Dialogue on tackling inequality for sustainable growth and poverty reduction in Africa

A day before SALDRU’s South Africa at 30 Years of Democracy opened, a policy dialogue on the intricate relationship between inequality, poverty, and economic growth policies served as a prelude to the conference that followed. The dialogue was hosted by the Agence Française de Développement (AFD) and the African Centre of Excellence for Inequality Research. ACEIR – a centre of the African Research Universities Alliance – is housed at UCT and its hub and South Africa research node are both based at SALDRU. 

The dialogue on tackling inequality for sustainable growth and poverty reduction in Africa was framed by presentations on research that informed two recent publications: Inequalities in Sub-Saharan Africa: Multidimensional Perspectives and Future Challenges, which was co-authored by ACEIR and AFD researchers and published by the World Bank and AFD. The second is the World Bank’s Levelling the Playing Field: Addressing Structural Inequalities to Accelerate Poverty Reduction in Africa.

The presentations – by an economist at AFD, Rawane Yasser; and by Andrew Dabalen, World Bank Chief Economist for Africa – were followed by an interactive panel discussion facilitated by SALDRU’s deputy-director, Vimal Ranchhod, who also heads ACEIR’s South Africa node.  

On the panel were Mzwanele Griffiths Mfunwa, United Nations Economic Commission for Africa; the World Bank’s Andrew Dabalen; Anda David, head of the AFD’s research programmes on inequality, poverty and international migration; and David Francis, Southern Centre for Inequality Studies, University of the Witwatersrand. 

The dialogue cut to the core of one of Africa’s biggest challenges: while measures towards achieving more equal societies can reduce poverty and boost sustainable growth and prosperity, inequalities persist because of policy choices that are not inclusive but instead maintain the status quo to the benefit of elites and interest groups. Some key takeaways from the speakers include:

•    Policies for social and economic inclusion are crucial for social sustainability. As are adopting different models of economic growth, particularly in the Global North, and moving away from growth-centred approaches to ensure environmental sustainability: Rawane Yasser, AFD.
•    Government transfers have a limited impact on inequality and there is little fiscal space for redistribution because of the rising debt of African countries. Effective policies must go beyond redistribution by focusing on building human capabilities; reducing market distortions; and fostering inclusive and sustainable growth: Andrew Dabelen, World Bank.
•    Tackling the wealth divide requires not only a better understanding of how and why wealth is accumulated but also cognisance of the roles of elites, power, and the underlying politics that shape policy agendas that maintain the status quo: David Francis, Wits University.
•    The lack of political will and financial and capacity constraints are hampering the implementation of evidence-based recommendations at country levels. Collaborations and partnerships between development agencies, research institutions, and governments are needed to ensure research is translated into practical and implementable solutions that have a measurable impact on inequality and poverty: Mzwanele Griffiths Mfunwa, UNECA.
•    Politicians and other elites need to understand that maintaining the status quo of highly unequal societies are not in their best interest – in fact, inequality poses a systemic risk. At the same time, the tolerance of high inequalities in African countries by citizens need to be shifted by bottom-up demands for actions that result in more equitable and fair societies: Anda David, AFD.
•    Africa’s rapidly increasing population that is projected to double in one generation is expected to result in massive changes at economic, political, social, and cultural levels. This anticipated domestic transformation requires investment in people – in health, education, the energy and infrastructure that are needed to increase the productivity of the continent’s populations: Andrew Dabalen, World Bank.

For more insights into the speakers’ thought-provoking presentations and dialogue, find the recording of the dialogue on YouTube. 

Those who are curious to delve more into the topic of how less inequality can boost sustainable growth and reduce poverty in Africa can also listen to a new episode of AFD’s Grandes Lignes podcast where Rawane Yasser, Anda David, and SALDRU’s Murray Leibbrandt reflect on the complex web of inequalities that shapes income, education, healthcare, migration and climate resilience across Africa.