Professor of Finance and Economics at the University of Ghana, Professor Godfred A. Bokpin, has called for a fundamental transformation of Africa’s economic model, urging countries on the continent to move beyond the export of raw materials and focus on value addition, innovation, food production and competitive economic systems.
Prof. Bokpin made the call when he addressed participants at the Students & Young Professionals African Liberty Academy (SYPALA), where he challenged young Africans to rethink the continent’s approach to economic development.
According to him, Africa’s continued dependence on the export of primary commodities such as cocoa, gold and other natural resources has prevented the continent from capturing a significant share of the wealth generated along global value chains.
He explained that countries could only earn higher returns when they added value to their raw materials before exporting them.
“If you export raw gold, there is a limit to how much profit you can make. But if you add value, it is in the process of value addition that you can charge margins,” he said.
Prof. Bokpin noted that although Ghana was recognised as a major cocoa producer, the country captured only a small portion of the value generated by the global cocoa industry. He said the situation demonstrated the urgent need for Ghana and other African countries to invest in processing and manufacturing.
He argued that value addition would not only increase export earnings but also create jobs and stimulate economic activity across different sectors.
Innovation over natural resources
Prof. Bokpin further urged African countries to gradually move from growth models that depend heavily on natural resources and the environment to economies driven by ideas, innovation and technology.
He warned that the environmental cost of Africa’s current growth model was significant but often not reflected in national economic statistics.
He said countries that were not richly endowed with natural resources had, in some cases, developed innovative ways of overcoming their limitations and building competitive economies.
“Comparative advantage may be an endowment, but competitive advantage is created,” he said, stressing that Africa must develop the capacity to create its own competitive advantages rather than depend solely on what nature has provided.
Food insecurity remains a concern
The economist also raised concerns about Africa’s food insecurity and heavy dependence on imported food.
He said Africa spends between 42 and 44 per cent of disposable income on food, compared with much lower proportions in advanced and emerging economies.
According to him, high food expenditure leaves households with little money to save, making it difficult for them to accumulate capital and take advantage of economic opportunities.
Prof. Bokpin therefore called for increased domestic food production to make food more affordable and create fiscal space for households to save and invest.
He cited Ghana’s importation of tomatoes from Burkina Faso as an example of what he described as a failure to take advantage of Africa’s agricultural potential.
Growth must create jobs
Prof. Bokpin also questioned the ability of Africa’s current economic model to create sufficient employment for its growing population.
He noted that despite economic growth, job creation remained inadequate, leaving many young people without meaningful employment opportunities.
He said Ghana had experienced significant growth in its economy without generating enough jobs to absorb the growing number of people entering the labour market.
He consequently called for a deliberate shift towards an economic model that links growth directly to productive employment.
Politics and public-sector recruitment
The professor also criticised the politicisation of employment opportunities, particularly in the public sector and state-owned institutions.
He argued that recruitment should be competitive and transparent, stressing that the best people must be given the opportunity to work in sensitive public institutions.
According to him, political patronage discourages young people from working hard because they may conclude that academic excellence and competence are less important than political connections.
He said an inefficient public sector ultimately imposes additional costs on the private sector and weakens the overall economy.
Africa can finance its own development
Prof. Bokpin also argued that Africa had sufficient wealth to finance its own development if the continent could establish safe, predictable and trustworthy financial systems.
He observed that a significant proportion of African wealth is held outside the continent because wealthy Africans often lack confidence in local financial and economic systems.
He said African countries must create conditions that encourage citizens to keep their wealth at home and invest it locally.
According to him, stronger institutions, predictable policies, transparency and confidence in the financial system would help reverse capital flight and provide more resources for domestic investment.
Prof. Bokpin urged young Africans to focus on ideas and the common good rather than political affiliations.
“Our allegiance should be to idea generation. Our allegiance should be to the common good,” he said, stressing that Africa’s development would require a new generation committed to innovation, competence and long-term economic transformation.
Ghana|Atinkaonline.com|Ebenezer Madugu