Moghalu Urges Focus on State Capacity as Foundation for Africa’s Development

Founder of IGET Academy and Economist Kingsley Moghalu warned that genuine progress hinges on effective governance and strong state capacity, not merely macroeconomic policy or market-driven strategies.

Moghalu on Friday argued that the first prerequisite for development is the organising principle of governance, including security, robust institutions, and the rule of law. He stressed that life and property must be protected, and citizens must have confidence that this protection is real. Without this foundation, he said, conflict and insecurity in regions such as Sudan and the Sahel will continue to hamper transformation and prosperity across the continent.

“Individuals must be equal and accountable before the law,” Moghalu declared, contrasting Africa’s governance trajectory with scenes from global politics where leaders face accountability. He pointed to recent high-profile indictments in Israel and South Korea as benchmarks for accountability that remain largely absent in many African contexts.

The former presidential candidate outlined four core elements of state capacity that must be demonstrably delivered by any government: Security of life and property, Effective and efficient taxation as part of a social contract, Delivery of social services, including healthcare, education, and social protection and an enabling environment for business and wealth creation.

“These are the core elements of state capacity,” Moghalu said. “For these to be achieved, every country needs a capable state, public sector and civil service equipped with the knowledge and skills to sustain delivery over generations. This is how development happens.”

Citing World Bank data, Moghalu highlighted a stark reality: African economies lose approximately $1.2 trillion in GDP annually due to weak institutions. He noted that only Mauritius, Seychelles, and Botswana place among the world’s top 50 countries for governance effectiveness, underscoring the gap between markets and the state machinery needed to support them.

“All the emphasis on markets, without state capacity, cannot create the wealth of nations,” he emphasised. “Functioning markets are essential, but it takes a capable state to create an enabling environment for efficient markets. That’s my point.”

Moghalu warned against conflating governance with government overreach, insisting that the aim is not for governments to monopolise the market or stifle economic life with overregulation. Rather, he called for a balanced approach where a strong public sector underpins a vibrant, well-regulated market economy.

These arguments, he said, represent foundational thinking for Africa’s “century” a period defined by sustainable development driven by accountable governance, strong institutions, and a capable state that can sustain inclusive growth over generations.