The investment is aimed at improving access to credit for low-income public sector workers who are usually excluded from formal banking systems.

The three southern African countries continue to face serious economic challenges, including limited job opportunities, inadequate healthcare and education systems, and growing pressure from climate-related shocks. With international aid becoming less predictable, many households have struggled to sustain livelihoods or fund small-scale ventures.

Swedfund’s new funding seeks to close this gap by enabling more civil servants to access personal and business loans that support daily living and small enterprise growth. According to the organisation, these loans are not just about access to money but about fostering resilience and stimulating community-level economic development.

“With this loan we increase the possibilities for low-income individuals to secure financing that supports their livelihoods and productive activities, such as starting a small side business, expanding farming, covering education costs or building a house. This contributes to human development for many families and, in turn, fosters potential for local economic growth and more jobs,” said Jane Niedra, investment director of Financial Inclusion at Swedfund.

Select Africa’s customer base largely consists of civil servants, including teachers, nurses, and local administrators, who often find it difficult to obtain loans from traditional banks due to perceived high risk or lack of collateral. The company provides payroll-based lending, allowing borrowers to repay directly from their salaries, reducing default risk and enabling them to build a formal credit history over time.

Founded in 1999 with its first branch in Eswatini, Select Africa has since expanded its footprint across Lesotho, Malawi, Uganda, and Kenya. The Group now operates 19 branches and manages a gross loan book of about $108 million.

Through this partnership, Swedfund and Select Africa aim to unlock opportunities for thousands of underserved public workers, strengthening household incomes, encouraging entrepreneurship, and supporting the broader financial inclusion agenda in sub-Saharan Africa.

In a statement issued by the Head of Service, Mr Bode Agoro, it was confirmed that the work-from-home initiative would be discontinued effective March 31, 2025. 

The decision aligns with the recent implementation of a new minimum wage for civil servants and the government’s vision to enhance public service delivery.

The policy, which had been in effect since February 2024, allowed civil servants in Grade Levels 01 to 14 to work from home for two days a week, while those in Grade Levels 15 to 17 had the option of one remote workday per week. 

The measure was introduced to ease the financial stress on workers due to increased transportation costs, a direct consequence of the fuel subsidy removal.

According to Mr Agoro, the scrapping of the remote work initiative is in line with Lagos State Governor Babajide Sanwo-Olu’s approval of an N85,000 minimum wage for public servants, a policy aimed at improving workers’ welfare. Agoro stated, “It is hereby notified for general information that the governor has approved the cancellation of the work-from-home initiative in the Lagos State Public Service.”

Public servants have now been urged to return to full-time, on-site work in order to boost service delivery across various government ministries and agencies. Agoro further stressed that all public servants should “rededicate themselves to their duties and ensure improved service delivery across Ministries, Departments, and Agencies.”

Public servants, who have been adjusting to the remote work schedule are not pleased with the decision. However, the state government says that the end of the policy, alongside new welfare initiatives, will further improve productivity and service efficiency within Lagos’ public sector.

Aiming to ensure the message reaches all concerned, Mr. Agoro also instructed Accounting Officers to give wide publicity to the cancellation within their respective departments.

However, the emergence of innovative technologies offers a glimmer of hope for these nations, providing an opportunity to leapfrog traditional development hurdles and chart a new path to prosperity.

The introduction of emerging technologies such as renewable energy, mobile banking, and digital agriculture presents a transformative solution for the global south.

These advancements have the potential to revolutionize industries, streamline processes, improve access to essential services, and create new economic opportunities.

By harnessing the power of technology, the global south can bridge the divide and accelerate its development trajectory.

Let’s reflect on some crucial questions that have profound implications for the economic development of the Global South.

First, the failure of economic policies in many nations of the Global South to effectively develop their economies could be attributed to a myriad of interrelated factors.

These might include systemic corruption, weak institutions, inadequate infrastructure, lack of access to capital, and limited technological innovation.

Furthermore, Global South nations can rejig their economies for development purposes by prioritizing investment in human capital, infrastructure, and technological advancement.

This could involve creating conducive environments for entrepreneurship and innovation, improving education and healthcare systems, and fostering sustainable development practices. Implementing sound regulatory frameworks and incentivizing private sector investment can also play a pivotal role in driving economic growth and fostering job creation.

When evaluating the failed economic policies of the Global South nations, it is essential to recognize the shared responsibility of both politicians and civil servants. Politicians are accountable for setting the overall direction and vision for national development, while civil servants are responsible for implementing policies and delivering public services. Therefore, the failure of economic policies often stems from a lack of coordination, integrity, and accountability from both sides.

In seeking solutions, it is important to address the systemic issues that have hindered development. This may involve implementing comprehensive anti-corruption measures, reforming public institutions, and enhancing transparency and accountability.

Additionally, investing in education and training for civil servants and policymakers can help build the capacity necessary for effective economic governance.

Moreover, strengthening democratic institutions and involving the private sector and civil society in policy-making processes can foster inclusive, sustainable, and market-driven development.

The economic development of the Global South rests on addressing the multifaceted challenges and implementing holistic solutions.

By empowering nations to create conducive environments for economic growth, fostering innovation and entrepreneurship, and strengthening governance and accountability, the Global South can emerge as a powerhouse of economic prosperity and sustainable development.

Global South nations face numerous obstacles in developing their economies. High levels of poverty, inequality, and underdevelopment plague these nations.

For example, in 2020, over 40% of the population in Sub-Saharan Africa lived in extreme poverty, with the region’s economy shrinking by 3.7%, as reported by the World Bank.

In addition, issues such as corruption, lack of transparency, and poor governance hinder progress. Sub-Saharan African countries consistently score poorly in measures of control of corruption, rule of law, and government effectiveness, according to the World Bank’s Worldwide Governance Indicators. Furthermore, heavy reliance on natural resources leaves many countries vulnerable to economic volatility caused by fluctuating commodity prices.

Political instability and conflict also impede economic development. Sub-Saharan Africa, in particular, remains the most violent region in the world, according to the Institute for Economics and Peace, with ongoing conflicts adversely impacting economic growth and stability.

To address these challenges, Global South nations must prioritize appropriate policy measures. This includes improving governance, combating corruption, investing in infrastructure, diversifying their economies, and creating an enabling environment for investment.

Furthermore, strengthening institutions, improving access to education and healthcare, and promoting sustainable development are crucial components.

Collaboration with the international community, including development assistance, technical expertise, and partnerships, will also be integral in implementing these strategies.

Through these efforts, Global South nations can work towards overcoming the obstacles to economic development and creating a more prosperous future for their citizens.

Permit me to detail a variety of reasons why the economic policies of many Global South nations fail to develop their economies. Some of the key factors include:

1. Corruption and lack of transparency: Many Global South nations suffer from high levels of corruption, which hinders economic development by diverting resources away from productive uses and creating barriers to entry for new businesses.

2. Lack of infrastructure and access to basic services: Many Global South nations lack the necessary infrastructure and access to basic services such as healthcare, education, and clean water, which are essential for economic development.

3. Political instability and conflict: Political instability and conflict can disrupt economic activity and deter investment, making it difficult for nations to develop their economies.

4. Dependence on natural resources: Many Global South nations are heavily dependent on natural resources, which can lead to volatile and unsustainable economic growth.

To rejig their economies for development purposes, Global South nations can consider implementing the following strategies:

1. Improve governance and combat corruption: Implementing measures to improve governance, transparency, and accountability can help combat corruption and redirect resources towards productive use.

2. Invest in infrastructure and basic services: Investing in infrastructure and basic services can help create the necessary conditions for economic development and improve the quality of life for citizens.

3. Diversify the economy: Global South nations can pursue policies to diversify their economies beyond natural resources, such as investing in manufacturing, technology, and services.

4. Foster an enabling environment for investment: Implementing policies to attract investment, such as reducing bureaucratic barriers and providing incentives for businesses, can help stimulate economic growth.

Although the responsibility for failed economic policies in Global South nations largely rests on the shoulders of political leadership, it is essential to recognize the pivotal role civil servants play in executing and implementing these policies.

While politicians set the overall direction of economic policy and are tasked with ensuring its effective implementation, civil servants are instrumental in carrying out these plans on the ground.

As such, both parties share the blame to some extent. Political leaders must provide clear and effective guidance, while civil servants must be held accountable for their role in executing these policies. Ultimately, a collaborative effort between politicians and civil servants is essential for the successful formulation and implementation of sound economic policies in the Global South.

In addition to the aforementioned solutions, it is crucial to address the systemic issues that hinder economic development in Global South nations.

This could involve implementing policies to combat corruption and improve regulatory frameworks to create a level playing field for businesses.

Strengthening education and healthcare systems, investing in infrastructure, and providing support for small and medium-sized enterprises are also essential steps in promoting economic growth.

Furthermore, fostering innovation and entrepreneurship, as well as prioritizing environmental sustainability and climate resilience, can contribute to long-term economic development in the Global South.

A coordinated effort between the government, private sector, and international organizations is needed to address these multifaceted challenges and drive sustainable economic growth in these nations.

Ultimately, the adoption of emerging technology in the Global South can offer transformative opportunities, and accelerating digitalization can be a key enabler for economic advancement and inclusive growth.

By embracing technologies like artificial intelligence, blockchain, and the Internet of Things, these nations can enhance their productivity, create new job opportunities, and improve the delivery of essential services such as healthcare and education.

Furthermore, investing in digital infrastructure and fostering a supportive ecosystem for tech startups and innovation can contribute to the creation of a vibrant digital economy in the Global South.

Moreover, leveraging technology for sustainable development and environmental conservation presents another avenue for progress.

The use of green technologies, renewable energy solutions, and smart urban planning can help address pressing environmental challenges while simultaneously driving economic development.

Nevertheless, embracing emerging technology also demands addressing challenges such as digital literacy, data privacy, and cybersecurity.

By developing comprehensive policies and regulations, and promoting digital literacy and skills development, the Global South can ensure that the benefits of technological progress are equitably accessible to all segments of society.

In summary and conclusion, by strategically integrating emerging technology into its economic development strategies, the Global South can position itself for success in the digital age, fostering innovation, competitiveness, and resilience in the global economy.

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Prof. Ojo Emmanuel Ademola is the first Nigerian Professor of Cyber Security and Information Technology Management, and the first Professor of African descent to be awarded a Chartered Manager Status.

[Featured Image Credit]

Set to empower the state’s workforce and fuel the digital aspirations of Nigerian youth, the Lagos digital training, focused on digital literacy, aims to bridge the digital skills gap and provide government employees with the tools they need to excel in their roles and contribute meaningfully to the development of Lagos and Nigeria as a whole.

Reports indicate that only 23% of Nigerians aged 16-64 are proficient in digital literacy. The International Labour Organization estimates that over 85 million jobs worldwide will be displaced by automation between now and 2025, highlighting the increasing demand for digital skills across all sectors. Hence, the inevitability of the State’s new initiative.

Speaking at the opening ceremony of the program, held at the Public Service Staff Development Centre, Magodo, the Honourable Commissioner for Establishment and Training, Afolabi Ayantayo, stressed the government’s dedication to ensuring that civil servants are not just participants in the digital revolution, but leaders. 

He mentioned the key role digital skills play in scaling the growing dynamic world stating, “The need for Civil Servants to be proficient in the realm of digital technology is not just a necessity but a strategic imperative.”

This initiative aligns with the THEMES Plus Agenda, Governor Sanwo-Olu’s blueprint for accelerating development across various sectors. In preparing public servants with digital skills, the government aims to improve service delivery, enhance productivity, and promote a culture of innovation within its administrative machinery. This, in turn, will have a good impact on various aspects of life in Lagos, creating a more efficient and responsive government that caters to the needs of its citizens.

The training program’s focus on digital literacy also holds huge importance for Nigerian youth, who represent a considerable portion of the state’s population and the driving force behind the nation’s future. Equipping current government employees with these skills is making way for further integration of digital literacy into future education and training programs. This, in turn, will empower young Nigerians to actively participate in the digital economy and contribute to the nation’s technological advancement.

The Lagos State Government has partnered with UK-AID, the Foreign Commonwealth Development Office, and Tech4Dev to carry out this commendable training program. The initial training program, held in 10 batches of 300 participants each, is a good step forward. 

However, it is essential to note that this is just the beginning. Continued investment in digital skills training across all levels of government and education, coupled with private sector involvement, is vital to ensure that Nigeria capitalises on the huge potential of its digital.

The Nigerian Civil Service consists of employees in Nigerian government agencies other than the military and police. Most employees are career civil servants in Nigerian ministries, progressing based on qualifications and seniority.

After a private meeting with President Muhammadu Buhari, the Minister of Labour and Employment, Chris Ngige, confirmed this to reporters in Abuja.

“As we enter the new year government will make some pronouncements in that direction,” the minister said on the workable timeframe for the implementation of salaries under review.

“The Presidential Committee on salaries is working hand-in-hand with the National Salaries Incomes and Wages Commission. The commission is mandated by the Act establishing them to fix salaries, wages, and emoluments in not only the public service.

“If you want their assistance and you are in the private sector, they will also assist you. They have what is called the template for remuneration, for compensation. So if you work, you get compensated, if you don’t work, you will not be compensated.

“So they have the matrix to do the evaluation, so they are working with the Presidential Committee on Salaries Chaired by the finance ministry and I’m the co-chair to look at the demands of the workers. Outside this, I said discussions on that evaluation are going.”

The Minister of Labour and Employment, Chris Ngige, briefs reporters after meeting President Muhammadu Buhari in Abuja on December 27, 2022.

The Minister had intimated in the past that the present administration will examine the pay of civil officials upwards to counteract the impact of inflation.

Ngige claims that he visited the White House to inform Buhari on the work being done by his ministry as the year draws to a close.

Ngige clarified that the private sector handled its business better, possibly because its management and finances are subject to audit.

“They could do collective bargaining very easily with their workers. The
banking sector, food, beverages and finance, insurance, everywhere.

“So, there is calm there. We didn’t have the desired calmness on the government’s side because of the government’s finances.

“However, I’ve briefed him, we are doing some review within the Presidential Committee on Salaries, and discussions are ongoing. The doctors are discussing with the ministry of health, and insurance people in the public sector discussing and there is a general calmness.

“Hopefully, within available resources, the government can do something in the coming year,” he added.