The African Development Bank (AfDB) has emphasized the need for consistent economic growth in Africa to eradicate poverty and achieve high-income status.
Dr. Akinwumi Adesina, the Group President of AfDB during the 2023 AfDB Annual Meetings in Sharm El Sheikh, Egypt stated that all 54 African countries should strive for a sustained seven percent growth rate over the next 40-50 years.
This ambitious goal aligns with the United Nations Sustainable Development Goals and the 2023 African Union agenda, aiming to improve living standards and promote inclusive growth.
Dr. Adesina acknowledged the challenges that lie ahead but emphasized that achieving this objective is not impossible for the continent.
He highlighted the decline in Africa’s average gross domestic product (GDP) growth, from 4.8 percent in 2021 to 3.8 percent in 2022.
However, he expressed optimism for a projected increase to 4 percent in 2023 and further acceleration to 4.3 percent in 2024.
He cautioned against setbacks experienced by some countries after significant growth periods, emphasizing the importance of sustained progress.
The African continent faces various challenges, including the impacts of COVID-19, conflicts, and climate change, which have exposed vulnerabilities and highlighted the fragility of Africa’s growth pillars, particularly its dependence on commodity exports and external finance.
Despite these challenges, Dr. Adesina emphasized the incredible potential and opportunities that Africa possesses.
He stressed the significance of Africa’s demographic shift, which presents a demographic dividend and a large labor force that can support industrialization and reduce production costs.
Investing in the continent’s young population by providing them with skills and opportunities is crucial for driving Africa’s progress.
Dr. Adesina highlighted the game-changing potential of the Africa Continental Free Trade Area, which can significantly increase intra-African trade and reduce imports from outside the continent.
He encouraged African economies to harness the continent’s abundant natural resources to generate returns, drive youth employment, and foster job creation.
While emphasizing the importance of sustained economic growth, Dr. Adesina also highlighted the need to address issues of governance, inequality, and poverty.
He stressed the responsibility to promote green and sustainable development, diversify growth sources, and champion the fight against climate change and environmental sustainability.
In conclusion, Dr. Adesina emphasized that the studies presented during the event serve as a vital roadmap for Africa’s future. He expressed eagerness to receive the final report, which will be shared with heads of state and governments.
He emphasized the importance of feedback and input in shaping Africa’s unique development path, one that balances economic, social, and environmental dimensions while respecting the continent’s diverse environments, institutions, and aspirations.