‘Misguided worship,’ Moghalu criticises Africa’s emphasis on GDP growth

Former presidential candidate and economist Kingsley Moghalu has sharply criticised Africa’s focus on Gross Domestic Product (GDP) growth, branding it as “misguided worship.”

In a statement released on Saturday via X, Moghalu argued that the direct funding of Small and Medium Enterprises (SMEs) and Micro, Small and Medium Enterprises (MSMEs) by the Central Bank of Nigeria (CBN) is not the optimal approach.

Instead, he advocates for channelling funds through microfinance banks.

Moghalu outlined a more nuanced strategy for African development, emphasising the need for a comprehensive approach that goes beyond mere GDP metrics.

He identified five key pillars essential for driving sustainable progress

According to him,  “The first business of African development is developing an endogenous mindset (worldview) of African development.

“Second: a strategy for overcoming poverty anchored on effective education and skills. Some are called to create wealth, others to create ideas and entertainment, others to lead, and yet others to serve. Some will be famous, others relatively unknown. But to be happy and content (while able to take care of oneself and family) is the greatest gift of all.

“Third: ensure the availability of electric power infrastructure.”

According to him, the fourth pillar involves channelling scientific inventions and innovations into the marketplace through mass production.

He said, “Fourth: channel scientific inventions and innovations into the marketplace through mass production.

“Fifth: ensure access to what I call ‘pipeline capital’ to the bottom of the pyramid – SMEs, MSMEs etc at affordable interest rates through microfinance banks (task for central banks, but not central banks themselves directly funding -no!).”