Investments key to Africa’s economic transformation

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Akinwumi Adesina, 2017 World Food Prize Laureate and African Development Bank (AfDB) President has taken the case for expanded partnerships and investments in Africa to the Netherlands. On a three-day visit this week, he met with government officials and private and public sector business leaders and affirmed the accord between the Bank and the Dutch government’s development agendas and foreign policy.

At a meeting with Sigrid A.M. Kaag, Minister for Foreign Trade and Development Cooperation, in the Hague, on 29 August, Adesina spoke about investing in Africa and commended the Netherlands for its support, which has extended to legal systems, water, food and nutrition, and gender. He also congratulated the government for its Development Policy, which emphasizes global fragility, gender and climate.

“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,” said Adesina.

Kaag said the adoption of renewable energy by a growing number of African countries was a key element to reducing 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 van Mierlo, Chief Executive Officer 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. President Adesina met with him and other officials, the same day.

“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), on 29 August, 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 mobilise 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 $24 billion, over ten years, in agriculture to implement its Feed Africa Strategy,” said Adesina.

Susan Shannon, Vice President for Government Relations, Policy & International Organisations 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.

On 30 August in Wageningen, at the Sustainable Development Goal Conference, Adesina repeated the Bank’s call to end hunger on the continent.

“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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Zweli Sikhakhane is a Web Developer, Digital Marketing Manager and Contributor at BizNis Africa. Sikhakhane began his Digital career at AVATAR Agency, them moved to Maverick Minds, a digital agency based in Johannesburg CBD. Sikhakhane moved to Red Quarter, a digital marketing and events agency Sikhakhane is a highly motivated and enthusiastic professional and a team player who would like to grow grow in the digital industry.

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