The African Development Bank Group Dr Akinwumi Adesina stated on Friday that Africa urgently needs to chart its future through self-reliance, strategic partnerships, and leveraging its abundant natural resources to wean itself from aid dependency in the face of declining international funding, tariffs, and geopolitical tensions.

He gave an insightful talk at the 14th Convocation Ceremony of the National Open University of Nigeria (NOUN) in Abuja.

The address “Advancing Africa’s Positioning within Global Development and Geopolitical Dynamics” outlined a bold vision for Africa’s future in a rapidly changing global landscape.

“The recent dismantling of the official development aid agency in the US, and similar anti-aid measures in other parts of Europe, means that the old development models that Africa has always relied on will no longer work,” he told the audience.

“The era of aid or free money is gone. African countries must now learn to develop via investment discipline. Countries can no longer rely on aid for growth or count it as part of government revenue, as has been the case for decades. Benevolence is not an asset class,” the Bank Group president said.

At Nigeria’s largest open university, Adesina emphasised that Africa must overhaul its approach to achieving fast-paced growth and development. He said that for the continent to spur growth, it should rapidly ensure the full implementation of the African Continental Free Trade Area: “Produce local, buy local, trade more locally,” he charged the continent.

Adesina outlined several of the continent’s most pressing issues, such as dwindling development assistance, stringent immigration laws, depreciated natural resources, and international trade disputes. But he presented these difficulties as opportunities for Africa to rethink its place in the world.

The African Development Bank is developing a new paradigm for reestimating Africa’s GDP based on accurately assessing its enormous natural capital. As a result, Africa can borrow more money to fund its development, and its debt to re-estimated GDP will be reduced. According to the Bank, accurately appraising Africa’s green wealth will raise the continent’s nations’ credit ratings and risk profiles.

He said of recent global tariff tensions:   “47 out of 54 African countries have been placed under higher US tariffs. The immediate direct effects of the tariffs on African countries will be a significant reduction in exports and foreign exchange availability. This will send other shock waves through African economies.”

He continued: “Local currencies will weaken due to reduced foreign exchange earnings. Inflation will increase as the costs of imported goods rise and currencies devalue against the US dollar. The cost of servicing debt as a share of government revenue will rise, as expected revenues decline.”

To build resilient economies, Adesina said:  “Africa must chart its future, relying not on the benevolence of others but on its determination for self-reliance, building reliable alliances, leveraging opportunities in the global dynamics, while putting Africa first. Only then will Africa be great again!”

Some key initiatives led by the African Development Bank under Adesina’s leadership include the establishment of the Africa Financing Stability Mechanism to help African countries refinance debt service payments;  the development of Security-Indexed Investment Bonds to rebuild areas devastated by conflict; the creation of the African Credit Risk Agency to fairly assess Africa’s investment risks; the implementation of the $25 billion African Adaptation Acceleration Program to support the continent’s resilience to climate change; and the development of a framework to revalue Africa’s GDP based on its natural capital wealth.

The Bank Group president emphasised the importance of adding value and processing natural resources, explaining that this is the key to Africa’s future prosperity. He also cautioned that Africa must carefully negotiate its engagement in the global geopolitical rush for critical minerals and rare earth elements.

“Africa can be competitive in these global value chains. It must move away from exporting raw minerals and move into processing and value addition to benefit from the high returns at the top of global value chains,” Adesina said, accompanied by his wife, Grace Yemisi Adesina.

He called for greater value addition to everything Africa produces, including oil, gas, minerals, metals, rare earths, and agricultural products.

The African Development Bank is working with the African Union and the Economic Commission for Africa to develop the African Green Minerals Strategy. The strategy will support countries in embracing strong corporate governance, transparency, environmental protection, and sound mineral stewardship, including social responsibility and protection of communities’ lands and rights.

“Africa must end the exports of its raw materials,” Adesina warned.  “The export of raw materials is the door to poverty. The export of value-added products is the highway to wealth. And Africa is tired of being poor.”

The lecture also addressed the importance of investments in youth education and entrepreneurship. With Africa’s population projected to reach 2.4 billion by 2050 and 75% under 35, Adesina stressed the need for quality education and skills development aligned with the digital economy.

As he approaches the end of his second five-year term as president of the African Development Bank Group in September, Adesina reflects on his legacy of strengthening and transforming the institution. Under his leadership, the Bank’s general capital increased from $93 billion in 2014 to $318 billion today while achieving recognition as the Most Transparent Financial Institution in the world for two consecutive years.

Adesina will be awarded an honorary doctorate from NOUN on Saturday. He is dedicating the honour to his late father, Roland F. Adesina, whom he credits with instilling the value of education in him.

The National Open University of Nigeria is considered Africa’s largest and the world’s second-largest open-learning university. Through distance learning and online education, NOUN offers over 2,000 courses to more than 600,000 students, providing accessible and quality education to all Nigerians.

The National Open University of Nigeria is regarded as the biggest open learning institution in Africa and the second largest in the world. More than 600,000 students can enrol in more than 2,000 courses offered by NOUN through online and remote learning, giving all Nigerians access to high-quality education.

Prof. Olufemi Peters, the university’s vice-chancellor, informed the audience that Adesina was picked to give this year’s convocation speech “to enable Nigerians to benefit from his outstanding global experience.”

Adesina also conducted the groundbreaking ceremony for the university’s Regional Training and Research Institute for Distance and Open Learning building. The institution is one of West Africa’s premier open and distant learning facilities.

Source: Africa Development Bank Group

Image Credit: The Sun