity and increased governmental fiscal pressure as a result of this conflict,” said Minister Hassan, who noted that these shocks have deepened national debt vulnerabilities and reversed several years of progress achieved towards a stable macroeconomic environment including exacerbating inequalities, poverty and violence in some countries.
Minister Hassan said that as a small service economy, we also have been hit hard by the shocks of which travel restrictions and global economic downturn triggered unprecedented economic contraction of 13.5, our public debt ratio increased sharply, reflecting the primary balance deterioration, exchange rate depreciation, and GDP contraction.
He added that the year 2020 saw the most sizeable reduction ever recorded in tourist arrivals for Seychelles (-70 per cent).
“It is evident now more than ever that there is a great need to amplify efforts to collectively identify solutions for the common challenges to our respective regions’ growth and prosperity. We are fortunate to have existing relationships through existing organisations that we can leverage on to pursue and address this need on a continental level,” Minister Hassan said.
Minister Hassan noted that as a small island state we have over the years demonstrated our commitment to the safeguarding of stability in the Eastern African region and we will continue to work closely with our international partners and friends from the other member states with the common goal of strengthening regional economic activity.
“I am positive that this forum will allow us to discuss the effectiveness of the different measures undertaken by our governments, and even draw best practices and recommendations that could be adapted to country context,” added the minister.
He called on the participants to come up with evidence-based solutions and policy recommendations that would help the region to build back better and stronger.
In her welcoming remarks, the principal secretary for National Planning, Elizabeth Agathine, thanked the participants for finding time to participate in the very important meeting, the Uneca for convening them and the government of the Republic of Seychelles for welcoming and hosting the meeting.
“Discussions on how we can strengthen resilience, while at the same time exploring roles that can be played by the special economic zones, innovative financing and tourism, is timely. It is important to harness regional integration to stimulate economic recovery, build resilience and attract investment, particularly for job creation in our region,” said PS Agathine, who is the outgoing 1st vice-chair Eastern African Bureau.
The director for Uneca sub-regional office for Eastern Africa, Mama Keita, who conveyed the welcoming remarks of Uneca’s executive secretary, Antonio Pedro, who could not make it to the meeting, later said that these meetings help to improve policy making which enable countries relying on few bread winning economies to diversify their economies to withstand global and internal shocks.
She noted that the potential is there for economies in the sub-regions and Africa as a whole, in term of AFCFTA, to grow in addition to countries to also improve their own business environment in a bid to attract foreign investors and to encourage local investments including increase in production capacity for trade and investment in youth capacity among other well calculated attributes to ensure Africa’s bright future.
Speaking on emerging issues, Mrs Keita said that the cost of living due to Covid-19, the war in Ukraine and climate change are some of the main challenges affecting the sub regions which have created inflations thus destroying the buying power of the Africa population and increase in debts.
At the start of the meeting yesterday morning, delegates shared experiences and challenges faced by the Covid-19 pandemic and after lunch the discussion was on innovative financing, in Eastern Africa with regards to Fintech, Crypto currency and Islamic finance.
The meeting continues this morning on the state of play for the effective implementation of the AFCFTA among other topics for discussion.
Source: Seychelles Nation