1 week ago
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By Uche Usim
President, African Development Bank (AfDB), Dr Akinwunmi Adesina has said that Africa should wean itself off over-dependence on aid to a sustainable development model built on concessional financing, domestic resource mobilisation and strategic investments.
Speaking on Arise TV on Monday, Adesina asserted that Africa cannot beg its way to prosperity and must embrace financing models that support long-term economic growth.
“I don’t believe Africa should beg its way to development. Africa can be supported, but development must be done with pride. You must be able to say, ‘I’m better than this. I do this for my own pride, for my own people,’” he said.
Concessional financing, which offers lower interest rates, extended repayment periods, and flexible terms, is a more viable alternative to aid, Adesina explained. While he acknowledged that low-income and fragile states might require external assistance, he stressed that sustainable progress depends on mobilizing domestic resources and securing concessional financing.
“If a baby is born and fed on milk, a time comes when that baby must eat solid food, start eating meat, and grow up. The same applies to countries. For true development, nations must access concessional financing—not aid—and leverage their institutional capital to drive growth.”
Responding to concerns over U.S. trade policies under President Donald Trump, Adesina dismissed fears, stating that Africa’s economic strength lies in its youth, natural resources, and industrial potential.
“Why should I be worried when Africa has 477 million young people under the age of 35, brimming with talent, entrepreneurship, and skills? Why should I be worried when we hold the largest renewable energy resources in the world? Why should I be worried when Africa is central to the global energy transition?”
He emphasised Africa’s strategic role in the future of electric vehicles and renewable energy, given its vast reserves of lithium, cobalt, platinum, and other critical minerals essential for global industries.
“The lithium-ion battery market alone will be worth $7 trillion by 2030, and by 2050, the electric vehicle market will reach $59 trillion. The real question is: How does Africa position itself? Instead of exporting raw materials, we must invest in manufacturing and industrialisation. Selling raw materials makes us vulnerable to tariffs and trade barriers, but producing high-value goods—like semiconductors—makes Africa indispensable.”
On governance, Adesina cautioned against generalising Africa’s challenges, noting that many countries are making significant economic progress. However, he stressed the importance of accountable leadership, emphasizing that governments must prioritize infrastructure, human capital, and economic stability.
He also criticised ineffective youth empowerment programmes, calling for direct investments in young entrepreneurs.
“We must equip our young people with skills and jobs. We must hold ourselves accountable for their future. The solution is not migrationAfrica must provide opportunities at home.”
Reflecting on the growing trend of young Nigerians leaving the country in search of better opportunities, known as ‘Japa’, Adesina described it as a market failure that must be addressed.
“All our young people are leaving, and as AfDB President, that makes me ashamed. We must change that. That’s why we are launching Youth Entrepreneurship Investment Banks, a game-changer in providing capital for young businesses.”
The AfDB has already set plans in motion to address this issue. On June 25, 2023, Adesina announced the bank’s readiness to establish a Youth Entrepreneurship Investment Bank in Nigeria. By October 18, 2024, the AfDB had approved $100 million for its establishment. The bank will support youth-led businesses through technical assistance, business incubation, quasi-equity, and debt financing. Additionally, it will deploy guarantee instruments to de-risk lending by Nigerian financial institutions.
For Adesina, Africa must move beyond aid dependency and take control of its economic destiny. With the right policies and investments, the continent can achieve financial independence, drive industrialization, and emerge as a global leader in energy, technology, and manufacturing.
English (US) ·