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AFRICA’S private sector will continue to lead the continent towards economic transformation, the African Development Bank president said while imploring the continent to beneficiate its mineral resources to insulate itself from fluctuations of global prices. Addressing about 500 chief executives from 43 African countries, Mr Akinwumi Adesina said “the ‘Africa rising’ story remains strong” despite prevailing economic challenges.“Yes, African economies face economic headwinds from the significant decline in the price of commodities…but African economies remain resilient,” said Mr Adesina.
“While the global economy is projected…to grow at 3 percent this year, Africa is projected to grow at 4,4 percent in 2016, and to (further) accelerate to 5 percent in 2017.”
He set out a vision of what African governments must do to allow the private sector reaching its optimum potential. These include stabilization of macroeconomic environment and fiscal consolidation, broadening the tax base, and deepening domestic capital markets. In addition, he said, governments needed to continue addressing infrastructure deficits, break down barriers to regional integration, and fast-track key reforms.
Mr Adesina applauded efforts by Africa countries to deepen financial integration and increase liquidity, citing an AfDB project to link four African stock exchanges, and a joint venture with Bloomberg to facilitate the issuance of sovereign and corporate bonds on African markets.
With a huge natural resource base, Mr Adesna said Africa could finance its development and this would enable the continent to decide its own direction and pace of growth.
“The formula for the wealth of nations is clear,” he said. “Rich nations add value by transforming raw materials into finished goods, while poor nations merely export their raw natural commodities. Africa only accounts for 1,9 percent of global added value in manufacturing.” He called on the private sector to lead in doubling efforts to beneficiate African commodities locally, diversifying African economies, particularly into areas like services and tourism. The private sector accounts for 80 percent of total production, 90 percent of employment, and two-thirds of total investments.
“In the face of global economic challenges, it is those African countries with diversified economies that are succeeding in weathering the economic storm. While the current situation is challenging, it also presents great opportunity, especially for resource-rich countries, to diversify their economies away from the export of raw commodities….Now is the time, the time for Africa to move up the value chain,” he said.
Mr Adesina concluded by setting out the vision of the African Development Bank going forward, enshrined in its ‘High 5’ priorities which focus and refresh its current 2013-2022 Ten Year Strategy.
He set out the context and goals for each of the High 5s: ‘Light up and power Africa’; ‘Feed Africa’; ‘Industrialize Africa’; ‘Integrate Africa’; and ‘Improve the quality of life for the people of Africa’.
“We will only succeed in realizing the objectives of the High 5s if we work in public-private partnership,” said Adesina. “Let us think big, act big and deliver big for Africa.”
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