Bright Simons, Vice President of Ghana’s IMANI Center for Policy and Education, has criticized African governments for perpetuating a “paradox of essentialism” in domestic revenue strategies, arguing that systemic underinvestment in innovation, entrepreneurship, and regional collaboration undermines long-term fiscal resilience.
Speaking at the IMF-World Bank Spring Meetings in Washington D.C., Simons warned that Africa’s narrow focus on immediate, tangible projects over strategic initiatives risks entrenching aid dependency and stifling economic transformation.
“When African leaders must choose between funding schools or continental institutions like the African Union, the AU is dismissed as non-essential,” Simons said during a panel titled Safeguarding Domestic Resources in the Post-Global Aid World. He noted that over 70% of the AU’s budget relies on European donors, weakening Africa’s bargaining power in global trade and digital governance. “Without a well-financed AU, how do we negotiate deals that favor the continent?”
Simons highlighted a Ghanaian entrepreneur pioneering electric tricycles and bicycles tailored for urban African markets as emblematic of missed opportunities. Despite the potential to address mobility and environmental challenges, her venture lacks policy support, overshadowed by automotive policies favoring multinational automakers. “We prioritize assembly plants over homegrown green innovation,” he said, stressing that such gaps reflect a broader neglect of “soft infrastructure” like education quality and tech ecosystems.
African governments’ emphasis on “hard infrastructure” schools, clinics, roads often sidelines investments in human capital and institutional capacity, Simons argued. This approach, he contends, restricts tax base expansion and perpetuates reliance on volatile commodity exports and foreign aid. Ghana, for instance, has struggled to lift its tax-to-GDP ratio beyond 13%, well below the African average of 16%, despite recent digital tax reforms.
The critique comes as 23 African nations negotiate debt restructuring amid rising borrowing costs and climate pressures. Simons linked fiscal fragility to underfunded regional bodies and innovation pipelines. “How can we attract investment in AI or clean energy without credible institutions or skilled workforces?” he asked, pointing to Ethiopia and Rwanda as exceptions leveraging strategic tech partnerships.
Simons urged policymakers to redefine “essential” spending to include innovation hubs, regional trade frameworks, and digital public goods. He cited Africa’s inability to leverage its vast natural resources for value-added industries such as mining lithium for EV batteries domestically as a failure of strategic vision. “The same logic that dismisses the AU as a luxury also sidelines critical R&D,” he said.
Panelists echoed concerns over Africa’s $70 billion annual infrastructure financing gap, exacerbated by currency risks and bureaucratic delays. The African Development Bank estimates that systemic inefficiencies cost the continent up to $148 billion yearly, overshadowing donor aid inflows.
While Simons’ critique underscores entrenched challenges, examples of progress exist. The African Continental Free Trade Area (AfCFTA), operational since 2021, aims to boost intra-African trade through harmonized tariffs and digital payment systems. Meanwhile, Kenya’s startup act and Nigeria’s tech levies illustrate attempts to formalize digital economies.
For Simons, breaking the “essentialism” cycle requires political courage to reallocate resources toward institutions and innovation. “Africa’s fiscal future hinges not just on roads but on reinventing how we cultivate talent and negotiate globally,” he said. As debt distress spreads, the cost of inaction both economic and geopolitical continues to rise.
