Toba Owojaiye reporting
Abuja, Nigeria
The President of the African Development Bank Group (AfDB), Dr. Akinwumi Adesina, has cautioned against resource-backed debts following Nigeria’s $3 billion crude deal. Despite abundant natural resources totaling over $6.7 trillion, Adesina warns that Nigeria’s failure to feed itself may lead to a $110 billion food import burden in the next two years.
Adesina, speaking at a public lecture marking The Guardian’s 40th Anniversary, emphasized the non-transparency and expense of such debts, which he believes won’t benefit Africa. He called for strategic thinking to combat rising poverty, attributing it to Africa’s reliance on exporting raw materials, deeming it “the door to poverty.”
TruthLive News gathered that the AfDB has invested $8 billion in agriculture, improving food security for 250 million people. However, Adesina notes that over 283 million people still suffer from hunger in Africa. He criticized the export model, pointing out that Africa, contributing 65% to cocoa production, receives only 2% of the $120 billion chocolate industry.
Adesina debunked the myth of a resource curse, citing nations like Saudi Arabia, Qatar, and Norway that effectively manage their natural resources. He stressed the importance of governance, transparency, and accountability for Africa to escape poverty.
Highlighting Africa’s vast renewable energy potential, especially in critical metals, Adesina urged strategic positioning in the emerging electric vehicle market. With projections indicating a 500% increase in demand for cobalt, graphite, and lithium, he urged Africa to move beyond mere exportation of minerals and develop value chains.
Addressing poverty, Adesina rejected “poverty alleviation” in favor of a quantum leap in per capita GDP. He emphasized that Africa, with 70% of global platinum reserves, must transform its green metals into wealth by building industrial capabilities. Adesina urged Nigeria to lead an industrial revolution, emphasizing that industrialization is the fastest path to wealth.
Concerns were raised about Africa’s growing debt levels, with Sub-Saharan Africa’s debt ratio reaching 60% of total GDP in 2022. Adesina urged the continent to mobilize financing for development while highlighting the impact of climate change, causing $7-15 billion in yearly losses.
Adesina emphasized the need for universal electricity access to combat Africa’s reputation as the “dark continent.” Despite growth in renewable energy, Africa only received 2% of the $3 trillion global investments in the sector over the past two decades.
In conclusion, Adesina’s comprehensive analysis calls for a strategic shift in Africa’s economic approach, moving from resource-backed debts to sustainable industrialization and value addition, ultimately breaking free from the shackles of poverty.