2063Now

October 2025

Economic growth objectives must not make African states forget their prerogatives as guarantors of the general interest and social justice.

Amilcar Cabral (emblematic figure of pan-Africanism and architect of the independence of Cape Verde and Guinea-Bissau) reminded us that people do not fight for ideals, but for practical causes such as peace, better living conditions and the future of their children. In his constant search for the "real" throughout his revolutionary and pan-African commitment, Cabral understood that ideals remain meaningless if they are not accompanied by a real improvement in people's living conditions [1].

While it is imperative for African governments to create sustainable economic value, as reflected in annual growth in gross domestic product (GDP), this is not an end in itself. It does not exempt states from their fundamental responsibilities: guaranteeing the general interest, cohesion and social justice.

And yet, for many political and economic players (including international financial institutions, rating agencies and investors), GDP growth remains the benchmark indicator for assessing a country's economic vitality and health, on a par with the debt/GDP ratio.

However, economic growth is futile unless it is accompanied by opportunities for companies (markets, local processing, moving up the value chain), local populations (jobs, training), and greater tax revenues for the state. Worse still, it can lead to increased inequality, foreshadowing social and political tensions. For this reason, economic growth must be accompanied by a clear improvement in the living conditions of populations, particularly the most vulnerable, through targeted and effective social programs, such as targeted cash transfers, disability benefits, pensions, economic and social inclusion, active labor market programs or unemployment benefits.

Over the past thirty years, some countries have succeeded in harnessing their economic growth to ambitious social policies. According to the World Bank's Social Protection Report 2025, nearly 4.7 billion people benefit from programs worldwide, mainly in low- and middle-income countries. Despite improvements in coverage for the most vulnerable populations, nearly 1.6 billion people still have no access to social protection, and 400 million have insufficient access to programs to lift them out of poverty. In Africa, nearly 827 million people are not or insufficiently covered by existing protection mechanisms [2].

Key programs over the past 25 years in emerging countries

The most emblematic example is Brazil' s "Bolsa Família" program, which redefined social policies through a multidimensional approach that made a major contribution to poverty reduction in the early 2000s. Launched in 2003 by the Brazilian government, this scheme transformed public action by combining conditional cash transfers with health and education requirements. By 2006, over 11 million households had benefited from the program, representing almost 45 million people. According to the World Bank, the program was responsible for around 28% of Brazil's total poverty reduction between 2002 and 2012. In 2015, the proportion of the population living below the international poverty line fell from 13% to 3% thanks to the program [3].

Indonesia also illustrates the major role that social programs can play in reducing poverty. The "Keluarga Harapan" (PKH) program, launched in 2007, was the country's first conditional cash transfer scheme. Inspired by Latin American experiences, it mainly targets poor households, with obligations linked to children's schooling, prenatal visits and vaccinations. By 2016, more than 6 million households had benefited from this program, and its gradual extension has enabled nearly 10 million families to be covered by 2019, representing around 15% of the Indonesian population. According to the World Bank, PKH has made a significant contribution to reducing poverty and improving human capital indicators, particularly school attendance and access to maternal and child health services. Analyses attribute around 25% of the country's observed poverty reduction between 2007 and 2019 to the program, making the PKH a central pillar of Indonesian social policy and a landmark example of a conditional transfer scheme in Southeast Asia [4].

A few examples from Africa

While social programs have expanded in recent years in Africa (45 African countries have social protection programs, three times as many as at the end of the 1990s [5]), coverage rates, particularly for the most vulnerable populations, are still far from perfect. However, some programs stand out for their multidimensional and innovative approach, addressing poverty, climate and gender at the same time, following the example of programs implemented in recent years in Ethiopia, Benin and Togo [5].

To break with the cycles of drought and famine of the 1980-2000 decades and reduce its dependence on humanitarian aid,Ethiopia launched the Productive Safety Net Program (PSNP) in 2005. This government scheme, supported by international donors, combines cash transfers and public works to strengthen local infrastructure and climate resilience. Now one of the largest programs in Africa, the PSNP supported nearly 8 million beneficiaries in 2019, setting a benchmark for food security, community targeting, social inclusion and climate action [6].

As part of the implementation of its economic transformation roadmap (Government Action Plan - PAG 2021-2026), Benin has deployed the Assurance pour le Renforcement du Capital Humain (ARCH) and "Gbessoke" programs aimed at increasing capacity and access to basic social services and economic opportunities in a sustainable and equitable manner. These programs mainly target access to health services, vocational training, access to credit for players in the informal sector, and retirement pensions (for farmers, traders, transporters and craftsmen in the informal sector) [7].

Neighboring Togo demonstrated technological innovation during the COVID-19 pandemic by launching the "Novissi" program, in partnership with the World Bank and Agence Française de Développement. Novissi targets workers in the informal sector who have lost their jobs as a result of health measures. Through cash transfers via electronic wallets, the Togolese government has supported over 600,000 people registered on the telephone-accessible platform with payments of 12,500 CFA francs per month for women (⅔ of beneficiaries) and 10,000 CFA francs for men. This initiative demonstrated the relevance of e-government solutions for enhancing the efficiency of public action [8] [9].

Digitization is a unique opportunity for governments to implement targeted, tailored solutions in partnership with the private sector.

Against a backdrop of limited government budgetary resources, the digitization of social protection services offers governments the opportunity to implement better-targeted and more effective programs, such as the "Novissi" program.

Digital solutions enable better coverage of populations, particularly the most vulnerable and those far from the main urban centers. They also offer the possibility of integrating better monitoring of allocations and greater transparency in the management of public money.

Today, satellite images, power grid connection information, mobile data and money transfers are all valuable sources of information which, in the context of strategic partnerships with private operators (energy, telecommunications, money transfers), would enable governments to better identify the needs of vulnerable populations according to their income and economic activities. The co-construction of digital solutions, in particular through the creation of digital portfolios and multi-use digital social registers, is one of the most powerful levers available to African governments in the years to come, enabling them to actively combat poverty with limited but better-used resources.

The "Novissi" program in Togo has been particularly successful thanks to the cross-referencing of telephone subscription databases and the Togolese electoral roll. In recent years, Kenya ("Enhanced Single Registry") and Nigeria ("Nigeria Digital Identification for Development") have set up digital social registries and one-stop shops to centralize social benefits and boost the speed and efficiency of program deployment.

Nigerian unicorn Flutterwave, which specializes in online payment solutions, is working more actively with the Nigerian federal government to develop programs promoting financial inclusion for vulnerable populations and entrepreneurs, proof that tomorrow's solutions can capitalize on the overall vision of governments and the innovative capacity of the private sector.

Nothing will be possible or sustainable without an increase in tax resources

However, even the most committed political will to combat poverty cannot escape the imperative for African governments to mobilize domestic resources more effectively and consistently. Indeed, in its report "Government Revenue Statistics for Africa 2024" [10], the Organisation for Economic Co-operation and Development (OECD) points out that the average tax/GDP ratio (total tax revenues, including social security contributions, as a percentage of GDP) was 16.0%, below the levels for Asia and the Pacific (19.3%), Latin America and the Caribbean (21.5%) and OECD countries (34.0%). No large-scale social program can be financed over the long term without substantial and predictable tax and non-tax revenues.

To achieve this, it is up to public administrations to do better by focusing on three main areas: the legitimacy of the State in the eyes of the population as a tax collector, the fight against illicit financial flows [11] and the expansion of the tax base. The first two go hand in hand. Indeed, people who are able to pay taxes will have more incentive to do so if public administrations are transparent and efficient in their actions, and actively fight corruption. In 2024, according to the African Union, nearly 88 billion dollars escaped from African tax authorities [11].

It would also appear necessary to tax large national corporations as well as foreign multinationals, so that they pay their fair share of taxes, particularly in the extractive industries. Furthermore, in the interests of public health and environmental protection, new taxes could be introduced (on sugar, salt, chemical components, cosmetics, pollution, etc.) to ensure that products arriving on African markets comply with international health standards, particularly medicines and agri-food products. The aim is to ensure that African consumers do not suffer from the cost-optimization strategies implemented by certain companies, or from the negligence of the authorities on these issues.

Finally, in the medium/long term, the gradual formalization of the economy is a necessity to promote greater social and economic inclusion, and increase the share of tax revenues for governments. Vocational training programs, tax incentives and explanations of the usefulness of taxes are important to create pathways towards the formalization of micro and small businesses on the continent, responsible for nearly 80% of employment [12] and 40% of GDP in African countries [13].

Essential solutions to meet the dignity aspirations of Africa's youth

The growth of African countries must be placed at the service of inclusive development and shared prosperity, commensurate with the potential offered by the youth of their populations. However, a large proportion of these populations remain vulnerable and subject to significant territorial and gender disparities. Against a backdrop of increasing climatic and health crises, strengthening social protection systems is becoming a strategic imperative. These systems should not be copied from Western models, which are designed more to respond to demographic ageing, but rather should be seen as essential instruments of resilience, equity and dignity, enabling every African to realize his or her full potential in his or her own country, regardless of socio-economic conditions.

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Sources & References

[1] "Amilcar Cabral - Collection of texts introduced by Carlos Lopes" Centre Europe - Tiers Monde (CETIM), 2013 cit. page 15

[2] World Bank. 2025. State of Social Protection Report 2025: The 2-Billion-Person Challenge. Washington, DC: World Bank

[3] "Bolsa Familia in Brazil - Public Impact Fundamentals" Centre for Public Impact, 2019 & Global Alliance Against Hunger and Poverty

[4] "Program Keluarga Harapan - Main Findings from the Impact Evaluation of Indonesia's Pilot Household Conditional Cash Transfer Program", World Bank, 2011

[5] "Boosting opportunities for the most vulnerable: the Productive Social Safety Net toolbox for Africa" World Bank Blog Camilla HolmemoChristian BodewigRobert S. Chase Suleiman Namara November 02, 2023

[6] Kalle Hirvonen, Elia A. Machado, Andrew M. Simons, Vis Taraz," More than a safety net: Ethiopia's flagship public works program increases tree cover" Global Environmental Change,Volume 75,2022,102549, ISSN 0959-3780 ; (Beegle et al., 2018)

[7] Government of the Republic of Benin, ARCH & Gbessoke

[8] "Novissi: Preventing the social impacts of the COVID-19 pandemic in Togo" Groupe Agence Française de Développement, 2021

[9] Lawson, Cina, Morlé Koudeka, Ana Lucía Cárdenas Martínez, Luis Iñaki Alberro Encinas, and Tina George Karippacheril. "Novissi Togo: Harnessing Artificial Intelligence to Deliver Shock-Responsive Social Protection." ©World Bank Group, Washington, DC.

[10] OECD/CUA/ATAF (2024), Statistiques des recettes publiques en Afrique 2024 : La facilitation et la confiance comme moteurs de la conformité fiscale volontaire dans certaines administrations fiscales africaines, OECD Publishing, Paris, https://doi.org/10.1787/cd87af6f-fr.

[11] Illicit financial flows are defined here as tax evasion, money laundering, illegal capital transfers, corruption, transfer price manipulation and under-reported exports. Source "L'Afrique saignée à blanc par les flux financiers illicites" Le Point Afrique, Published September 7, 2025

[12] International Labour Organization

[13] "Pillar of Africa's Economy: A focus on the informal sector role" African Leadership Magazine, Joshua Muhammed, 2024