By zainab.joaque@awokonewspapersl.com
Freetown, SIERRA LEONE, July 4th, 2025 – In a powerful exchange of ideas at a recent fireside chat hosted by Gateway Partners, two of the world’s leading development thinkers—Professor Jeffrey Sachs and Dr. Kishore Mahbubani—delivered a bold and hopeful message for Africa’s future: Embrace smart debt, reform institutions, and believe in the continent’s potential.
Moderated by V. Shankar, Co-Founder and CEO of Gateway Partners, the conversation tackled some of Africa’s most pressing economic challenges, offering a roadmap toward prosperity in a shifting global landscape.
Professor Sachs, a renowned economist from Columbia University, didn’t mince words. “Africa needs more debt, not less,” he declared, pointing out that of the $30 trillion circulating annually in global capital markets, only a minuscule portion reaches Africa. He described this as a historic injustice that continues to stunt the continent’s growth.
Sachs proposed a sweeping development agenda: universal education completion, infrastructure investment amounting to 40% of GDP, and a bold “Made in Africa 2035” industrial strategy. He also slammed international credit rating agencies for applying rigid, outdated models that unfairly penalize African countries and private sectors—especially through the “sovereign ceiling” rule that depresses local credit ratings and discourages much-needed investment.
Dr. Mahbubani, Distinguished Fellow at the Asia Research Institute and a seasoned diplomat, brought insights from Asia’s economic transformation. He highlighted the cultural and institutional shifts that drove countries like Vietnam, Singapore, and Malaysia toward success.
“Africa must do what Asia did—start small, honour contracts, and work with discipline,” Mahbubani advised. He cited Vietnam’s early struggles with investor relations and the country’s eventual turnaround after embracing international best practices. In Malaysia’s case, he noted how copying Singapore’s investment brochures helped attract foreign capital—a simple but effective act of imitation.
But Mahbubani’s most compelling point was psychological. “Asia’s rise was not just economic—it was about confidence. Today, 4.5 billion Asians no longer see themselves as inferior to the West,” he said. He believes a similar shift in mindset is already underway in Africa, pointing to Nigeria’s recent achievement in building the world’s largest oil refinery as a symbol of African capability and ambition.
Both thinkers agreed on the importance of unifying Africa’s fragmented economies. Mahbubani likened Africa’s 55 separate markets to India’s pre-GST economy, where internal barriers choked efficiency. They praised the African Continental Free Trade Area (AfCFTA) as a game-changer—if fully implemented, it could lift millions out of poverty and significantly raise incomes across the continent.
Sachs and Mahbubani also highlighted the pivotal role of homegrown financial institutions such as the African Development Bank (AfDB), Afreximbank, and the Islamic Development Bank. Sachs called for these institutions to be granted preferred creditor status, which would give them more leverage and legitimacy in global finance.
Sachs also urged African governments to mobilize domestic resources—including the continent’s estimated $2 trillion in pension and sovereign wealth funds—and to form strategic alliances with global players like China’s Belt and Road Initiative, India, and the Gulf states.
In a world increasingly defined by geopolitical rivalries and economic fragmentation, Sachs warned that the global order is shifting, and Africa must act quickly to secure its place. He noted that technologies in education, healthcare, agriculture, and mining could revolutionize development across the continent—if there is the political will to harness them.
He held up Singapore as a shining example of what’s possible when a country invests in its people. “Singapore’s number-one-ranked education system didn’t just happen. It was deliberate,” Sachs said, urging African leaders to make similar investments in youth and human capital.
Mahbubani concluded with a reminder of history in the making. “The 21st century will not look like the 20th. This is Africa’s moment—if it has the confidence to seize it.”
This dynamic conversation was more than academic—it was a clarion call. For Africa to thrive, it must reimagine its institutions, integrate its markets, trust its people, and reframe the narrative around debt and development. With bold leadership and belief in its own potential, Africa can rise—not as a follower of global trends, but as a leader in the new world order. ZIJ/4/7/2025
