AFDB boss, Adesina, identifies the causes of African economic stagnation

African Development Bank President (AFDB), Dr. Akinwumi Adesina, has renewed her call so that African countries freed themselves from the poverty cycle by stopping exports of raw materials and embracing industrialization through the addition of values.

In a post that was shared on Thursday through its official account X (previously Twitter), Adesina described the ongoing export of commodities that had not been processed as the main contributor to the economic stagnation of the continent.

“Africa must end the export of raw materials. Exports of raw materials are doors to poverty. Exports of added value products are the highway to wealth. And Africa is tired of being poor,” he said.

Although rich in natural resources ranging from oil and gas to rare minerals and agricultural products, Africa contributes less than 2 percent to global manufacturing output, according to data from the United States trade representative office and other multilateral sources. The global trade department is also attached to below 3 percent.

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For Adesina, this is not only economic failure, but a strategic step error. Over the years, he has been fighting for policies that prioritize agro-industrialization, regional integration, and infrastructure development as the main lever for sustainable transformation.

AFDB has played a role in supporting initiatives such as the African Continental Free Trade Area (AFCFTA), which aims to increase intra-African trade and promote industrial growth throughout the continent.

Outside of industrialization, the new Adesina has caused concerns about the distribution of unfair international financial support. He criticized the allocation of Special Drawing Rights (SDRS) of International Monetary Funds, which made Africa only receive $ 33 billion, or 4.5 percent, from $ 650 billion issued globally, despite being one of the hardest regions economically during Pandemic Covid-19.

In response, AFDB, in collaboration with the African Union, has led efforts to recharge SDR that is not used from rich countries to the African economy. Through a newly supported framework of being developed together with the Inter-American Development Bank (IDB) and approved by the IMF-plan council, trying to optimize African access to global liquidity by utilizing AAA AFDB credit ratings.

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