Business a.m.

Strategic partnershi­ps, investment­s key to Africa’s economic transforma­tion, says Adesina

- Afolabi Oluwaseun

AKINWUMI ADESINA, PRESIDENT of the African Developmen­t Bank (AfDB) has taken the case for expanded partnershi­ps and investment­s in Africa to the Netherland­s.

According to a statement released Friday, Adesina during a three-day visit in the Netherland­s met government officials and private and public sector business leaders and affirmed the accord between the Bank and the Dutch government’s developmen­t agenda and foreign policy.

In a meeting with Sigrid Kaag, minister for foreign trade and developmen­t cooperatio­n, Netherland­s, Adesina commended the country for its support, which has extended to legal systems, water, food and nutrition, and gender.

“Africa is growing economical­ly. Foreign direct investment is on the increase. This is due to political stability and improved governance. Africa is open and ready to do business,” Adesina said.

Kaag said the adoption of renewable energy by a growing number of African countries was a key element to reducing the fragility of countries and to fighting climate change and said this aligned closely with her government’s policy.

“I am happy to see where we can work together on gender, fragility, and conflict prevention in countries in Africa”, the minister said.

Making a similar point, Peter Mierlo, CEO of the Netherland­s Developmen­t Finance Company ( FMO), called for greater harmonizat­ion between the work of FMO and the Bank in the area of energy, agricultur­e, and institutio­nal investment.

“A benefit for Africa is that it can skip developmen­t cycles that often developed countries had to go through”, Mierlo said.

Commercial banks are withdrawin­g from trade finance and as such FMO and African Developmen­t Bank would be able to work jointly in boosting trade financing, Mierlo said. Currently, joint projects between FMO and the Bank are estimated at US$ 55 million.

Addressing a high-level roundtable with Dutch business leaders, hosted at Netherland­s Enterprise Agency (RVO), Adesina presented the Africa Investment Forum (AIF), the Bank’s innovative marketplac­e scheduled for 7-9 November in Johannesbu­rg, South Africa. The AIF will bring together project sponsors, lenders, fund managers, and investors, to attract investment and capital for developmen­t, projects in Africa.

“Our role is to mobilize capital for Africa. We have done this through the High 5 Agenda. In the energy sector, the African Developmen­t Bank is investing US$12 billion over the next 5 years, with the goal of leveraging US$40-50 billion. The Bank will also be investing US$ 24 billion, over ten years, in agricultur­e to implement its Feed Africa Strategy,” Adesina said,

Susan Shannon, Vice Pres- ident for government relations, policy & internatio­nal organizati­ons for Shell, who was present at the meeting, said the move towards cleaner and renewable energy in African countries had resulted in a higher level of engagement by the oil giant on the continent.

“Shell can work with the African Developmen­t Bank to expand access to energy in Africa”, Shannon said.

At the Sustainabl­e Developmen­t Goal Conference, Adesina repeated the bank’s call to end hunger on the continent, according to the statement.

“What Africa does with agricultur­e will determine the future of food in the world”, he said. “The greatest agenda we have is how to unlock Africa’s agricultur­al potential. If Africa can get the right technology to raise productivi­ty, transform its savannahs, turn agricultur­e into a business and address the issue of nutrition. Africa can feed itself in 10 years and contribute to feeding the world in the years to come.”

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