LONDON, June 9, 2024 – African Development Bank President Dr. Akinwumi Adesina has emphasized Africa’s vital role in shaping the future of the global economy.
Speaking at Chatham House to a distinguished audience of diplomats, investors, academics, politicians, and media representatives, Adesina underscored the continent’s vast economic potential and untapped opportunities.
“Africa is critical to the future of the world,” Adesina declared in his presentation titled “Envisioning Africa’s Economic Prospects.” He highlighted Africa’s significant assets, including a young, dynamic workforce, extensive renewable energy potential, rich biodiversity, and rapid regional integration.
Adesina pointed out that despite global challenges, Africa remains the second-fastest-growing region in the world, trailing only Asia. The African Economic Outlook Report projects the continent’s economic growth at 3.7% in 2024 and 4.3% in 2025. Fifteen African countries have achieved real growth rates of at least 5%, with half of the world’s 20 fastest-growing economies located on the continent.
“The resilience of Africa’s economies is remarkable,” Adesina said. “But unlocking Africa’s economic potential requires structural changes, boosting agricultural productivity, accelerating infrastructure investments, supporting digitalization, creating jobs for women and youth, and driving industrialization through private sector mobilization.”
Adesina highlighted the success of the Bank’s Technologies for African Agricultural Transformation (TAAT) program, which has increased crop productivity for 13 million farmers. In Ethiopia, distributing heat-resistant wheat has led to self-sufficiency in wheat production, covering 2.2 million hectares.
He also addressed misconceptions about investment risks in Africa, referencing a 14-year Moody’s Analytics study showing Africa’s low infrastructure loan default rate of 1.9%, compared to higher rates in other regions. He advocated for an independent African credit rating agency to provide fairer assessments and reduce excessive risk premiums, potentially saving African countries $75 billion annually in debt service payments.
Emphasizing the importance of expanding concessional financing and private sector investments, Adesina noted the recent approval of a $117 billion callable capital increase by the Bank’s shareholders. This raises the Bank’s total authorized capital to $318 billion, enhancing its lending capacity and preserving its AAA credit rating.
“We’re going to be bigger, bolder, and better,” Adesina declared, predicting Africa’s rise as a pivotal global region. He highlighted the Bank’s Alliance for Green Infrastructure in Africa (AGIA), supported by a $150 million G7 contribution, aiming to leverage $3 billion in private sector investment for green projects. He also mentioned the $20 billion Desert-to-Power project in the Sahel, set to generate 10,000 megawatts of solar power for nearly 250 million people across 11 countries.
Reflecting on the Bank’s achievements, Adesina mentioned the Bank’s new ten-year strategy (2024-2033), which envisions a prosperous, inclusive, resilient, and integrated Africa. He emphasized the need to invest in Africa’s youth and women, citing the Bank’s efforts in education and skills development, as well as its flagship initiative, Affirmative Finance Action for Women in Africa (AFAWA), which aims to mobilize $5 billion for women-led businesses.
“The trajectory for Africa will be much stronger as we tackle these challenges and improve security while expanding more concessional financing and private sector financing,” Adesina said. He concluded with optimism about Africa’s future: “Africa is critical to the future of the world. It’s a vision Africa deserves, and it’s a vision we’ll achieve.”