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