Africa must pivot away from aid dependency to ensure fast-paced development, according to African Development Bank Group President Akinwumi Adesina.
Speaking on Friday at the 14th Convocation Ceremony of the National Open University of Nigeria (NOUN) in Abuja, Adesina addressed a pressing challenge: the need for Africa to rise above external assistance and forge its path through self-reliance, strategic partnerships, and effective use of its vast natural resources.
Adesina’s comments come at a time when global funding is shrinking, tariffs are rising, and geopolitical tensions are affecting trade relations.
He made it clear that Africa can no longer rely on aid as a primary source of growth.
He pointed to recent global changes, including the dismantling of the official development aid agency in the US and similar anti-aid measures across Europe, signaling the end of the era of aid and free money for Africa.
“The era of aid or free money is gone. African countries must now learn to develop via investment discipline. Countries can no longer rely on aid for growth or count it as part of government revenue, as has been the case for decades. Benevolence is not an asset class,” Adesina said.
The African Development Bank president stressed the urgency of overhauling Africa’s approach to development.
He specifically highlighted the need for rapid implementation of the African Continental Free Trade Area (AfCFTA), urging African countries to prioritize local production, local buying, and local trading.
“Produce local, buy local, trade more locally,” he declared, emphasizing that this would pave the way for economic prosperity.
Adesina also addressed several challenges facing the continent, such as declining development aid, restrictive immigration policies, and undervalued natural resources.
Yet, he positioned these challenges as opportunities for Africa to redefine its global positioning.
He revealed that the African Development Bank is working on a new framework to re-estimate Africa’s GDP by accurately valuing its natural capital.
This, Adesina said, would help lower Africa’s debt-to-GDP ratio and enable the continent to access more resources to fund its development.
He warned that rising tariffs—especially from the US—would have a significant impact on African economies.
“47 out of 54 African countries have been placed under higher US tariffs. The immediate direct effects of the tariffs on African countries will be a significant reduction in exports and foreign exchange availability. This will send other shock waves through African economies,” he stated.
These tariffs, according to Adesina, will cause local currencies to weaken, inflation to rise, and the cost of servicing debt to increase, as revenues decline and costs for imported goods soar.
However, he insisted that Africa’s resilience must be built not through aid but through self-determination, reliable alliances, and a strong focus on leveraging its resources for sustainable growth.
In line with his vision for Africa’s future, Adesina pointed out the importance of value addition to the continent’s natural resources.
He urged Africa to move away from exporting raw materials and focus on processing and adding value to these resources.
“Africa must end the exports of its raw materials. The export of raw materials is the door to poverty. The export of value-added products is the highway to wealth. And Africa is tired of being poor,” Adesina declared.
The African Development Bank’s initiatives under Adesina’s leadership, including the Africa Financing Stability Mechanism, the African Credit Risk Agency, and the $25 billion African Adaptation Acceleration Program, are steps in this direction.
Adesina also called for greater corporate governance, transparency, and environmental protection in Africa’s mining and mineral sectors.
The Bank is working with the African Union and the Economic Commission for Africa to develop the African Green Minerals Strategy, aimed at ensuring sustainable mineral extraction and protecting communities’ rights.
Another key area Adesina highlighted was investment in youth education and entrepreneurship.
With Africa’s population projected to reach 2.4 billion by 2050, 75% of whom will be under 35, he stressed the importance of aligning education with the demands of the digital economy to equip young people with the skills needed to thrive in the future.
As Adesina nears the end of his second five-year term as president of the African Development Bank in September, he reflected on his legacy, noting significant achievements like the Bank’s capital growth from $93 billion in 2014 to $318 billion today, and its recognition as the most transparent financial institution in the world for two consecutive years.
During the convocation ceremony, Adesina was honored with an honorary doctorate by NOUN, a gesture he dedicated to his late father, Roland F. Adesina, who instilled in him a deep appreciation for education.
Adesina also performed the groundbreaking ceremony for the Regional Training and Research Institute for Distance and Open Learning at NOUN, a project that aims to expand educational opportunities across West Africa.
Adesina’s bold vision for Africa’s future underscores the importance of embracing self-reliance, strategic partnerships, and the full utilization of Africa’s natural resources as the continent moves forward in the face of global challenges.
In his words: “Only then will Africa be great again.”
As Africa shifts its development focus, new startups across the continent are climbing toward unicorn status.
Among these soon-to-be giants are Moniepoint, Chipper Cash, and Halan MTN, each making strides toward reaching the coveted $1B valuation mark and further contributing to Africa’s economic transformation.
