Africa's economic potential positions the continent as a key player globally

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Dr. Akinwumi Adesina (R), President of the African Development Bank Group (AfDB), highlights the pivotal role of financing in unlocking Africa's vast potential and numerous opportunities

By Guardian Reporter , 

Dr. Akinwumi Adesina, President of the African Development Bank Group (AfDB),

highlights the pivotal role of financing in unlocking Africa's vast potential and numerous opportunities. He emphasizes that Africa's significance can no longer be overlooked.

Delivering an impactful address to a diverse audience of diplomats, investors, academics, politicians, and media at the esteemed Chatham House in London, Dr. Adesina passionately explained the reasons behind his optimism for Africa.

According to a statement released by the bank yesterday, AfDB highlighted Africa as a continent brimming with tremendous opportunities. With a youthful, dynamic workforce, significant renewable energy potential, rich biodiversity resources, rapid regional integration, and innovative solutions, the continent is poised for growth.

Dr. Adesina emphasized the resilience of African economies amidst global challenges, pointing out that the region is the second-fastest-growing after Asia. Citing the Bank's African Economic Outlook Report, projecting economic growth of 3.7 percent in 2024 and 4.3 percent in 2025.

The report, unveiled during the Bank's Annual Meetings in Nairobi in May, revealed that 15 countries achieved real growth rates exceeding 5 percent, with half of the world's 20 fastest-growing economies located in Africa.

As he discussed the path to achieving strong economic growth and resilience, Dr. Adesina emphasized the importance of addressing challenges such as climate change, rising debt levels, and the need for critical global financial reforms.

Highlighting the essential factors for unlocking Africa's economic prospects, he stressed the necessity of structural economic changes, increased agricultural productivity, reliable electricity provision, accelerated infrastructure investments, digitalization, empowerment of women and youth in the economy, and industrialization through enhanced private sector engagement.

During the address, focus was placed on successful initiatives like the Technologies for African Agricultural Transformation program, which has significantly boosted crop productivity for millions of farmers. Noteworthy achievements, such as achieving self-sufficiency in wheat production in Ethiopia through the distribution of heat-resistant wheat, covering millions of hectares, were also shared.

The event, attended by a diverse audience including diplomats, international institutions, investors, startups, civil society, students, academics, and media representatives, aimed to facilitate discussions on key issues impacting Africa's economic development.

Dr. Adesina acknowledged prevailing challenges like youth unemployment, poverty, debt vulnerability, and political instability but dispelled misconceptions about Africa being a risky investment destination. Referencing a comprehensive study, he highlighted Africa's low infrastructure loan default rate, indicating a promising investment landscape compared to other regions worldwide.

Dr. Adesina, President of the African Development Bank Group (AfDB), emphasized the need for an independent African credit rating agency to address misperceptions and ultimately save African countries billions in debt service payments. He also highlighted the importance of enhancing security, expanding concessional and private sector financing, and the recent approval of a $117 billion callable capital increase to bolster the Bank's lending capacity and support Africa.

As the Bank aims to "be bigger, bolder, and better," Dr. Adesina discussed successful initiatives such as the issuance of sustainable hybrid capital, attracting global commendation. Projects like the Alliance for Green Infrastructure in Africa (AGIA) and the Desert-to-Power initiative in the Sahel aim to promote green projects and solar power generation, reflecting the Bank's commitment to sustainable development.

The Bank's support for large-scale projects, such as the LNG project in Mozambique, the Dangote Refinery Complex, and the OCP phosphate company in Morocco, showcases its dedication to mobilizing private sector investments in Africa. Dr. Adesina emphasized these accomplishments as key components of the Bank's new strategy for 2024-2033, envisioning a prosperous, inclusive, and resilient Africa.

With a focus on education and skills development, particularly for youth and women, the Bank's initiatives like the Affirmative Finance Action for Women in Africa (AFAWA) and the Africa Investment Forum aim to empower women entrepreneurs and attract investments in Africa, amounting to over $180 billion since 2018.

Dr. Adesina expressed optimism about Africa's future, emphasizing its pivotal role in global prosperity saying the continent is critical to the future of the world. It's a vision Africa deserves and it's a vision we'll achieve.

“Africa's prosperity and emergence as a pivotal continent are not just aspirations but attainable realities,” he affirmed.