Feature/OPED
Geopolitical Changes, African Union Reforms and Election of Next AU Commission’s Chairperson
By Professor Maurice Okoli
The African Union, a continental organisation, is heading for a new traditional face within the framework of its guiding principles. That new forthcoming era would open a new chapter and, to a large degree, determine the future of Africa, especially taking cognizance of the current global changes. In less than a year since the expiration of the African Union Chairperson’s position, an advanced search for the next candidate has begun. As stipulated by the organization’s constitution, the candidate for the powerful position is normally elected. It is tentatively planned to choose the fifth Chairperson to succeed incumbent Chairperson Moussa Faki, whose second term of office ends in February 2025.
The majority of African leaders have spoken of unprecedented reforms, carrying out a significant internal shake-up, and new blood to be pumped into the current African Union leadership and its related allied institutions. Arguments for several changes are necessary to make the continental organisation work more effectively and produce tangible results, especially now within the context of global reconfiguration. Africa is too diverse to fit together. But there are many more interests in uniting the continent. But the political, economic, and cultural diversities have to be transformed into continental strength to ensure development and growth, instead of a noticeable display of weaknesses and passive actions. It is often repeatedly claimed that the African Union needs urgent realistic reforms and some kind of rebranding of its structure as an effective instrument for rapid development, new economic architecture, and substantial growth.
In late January, Rwandan President Paul Kagamé was appointed to lead the AU institutional reform process. It was an important step towards implementing its institutional reforms, setting the Pan-African organisation’s objectives under the leadership of the Heads of State, who meet once a year at the Assembly. As Africa faces a multitude of crises, unstoppable debates have also dominated inside Africa and on international platforms over the performance of the 55-member organisation, its existing challenges, and the way forward in the fast-changing world.
A media report released on March 3, 2024, titled “Museveni Endorses Raila Odinga’s AU Chairperson Bid” and circulated in the East African region showed the publicity campaign and erratic steps taken to promote Kenyan Raila Odinga to take over as Chairman of the AU Commission. Interestingly, Raila Odinga, Kenya’s opposition leader, has readily accepted Ugandan President Yoweri Museveni’s endorsement of his candidature for African Union Commission chairperson.
In a flagship statement posted via his social media platforms, Odinga said Museveni endorsed him during a joint meeting with President William Ruto. The Azimio alliance’s leader stated that the joint meeting with President Museveni and President Ruto was organized at the Ugandan president’s invitation.
“I accepted an invitation from President Yoweri Kaguta Museveni of Uganda for a joint meeting with President William Samoei Ruto. President Museveni strongly endorsed my candidature for Chairperson of the African Union Commission,” said Odinga, showing appreciation for William Ruto for fully supporting his candidature.
The trio also discussed the AU platform for deepening regional integration within the East African Community. Apart from Presidents Ruto and Museveni, other state heads who threw their invaluable weight behind the former Prime Minister are Samia Suluhu (Tanzania), Cyril Ramaphosa (South Africa), Salva Kiir (South Sudan), and Felix Tshisekedi of the Democratic Republic of the Congo. In addition, former Nigerian President Olusegun Obasanjo also endorsed Odinga, saying he is the best candidate to replace the outgoing chair, Moussa Faki.
Raila Odinga has an unmistakable political influence. He was born into a modest political family and grew up in politics. His profound perspectives suggest he operates as a pivotal figure within power dynamics, and his decision-making capacity is perceived as absolutely pragmatic. Odinga, most observers say, possesses an assertive leadership style and always expresses a steadfast interest in the complexity of a development-oriented society. These leadership skills echo his deep-seated affection for a genuine communal, regional, and continental tradition. Odinga as a suitable candidate underscores the perfect choice to embrace and settle for the best administrator for Africa.
Nevertheless, an insight into the choice and nomination of possible candidates is fraught with intrigue and nepotism. But at a glance, Odinga envisions carving out a new, distinctive image for the African Union. His high-value knowledge and experiences, corporate business entrepreneurialism, and pragmatic new economic development thinking would probably save Africa. Narratives too indicated that Odinga would adopt a far-reaching overhauled approach and take unshakable measures towards the most significant issues across Africa. These are essential conditions for re-imaging the AU’s future.
As the history of the stipulated procedures indicates, the elected chairperson becomes the head of the African Union Commission. For instance, on January 30, 2017, after seven rounds of voting, Chad’s Moussa Faki Mahamat was elected chairperson over Nigeria’s Amina Mohamed. He was re-elected in 2021 for another four-year term, which ends in 2025. Moussa Faki Mahamat, born on June 21, 1960, was first elected as the African Union Commission (AUC) Chairperson on January 30, 2017, and assumed office in March 2017. He served previously as State Minister of Foreign Affairs for the Republic of Chad.
According to official documents researched, the Chairperson of the AUC is the Chief Executive Officer, the legal representative of the AU, and the Commission’s Chief Accounting Officer. The Chairperson of the Commission is elected by the Assembly for a four-year term, renewable once.
In broad terms, the Chairperson’s functions include overall responsibility for the Commission’s administration and finances; promoting and popularising the AU’s objectives and enhancing its performance; consulting and coordinating with key stakeholders like member states, development partners, and Regional Economic Communities (RECs); appointing and managing the Commission’s staff; and acting as a depository for all AU and OAU treaties and legal instruments.
The African Union (AU) under Moussa Faki Mahamat has made several achievements, including raising the continental external relations profile and its ascension into the Group of Twenty (G20). In September 2023, when Prime Minister Narendra Modi of India chaired the G20 summit, the G20 nations agreed to grant the African Union permanent membership status in an appreciable move aimed at offering the continent a stronger voice on important questions and to uplift its status on a higher stage. In its final declaration in New Delhi, the G20 granted the African Union full membership. The G20 consists of 19 countries and the European Union, making up about 85 percent of the global GDP and two-thirds of the world’s population.
New Delhi is also counting on earning high-profile PR points to burnish its reputation as a Global South leader. In an article published in Indian and foreign newspapers ahead of the summit, Modi wrote, “Our presidency has not only seen the largest-ever participation from African countries but has also pushed for the inclusion of the African Union as a permanent member of the G20.”
Under Moussa Mahamat’s African Continental Free Trade Area (AfCFTA), the single continental market has the potential to unite an estimated 1.4 billion people in a $2.5 trillion economic bloc. The AfCFTA opens up tremendous opportunities for both local African and foreign investors from around the world.
January 1, 2021, signaled the commencement of Africa’s journey to market integration after it was postponed by six months in 2020 following the outbreak of the coronavirus pandemic. But its huge potential, which cannot be underestimated, is to generate a range of benefits through supporting trade creation, structural transformation, productive employment, and poverty reduction.
It aims at making Africa the largest common market in the world and accelerating continental integration. It is expected to reinforce the measures taken in terms of the free movement of persons, goods, and services across borders. But much depends on the collective determination and solidarity demonstrated by African leaders to face the challenges in a united and resolute manner. It depends on the strong mobilization of African leaders and the effective coordination provided by the African Union.
For this to be successful, Africa has to engage in modernising agriculture and strengthening agro-food systems by working towards its food security rather than simply accepting food packages as ‘gifts’ from so-called external friends. The next stage is to industrialise, add value to the agricultural products by processing them, and finally distribute them locally and for exports, hence the establishment of the AfCFTA. From this concrete perspective will emerge a new Africa, “the Africa we want,” which has understandably become the resounding guiding slogan.
Despite that, there have also been several critical assessments and careful analyses of developments over the past few years. The AU has made scathing remarks on the negative impacts inflicted by imperialism, neocolonialism, and Western hegemony. And further consistently called for calling for a complete overhaul of the multinational financial system to enable the pursuit of needed development goals across Africa. Paradoxically, Africa has huge resources, both natural and human, but the larger size of its population still lives in abject poverty and desperation.
At least a majority of African leaders on their side recognised the need to reform the continental organisation too. It has allegedly been manipulated by external powers, and to a large extent, internal deficiencies and weaknesses are still persistent on the continent. These include the absence of the fundamentals of democracy, good governance, transparency, and accountability, primarily due to weak institutions and ineffective organs of the state, especially the parliaments. Opposition groups are stifled, putting democracy at risk across Africa.
Rising ethnic conflicts, political-economic instability, and military appearance in politics. These have sparked widespread mass protests. Burkina Faso, Chad, Guinea, Gabon, Mali, and Niger are run by military officers. Then there was instability in Libya, Somalia, Sudan, and the Democratic Republic of the Congo (DRC). The biggest vulnerabilities include the proliferation of weapons, weak border control, and unprotected industrial facilities. The inevitable impact on the achievement of Sustainable Development Goals.
Researchers say the African Union should dedicate this year to solving the various issues of instability and restoring credibility in the democratic process. Non-constitutional changes of government have multiplied in total defiance of the entire political and legal system on which the organization was founded. Never since the creation of the African Union has there been such a large number of transitions following unconstitutional changes of government in Africa. (See African Leaders Extraordinary Summit report, February 2024.)
Set up more than two decades ago, the 55-member bloc has long been criticized for being ineffectual and for taking little decisive action in the face of numerous power grabs. Some 19 presidential or general elections are scheduled on the continent in 2024, portending more challenges for the AU.
Seemingly, there is a necessity to navigate a new dynamic development paradigm within the context of multipolar relations. The multifaceted nature of obstacles has to be addressed with a spirit of vigour and valuable perspectives. There are three main directions: democracy and good governance, food security and industrialization, and economy and trade. These could lead to social inclusion and broadening employment for the youth and the next generation. They could also lead to economic growth, stability, and better life conditions across Africa. All aspects of Africa’s development are incorporated into the joint report published at the African Economic Conference 2022.
In a nutshell, the African Union and African leaders have to realign their foreign policies and back away from geopolitical insinuations, rather than take advantage of the complexities and confrontations to look for substantive opportunities to support their efforts in pursuit of building better. The beauty of Africa lies not only in its economic potential but also in its vibrant and diverse cultures.
However, it would be remiss to discuss Africa’s economic growth without addressing the challenges that persist. Poverty, inequality, and a lack of infrastructure continue to hinder progress. It is our collective responsibility to work towards addressing these issues, ensuring that the benefits of Africa’s economic growth are inclusive and sustainable.
Notwithstanding the questions raised above, Moussa Faki Mahamat has spoken of “worrying trends” during these past few years at high-level conferences and meetings, characterising the main challenges “as political instability, climate change, poverty, deficits in economic governance, and marginalisation of women and young people in development and leadership.” Another major subject of discussion has been how the AU will transition to relying on African states to fund most of its budget rather than foreign donors. For instance, the UN Security Council in December adopted a resolution to finance AU-led peace missions but capped it at 75 percent of the budget.
The 37th AU Ordinary Session of the Assembly of Heads of State and Government, at the annual convention in February 2024, stressed the necessity for practical long-term strategies and to strengthen efforts at achieving peace and stability on the continent and to attain the 2030 Agenda for Sustainable Development and AU Agenda 2063. The AU Agenda 2063 is a comprehensive development framework for Africa.
The significant aspect of the retreat was the valuable discussions on the reform agenda. The reform agenda emphasises the need to focus on key priorities with a continental scope, realigning AU institutions to deliver on its objectives, operational efficiency, and sustainable self-financing of the Union. The retreat also reviewed the second ten-year plan of Agenda 2063, which spans from 2024 to 2033.
In the context of a multipolar geopolitical order, African leaders and the African Union should strengthen their positions regarding external partnerships. The African Union has to take up the task of developing collective approaches to the problems of maintaining peace and security, strengthening democratic processes, developing human potential, and ensuring socio-economic growth. If not, the continent risks being left behind and used as a pawn in an increasingly divided global order.
The African Union has, in a parallel direction, spearheaded Africa’s development and integration in close collaboration with African Union Member States, the Regional Economic Communities, and African citizens. The AU’s vision is to accelerate progress towards an integrated, prosperous, and inclusive Africa, at peace with itself, playing a dynamic role in the continental and global arenas, effectively driven by an accountable, efficient, and responsive Commission. These are incorporated into a single continental development program referred to as the AU Agenda 2063.
Professor Maurice Okoli is a fellow at the Institute for African Studies and the Institute of World Economy and International Relations, Russian Academy of Sciences. He is also a fellow at the North-Eastern Federal University of Russia. He is an expert at the Roscongress Foundation and the Valdai Discussion Club.
As an academic researcher and economist with a keen interest in current geopolitical changes and the emerging world order, Maurice Okoli frequently contributes articles for publication in reputable media portals on different aspects of the interconnection between developing and developed countries, particularly in Asia, Africa, and Europe. With comments and suggestions, he can be reached via email: markolconsult (at) gmail (dot) com.
Feature/OPED
The Future of Payments: Key Trends to Watch in 2025
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
Feature/OPED
Ghana’s Democratic Triumph: A Call to Action for Nigeria’s 2027 Elections
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
Feature/OPED
The Need to Promote Equality, Equity and Fairness in Nigeria’s Proposed Tax Reforms
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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