So the economies of Africa are doing very well and whats evenmore amazing is

So the economies of africa are doing very well and

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“So the economies of Africa are doing very well and what’s even more amazing is that 37 countries are growing at three to five percent or above. Today, as we speak, 20 African countries are growing at above five percent globally. And that is amazing. You cannot ignore Africa,” Adesina elaborates. While foreign direct investment (FDI) for the rest of the world grew at -13%, and the FDI for developed countries grew at -23%, FDI in Africa grew by roughly 11%, from $41 billion to $46 billion in 2018. Says Adesina: “So that tells you how fast Africa is growing. And more exciting for me is the African Continental Free Trade Area agreement which now opens up Africa with a market of $3.3 trillion. “Take, for example, the moment we start supporting people to invest across borders and you make it easier for people to travel, guess what? Investment will begin to expand. If I want to take, for example, between 2013 and last year, and even this year, the intra-Africa investment, that is African investors investing in other African countries, rose to $108 billion total. And you look at that and ask yourself what are the countries where most of those investments are coming from; almost 40% of that is from South Africa into other countries. The other countries are Egypt, Nigeria, Morocco and Kenya.” Adesina advises to look beyond trading in the same things through the African Continental Free Trade Area (AfCFTA): “So as opposed to sending raw materials that dominate Africa’s exports to Europe or to America, or to China, if we start trading among ourselves, we should not be trading in raw materials, we should be trading in high value- added products. “And so, we at the African Development Bank will support the development and the emergence of original, globally competitive value chains, whether it is agriculture, whether it is the pharmaceutical industry, whether it is in other areas of ICT where Africa can be competitive and so at the end of the day, it is about added value to everything that Africa has, because as I always say, the secret of the wealth of nations is very clear. Those nations that have wealth are the ones that export value-added products. The ones that are poor are the ones that export raw materials and I think Africa is done exporting raw materials. Africa cannot be used to poverty; it needs wealth.
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DECEMBER 2019 – JANUARY 2020 FORBES AFRICA | 33 FORBES AFRICA COVER STORY AKINWUMI ADESINA FORBESAFRICA.COM “Those nations that have wealth are the ones that export value-added products. The ones that are poor are the ones that export raw materials and I think Africa is done exporting raw materials. Africa cannot be used to poverty; it needs wealth,” Adesina says. In order to take advantage of the collective market of $3.3 trillion the AfCFTA is opening up, it is important to invest in basic enabling conditions.
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  • Spring '11
  • Mohammad
  • The Land, FORBES AFRICA

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