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Two Battle For Life After Sokoban Road Crash

TWO PERSONS are battling for their lives at the Asafo Agyei Hospital after a speeding vehicle knocked them down at Sokoban in the Atwima Kwanwoma Municipality of the Ashanti Region.

The accident, which occurred last Saturday, involved a private vehicle with registration number GE 461-15, allegedly driven by a suspected drunk driver.

The driver, whose identity has been withheld, was arrested following the incident.

The Assembly Member for the Sokoban-Daban Electoral Area, Kwadwo Boateng, who reportedly led efforts to apprehend the driver, confirmed the accident and said the victims were knocked down while standing by the roadside.

He disclosed that the driver was suspected to have been under the influence of alcohol when the accident occurred.

Mr. Boateng expressed concern over what he described as the increasing spate of pedestrian knockdowns in the area, blaming the situation partly on the absence of speed ramps and roadside barricades.

According to him, his office, together with residents, had repeatedly petitioned the Department of Feeder Roads and the area’s Member of Parliament to facilitate the construction of speed ramps and barricades to check speeding and protect pedestrians.

However, he lamented that the appeals had not received the needed attention, despite several lives reportedly being lost through similar accidents.

‘Several people have died through similar pedestrian knockdowns in this area. We have cried to the authorities for speed ramps, but nobody listens to us until another life is lost,’ he lamented.

The Assembly Member consequently appealed to the relevant authorities to urgently intervene and provide the necessary road safety infrastructure to prevent further fatalities.

Meanwhile, the police have commenced investigations into the accident, while the two victims remain in critical condition at the hospital.

Building standards must keep pace with Kenya’s growth

Kenya’s skyline is changing. Apartments, commercial developments and industrial facilities are reshaping our towns and cities. But investment in the structures we can see must be matched by attention to something less visible: the competence of the people who make those buildings work and the systems that hold them accountable.

Plumbing is a case in point. It sits at the intersection of public health, water security, sanitation and building performance. A building may look impressive, but its value depends on reliable water supply, safe sanitation and drainage that functions as intended.

The question facing Kenya is not whether regulations exist, but whether they work together to establish competence, qualifications, skills progression and who is responsible when standards are not met. The cost of weak standards is rarely paid only by the person who performed the work. It appears later in hidden leaks, rework, damaged property, avoidable maintenance costs and disrupted businesses.

Developers face defects and delays; homeowners inherit repair bills; public investment delivers diminished value for taxpayers. Meanwhile, contractors who invest in training and quality assurance find themselves undercut by shortcuts.

For those of us in contracting, this is not an abstract policy debate. Building technologies, specifications and client expectations continue to evolve. Taller, denser developments demand greater precision in installation, testing and maintenance.

Practitioners entering the trade today need broader technical competencies, supported by credible, standardised ways to demonstrate and continuously upgrade their skills. Kenya already possesses institutions responsible for training, certification, regulation and approvals.

The National Building Code 2024 provides a framework for building design, construction and maintenance. Delivering on its requirements demands competent practitioners, effective supervision and consistent inspection. Standards and competence assurance systems must reinforce one another.

As climate variability increases, properly installed and maintained water and sanitation systems remain indispensable to public health and urban resilience.

A recent industry dialogue involving regulators, contractors, manufacturers, TVET institutions and practitioners highlighted the need for clearer pathways to recognise competence, support professional progression and accountability. Three priorities emerged.

First, make competence and career progression transparent and inclusive. Employers and property owners should understand what qualifications and accreditation signify. Practitioners need a visible route from apprenticeship to master artisan and specialised contractor, including Recognition of Prior Learning (RPL).

Many skilled Kenyan fundis acquired their expertise through hands-on informal learning. Professionalisation must certify and elevate these artisans against recognised standards, rather than exclude them for lacking formal academic credentials.

Second, align existing institutions around practical delivery. Training curricula, occupational standards, construction regulations and accreditation mechanisms should complement one another. Government agencies, industry and training bodies should clarify their responsibilities and make the route from learning to competent practice straightforward.

The goal is seamless inter-agency coordination, not another layer of bureaucracy.

Third, integrate strict enforcement into professionalisation. Technical standards mean little if non-compliance faces no meaningful scrutiny. Inspection, supervision and accountability must accompany investment in skills.

Developers and public procuring entities also have a role: purchasing decisions should reward competence and quality, not simply the lowest price. The objective is to protect consumers, reduce avoidable losses and create a legitimate route to economic empowerment for skilled practitioners. A functional system makes quality easy to verify and poor practice difficult to conceal.

Employers must also lead from the front. Structured workplace learning paired with classroom instruction bridges technical theory with site conditions. Industry-led dual apprenticeship programmes such as PropelA show how employers and training institutions can jointly develop technical competence.

The dialogue also opened discussions around stronger industry coordination, potentially through a dedicated plumbing institute. Such an organisation can support professional development, industry frameworks and practitioner representation, but cannot replace statutory oversight.

Kenya’s ambitions for housing, water, sanitation and urban infrastructure are substantial. Yet buildings perform only as well as the systems within them and the people who design, install and maintain them. Investment in human competence protects investment in construction.

Professionalising the plumbing trade is not a narrow industry concern. It helps ensure Kenya’s rapid urban growth delivers safe, resilient and lasting infrastructure for households, communities and businesses.

The true measure of a modern city is not how fast or how high it builds. It is whether what it builds works, reliably, lasts and serves people safely. As Kenya raises its skyline, the professional standards beneath it must rise too.

When dollar rises, Africa must rise higher

When Uganda’s Shilling briefly touched Shs4,500 to the dollar on October 23, the tremor travelled beyond Kampala’s trading desks. It entered fuel stations, factory floors and household kitchens. The dollar never knocks on a farmer’s door, yet its footsteps echo through fertiliser prices, transport fares, and shrinking family budgets. Nor does the Treasury escape its shadow, as a weakening Shilling increases the domestic-currency cost of meeting government debt-servicing obligations.

We have been here before. We have watched currencies stumble, import bills swell, and governments open their monetary umbrellas. Markets may stabilise; storms eventually pass. But sunshine does not repair a leaking roof. Recovery is not resilience.

Yet another truth deserves recognition: Africa has been here before, but Africa is not where it was. African governments have not stood idle. They have negotiated the African Continental Free Trade Area, improved East African border crossings, invested in roads and electricity links, and supported the Pan-African Payment and Settlement System.

Uganda’s development plans prioritise industrialisation and value addition. These are not empty promises without foundations; they are foundations awaiting fuller use. An unfinished house is not an empty construction site. Yet economic integration and transformation can no longer wait: every delay leaves households exposed to the next storm.

The present currency pressures expose what remains unfinished. Uganda’s energy-sector net demand for foreign exchange rose from $360 million (Shs1.55 trillion) to $620 million (Shs2.67 trillion) in comparable three-month periods ending in September, according to figures cited by the government. More expensive petroleum consumes the dollars that manufacturers and importers also need.

The Bank of Uganda raised its benchmark interest rate to 12 percent. Monetary tightening, prudent reserve intervention and fiscal discipline can contain inflation and calm disorderly markets. Yet reserves are umbrellas, not factories. Higher rates cannot roast coffee, supply reliable electricity or build an export industry: costly credit hinders tomorrow’s producers. A weaker currency can help competitive exporters, but expensive imports and dollar debts can overwhelm that gain.

Consider a hypothetical government owing $20 billion (Shs86.26 trillion) in dollars. At Shs3,500 per dollar, its principal equals Shs70 trillion, at Shs4,500, Shs90 trillion. The dollar obligation is unchanged, and the higher valuation is not an immediate payment. But servicing it requires more shillings. The IMF projected Uganda’s interest payments at almost one-third of domestic revenue in 2025/2026. Debt should plant productive seeds, not mortgage tomorrow’s harvest.

Africa must progressively process more of what it produces. We grow coffee but capture too little of its roasting and branding value; we produce cotton yet import higher-value textiles. Still, a factory without affordable power, skilled labour or markets is merely an expensive monument to ambition. Industrialisation must be commercially competitive, not ceremonial.

UN Trade and Development reports that intra-African Commerce accounts for roughly 16 percent of the continent’s trade, while processed and semi-processed goods constitute 61 percent of regional exports. That is both evidence of progress and an invitation to go further.

I propose turning trade corridors into value corridors. A trade corridor moves goods across borders. A value corridor links farms, processors, reliable electricity, financing, technical skills, and buyers so neighbours create value together.

We have been here before, but history does not need to become our permanent address. Africa has built bridges; now productive commerce must cross them. It has laid rails; now competitive industries must fill the wagons. Economic transformation cannot wait for another summit, another plan or another generation. The next time the dollar rises, let Africa say not simply that it survived another storm, but that it strengthened its roof since the last one.

Trade corridors move what Africa produces. Value corridors expand what Africa can produce together.

KolaDaisi varsity VC highlights quality teaching governance as institution marks 10 years

The Vice-Chancellor of KolaDaisi University Ibadan Professor Olajumoke Morenikeji said the true value of a higher institution lies in the quality of its teaching students’ intellectual development and the integrity of its governance rather than the number of years it has existed programmes offered or physical structures.

Morenikeji spoke on Monday at a press conference held on the university campus in Ibadan ahead of its 10th anniversary and sixth convocation ceremony.

She said the briefing was organised not only to announce activities lined up for the celebrations but also to review the institution’s achievements over the past decade and outline its future priorities.

The vice-chancellor recalled that KolaDaisi University popularly known as KDU was established ten years ago by business mogul and Bashorun of Ibadanland Chief Kola Daisi.

She said the institution was founded with a commitment to providing quality tertiary education producing graduates with sound character and practical competence and contributing to Nigeria’s social and economic development.

Reflecting on the state of tertiary education in the country the Vice-Chancellor emphasised that the future of private universities will not be determined by building expansion or multiplying academic programmes but by strict adherence to quality assurance institutional governance professional accreditation and graduates’ marketability.

Professor Morenikeji said at the briefing that the university will graduate a record 224 students across 16 academic disciplines at the upcoming convocation ceremony.

She pointed out that the university has grown from a modest total of 52 graduates in its early years to 224 this year reflecting steady expansion made possible by sustained investments in modern lecture rooms well-equipped laboratories comfortable hostel accommodation robust ICT infrastructure and other essential facilities for a modern learning environment.

She reassured parents and stakeholders of the institution’s academic standards explaining that KDU has secured full accreditation from the National Universities Commission for most of its academic programmes across various faculties while others are currently undergoing routine re-accreditation.

The university presently runs competitive programmes spanning humanities sciences law health sciences and engineering including specialised courses such as Biochemistry Microbiology Industrial Chemistry Computer Science Cybersecurity Accounting Business Administration Economics Mass Communication Law and History and Diplomatic Studies.

Beyond academic approval the Vice-Chancellor disclosed that the university has earned key professional approvals notably from the Nursing and Midwifery Council of Nigeria and is actively engaging other regulatory and professional bodies to ensure KDU graduates have clear uninterrupted professional pathways upon graduation.

To further elevate the institution’s academic standing Professor Morenikeji highlighted ongoing efforts to build a robust research culture.

She noted that KDU has instituted formal research and intellectual property policies established a centralised database of research outputs and provided strong support for digital research infrastructure and competitive grant proposals.

She shared notable examples of the university’s research achievements including a patented plant-based bio-pesticide formulated locally from lemongrass and orange peel extract.

She also cited international recognition achieved by KDU scholars such as Dr. John Akintola’s research visit to a prestigious institute in France Dr. Anne Adeyonju’s research endeavours in Canada and Dr. Tenuola’s award of a child grant by the Maria Sibylla Merian Institute for Advanced Studies in Africa for critical research on displacement and indigenous farming practices in South-West Nigeria.

Many other academic staff she added continue to represent the university at international symposia and benefit from foreign academic fellowships.

Professor Morenikeji stressed that learning at KDU extends beyond classroom lectures explaining that several academic departments have struck partnerships with industry leaders to secure practical hands-on training for students while university teams work actively to link graduating talent directly with employers through organised job fairs.

In addition KDU has partnered with technical institutes to offer campus-based vocational certifications in high-demand skills such as multimedia installation lighting and stage management videography creative production and event management.

On student welfare and community engagement the Vice-Chancellor reiterated the management’s dedication to maintaining a safe comfortable and vibrant campus life.

She listed ongoing investments in healthcare sports host-building projects internet connectivity and a partnership under the National Health Insurance Scheme to guarantee affordable medical care for all students. She also commended KDU’s community outreach initiatives which include regular free health drives and infrastructural support for market women within the host communities.

Looking ahead to the next decade Professor Morenikeji revealed that management will focus heavily on deepening educational quality strengthening teaching and learning expanding research and innovation building strong industry partnerships for graduate employment and improving overall campus welfare and infrastructure.

She reassured the public that while the first decade established the foundational building blocks the coming decade will deepen KDU’s impact and solidify public confidence in its mission.

Charging the graduating set to be worthy ambassadors of their alma mater the Vice-Chancellor urged them to remain humble innovative and principled as they step into the world letting the quality of their choices the excellence of their work and their service to humanity speak for their education.

Earlier in his opening remarks the Registrar of the university Mr. Haruna Adetu welcomed media executives and guests to the briefing. He announced that the 10th anniversary and sixth convocation ceremonies will span two weeks running from October 26 to November 5 and will feature sports competitions community health outreaches entrepreneurship exhibitions award presentations the formal conferment of degrees and a high-profile Convocation Lecture to be delivered by former President of Nigeria Chief Olusegun Obasanjo.

UNICEF EU YABATECH launch skills project for 3400 youths in Kano Jigawa Sokoto

The Youth Employability and Skills Project (YESP) targeting 3400 young people in Kano Jigawa and Sokoto States was launched on Monday in Kano.

Yaba College of Technology is implementing the project in partnership with the Industrial Training Fund (ITF) with support from UNICEF and the European Union.

The launch held at Niimah Guest Palace Kano featured stakeholder consultations and skills validation for the 30 selected Local Government Areas with 10 local government councils per state.

The Rector of YABATECH Dr. Engr. Ibraheem A. Abdul said YESP is a strategic response to the need to equip young people with market-relevant skills for employment and entrepreneurship.

He said YABATECH is currently training about 18000 youths nationwide across its centres in Epe Ikeja and Yaba through its ICT Skills Hub and Digital Technology Academy which offer courses in Computer Hardware Mobile Phone Repair AI Machine Learning Data Analytics Software Development Cloud Computing Cybersecurity and Blockchain.

He cited the college’s experience in the Girls’ Education and Skills Partnership (GESP) where 200 girls received start-up toolkits and 94 beneficiaries earned NSQF Level 2 certificates in 2025 adding that the new UNICEF grant extension with ITF has strengthened skills training delivery in the North.

YESP Coordinator Dr. Funmilayo Doherty said Kano will have 1200 beneficiaries while Jigawa and Sokoto will have 1100 each.

She listed the skill areas as Solar PV Installation and Maintenance; Climate-Smart Poultry and Micro-Livestock Production; Agro-Processing and Solar Drying; Economic Tree Production; Briquette and Clean-Energy Production; Waste Recycling and Upcycling; Climate-Smart Irrigation; Compost Production; and Computer Hardware Maintenance and GSM Repair.

Doherty said the project will not impose skills on communities noting that the validation exercise will align training with local market demand and enterprise opportunities.

‘Our question should be practical: After completing the training how will a young person use this skill to earn a sustainable livelihood?’ she said.

She said training will align with National Occupational Standards and the National Skills Qualification Framework with emphasis on gender-responsive teaching safeguarding and competency-based assessment. Beneficiaries will earn NSQ Level 2 certification and YABATECH completion certificates.

She added that Community Entrepreneurship Hubs will be established in the three states for post-training mentorship and enterprise support.

UNICEF in its remarks said the project demonstrates shared commitment to investing in young people as drivers of economic growth with a focus on young women and vulnerable youths.

‘Through YESP 3400 young people will gain market-relevant digital green technical and entrepreneurial skills and support to transition from learning to earning’ it said urging private sector collaboration for internships apprenticeships and jobs.

The event was attended by the Chief of the UNICEF Kano Field Office the Executive Secretary of NBTE the Zonal Director of ITF Commissioners from the three states traditional leaders training providers and youth groups.

Lone player wins ?15-M 6/45 Mega Lotto jackpot

A lone ticket holder won the ?15 million MegaLotto 6/45 jackpot on Monday, November 2, 2026, according to the Philippine Charity Sweepstakes Office.

No player bagged the Grand Lotto 6/55 jackpot.

Mega Lotto 6/45 draw result: 11-02-26-07-44-05 Jackpot prize: 15 million

Grand Lotto 6/55 draw result: 45-43-07-53-25-48 Jackpot prize: ?326.05 million

Minor games

The PCSO also released the results of the 4D, 3D and 2D Lotto draws for Nov. 2.

4D Lotto: 1-1-8-3 – ?33,142 prize; 26 winners.

3D Lotto (2 p.m.): 9-8-2 – ?4,500 prize; 121 winners.

3D Lotto (5 p.m.): 5-8-4 – ?4,500 prize; 94 winners.

3D Lotto (9 p.m.): 2-5-7 – ?4,500 prize; 533 winners.

2D Lotto (2 p.m.): 19-05 – ?4,000 prize; 361 winners.

2D Lotto (5 p.m.): 19-07 – ?4,000 prize; 163 winners.

2D Lotto (9 p.m.): 05-19 – ?4,000 prize; 527 winners.

Draw schedule

Grand Lotto 6/55 draws are held every Monday, Wednesday and Saturday, while MegaLotto 6/45 draws take place every Monday, Wednesday and Friday.

Irene Agbo features in Black History Month theatre production

Actress Irene Agbo has appeared in 10 Decades: The Black Race a theatre production staged for Black History Month to explore Black history identity heritage and the experiences of Black communities across generations.

The production uses theatre to examine historical events cultural identity struggles and achievements that have shaped Black communities while highlighting the importance of preserving their stories for future generations.

Agbo played a key acting role in the production which sought to bring historical experiences to life through character interpretation dialogue and dramatic performances.

The play explored themes of resilience cultural memory identity belonging and the continuing quest for recognition among Black people.

Her participation formed part of the production’s broader storytelling effort to connect historical events with human experiences allowing audiences to reflect on how the past continues to influence present-day identities and communities.

Through costume movement facial expressions and dialogue the performers sought to portray the characters’ experiences and emotions within the historical narrative.

The production also highlighted theatre’s role in preserving cultural heritage and making historical accounts accessible beyond conventional history books.

Unlike presentations that focus mainly on dates and historical milestones 10 Decades: The Black Race sought to explore the human experiences behind history including the struggles sacrifices and achievements of generations of Black people.

Agbo’s involvement added to the collective performance encouraging conversations about Black heritage and the importance of keeping historical narratives alive.

The production formed part of activities marking Black History Month an annual observance dedicated to recognising the contributions history and cultural heritage of people of African descent.

Through the stage presentation the organisers sought to remind audiences that Black history is not merely a record of past events but a continuing narrative that shapes identity culture and society.

PHOTOS: Tinubu granted access to pray inside Ka’abah

The Custodian of the Holy Mosques of Makkah and Madinah, King Salman bin Abdulaziz Al Saud, has granted President Bola Ahmed Tinubu a rare privilege of leading Nigeria’s delegation to pray inside the Holy Ka’abah.

The president was led into Ka’abah by Sheikh Dahlulah Muthawal of Masjid al-Haram.

Tinubu thanked the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud for granting him and members of his Nigerian delegation the opportunity to enter the Holy Ka’abah in Makkah and offer prayers to Almighty Allah.

The President described the honour as a historic and deeply cherished spiritual experience, reflecting the longstanding bonds of friendship, mutual respect and cooperation between Nigeria and the Kingdom of Saudi Arabia.

President Tinubu said faith in Allah had strengthened his conviction that his emergence as Nigeria’s leader was an extraordinary blessing that must be matched with dedicated service to the country.

How AI is changing how home appliances work

In a traditional home, a refrigerator keeps food cold until someone adjusts its settings, a washing machine runs on a manually selected programme, and a dishwasher completes the same cycle no matter how dirty the dishes are.

The person using the appliances makes most of the decisions. But in the next generation of homes, these routines could happen in the background. A refrigerator, for instance, will learn when a household opens its door most often and adjust its cooling performance accordingly, while a washing machine analyses a load’s fabric and dirt levels before deciding how to clean it.

A smart fridge could also recognise food items, track what is running low and help plan the next grocery shopping.

Artificial intelligence (AI) and data analytics are finding their way into everyday household appliances, as manufacturers seek to turn conventional machines into devices that learn from their users, adapt to changing conditions and optimise their performance over time.

The shift is part of efforts by home appliance manufacturers to make products more responsive to household routines, while promising consumers better energy efficiency, improved convenience and more personalised experiences.

South Korean technology giant LG, for example, says its washing machines use deep-learning technology – autonomously learning complex patterns and representations from large amounts of raw data.

This technology makes machines select washing motions based on fabric type and the level of soil, to clean clothes effectively while protecting delicate materials.

AI-enabled dryers can adjust drying time and temperature according to the weight, fabric type, and moisture levels of each load. The system can reduce drying time where possible and lower temperatures for garments that retain moisture, helping protect fabrics from excessive heat.

Similarly, dishwashers are being designed to detect how dirty dishes are and adjust parameters such as water temperature, rinse cycles, and detergent use to suit the load.

‘AI is a very human-centric technology, and home settings are one of the most personal and complex spaces where daily life happens. We aim to use it to understand homes better to cater to each customer’s lifestyle,’ Chaerim Ji, senior public relations manager for LG’s Home Appliance Solution business, recently said at an event in Seoul.

The tech giant says its refrigerator technology, for example, can analyse door-opening patterns over three weeks to establish when a household uses the appliance most frequently.

It then adjusts the compressor’s operation according to those patterns, with the aim of maintaining food freshness while reducing unnecessary energy consumption.

‘This data helps it adjust the compressor movement and the compressor’s output, so it gives more freshness and saves energy,’ Ms Ji said.

Rival Samsung is pursuing a similar approach with AI-powered food recognition, developed using Google’s Gemini technology, in refrigerators to help households manage their supplies.

It combines AI vision with cloud-based intelligence to identify fresh produce and packaged goods in the fridge. The firm says the system can also analyse usage patterns and notify users when frequently consumed items may need replenishing, making grocery planning easier and potentially reducing food waste.

Other manufacturers also building connected appliance ecosystems include GE Appliances, owned by China’s Haier, which has connected smart appliances with services including Google Assistant and Google Cloud.

Across the industry, manufacturers are combining sensors, machine learning, cloud services and mobile applications to enable appliances to communicate, receive software updates and offer additional features.

Through a smartphone app, users can monitor appliances, adjust settings and receive alerts, while manufacturers can deliver software upgrades that introduce new functions after a product has been purchased.

‘The technology also proactively monitors the product status and the user’s patterns to identify potential problems before they occur,’ Ms Ji said.

Beyond refrigerators and laundry machines, smart ovens can use saved preferences to simplify cooking, while robot vacuum cleaners can map room layouts and adjust their cleaning paths to improve coverage.

Kenya’s demand for household appliances has been supported by an expanding middle class and the availability of products through both physical retailers and online platforms.

The market has attracted global brands including LG, Samsung, and Germany’s Bosch, alongside local players such as Von.

Research firm Research Nester estimated Kenya’s home appliances market at $184.48 million (Sh23.9 billion) in 2018 and projected it to reach $363.92 million (Sh47.2 billion) by the end of 2027, representing a compound annual growth rate of 7.88 percent.

But analysts say AI-powered appliances raise questions about privacy and dependence on connected services.

Appliances that rely on cloud processing or mobile applications may require stable internet connectivity for some functions, while the collection of household usage patterns creates scrutiny about how such data is stored, used, and protected.

Buyers would also have to contend with security risks as was witnessed in early October 2026 when hackers who sabotaged refrigeration systems at hundreds of French supermarkets, exploiting the growing connectivity of equipment that was once largely mechanical.

Hackers are increasingly targeting internet connected gadgets and appliances including security cameras, washing machines, refrigerators, video doorbells, alarm systems, smart locks, thermostats and central ?heating systems

Misguided post-COVID-19 recovery and economic stagnation

The Philippines can no longer afford to mistake economic growth for economic transformation. The International Monetary Fund in 2024 reported that Philippine labor productivity remained below its prepandemic trend, while medium-term potential growth was revised downwards from 6.5 percent before the pandemic to 6.0-6.3 percent.

The 2024 Bangko Sentral ng Pilipinas study on total factor productivity (TFP) supports these findings, indicating that Philippine productivity was below its prepandemic level, with estimated TFP growth in 2022 ranging from -1.9 percent to 0.8 percent, depending on the trend estimate.

A critical question can be raised: Did the Philippines restore its productive capacity after the pandemic, or merely resume activity without rebuilding its foundations and making it resilient to external shocks?

The economy contracted by 9.5 percent in 2020, rebounded 7.6 percent in 2022, then slowed to 5.5 percent in 2023.

Yet, a recovering gross domestic product (GDP) does not necessarily mean a recovering productive potential. Growth has gone downhill since then.

During the pandemic, businesses closed, investment collapsed, workers lost jobs and firms’ accumulated knowledge, supplier relationships and production routines were disrupted.

These losses may have shifted the country’s production possibility frontier (PPF) inward, thereby reducing the economy’s productive capability.

As proof of this weakened productivity capability, the Asean+3 Macroeconomic Research Office initially reported that Philippine investment fell by about 34 percent in 2020 from the 2019 level. Pandemic scarring is later seen to have cut annual potential growth by an average of 1.69 percentage points from 2022 to 2024, with roughly two-thirds due to slower physical capital accumulation.

These losses compounded long-standing weaknesses. The Philippines has struggled to build a broad industrial base and move agricultural workers into higher value-added activities.

Consumption, supported partly by overseas Filipino workers’ remittances, stays central to domestic demand. Remittances are indispensable to households, but consumption cannot substitute for a productive economy generating technological progress, sustained productivity gains and better-paying jobs.

The missed opportunity in 2022

The strong GDP growth in 2022 offered an opportunity to rebuild the economy’s productive capacity. Instead of chanting growth, the government could have pursued a coordinated industrial strategy to restore investment, upgrade technology, develop skills and reconnect domestic suppliers to production networks.

Technology is central since machinery alone is insufficient. Productive capacity depends on firms’ ability to acquire, operate, adapt and improve technology, which decides whether investment raises productivity and enables more sophisticated production. Without it, the country risks being trapped in lower value-added activities despite participating in global markets.

A capability-driven industrial policy could have found and subsidized functionally upgraded industries that specialize in nonroutine jobs and produced incomes according to their ability to develop technological change, create domestic value and generate productive linkages.

To do this, public support must be conditional, transparent and time bound, tied to measurable improvements in productivity, technology adoption, workforce skills and export performance.

Crucially, these capabilities could have spread beyond large enterprises. Supplier development programs could have trained micro, small and medium enterprises to adopt technology, meet quality standards and become reliable suppliers to advanced firms.

Assistance could have been judged by capability improvements, not the number of beneficiaries. Investment, education, trade, innovation, development finance and infrastructure could have been coordinated to support this transformation.

The cost of misguided policy

Reforms beginning in 2022 required costly public investment, but wrong policies carried costs as well. Early intervention could have preserved viable enterprises, skilled workers and supplier relationships before deterioration made rebuilding harder. It could have accelerated productive investment and strengthened domestic firms before subsequent headwinds intensified.

A stronger industrial base would not have insulated the Philippines from global commodity price shocks, tighter monetary conditions or weaker external demand. However, more productive firms, diversified production and deeper domestic supply chains could have provided greater capacity to adapt, sustain output and protect employment. Better paid productive jobs would have strengthened household welfare and confidence.

Appropriate reform would necessarily have increased immediate government spending. Its potential advantage however, was lowering the longer-term cost of rebuilding lost capabilities while expanding the productive base from which future income and public revenue could grow.

This required disciplined support for viable firms, measurable performance targets, withdrawal of aid from persistent underperformers and safeguards against indiscriminate subsidies and corruption.

Rebuilding productive capacity

The pandemic did not cause all the structural weaknesses, but it exposed and deepened them. Not pursuing capability-building reforms decisively during the recovery left the country vulnerable to subsequent shocks and allowed further erosion of its productive potential.

The government must urgently move beyond managing the economy’s immediate pressures and commit to a disciplined industrial policy that builds productive capabilities, upgrades technology and diffuses them across domestic firms.

Every year of delay risks widening the gap between what the Philippines produces today and what a stronger industrial base could produce. Without decisive action, economic stagnation will no longer be merely a looming risk. It could become this administration’s defining legacy.