The African Development Bank (AfDB) has urged African nations to develop and implement homegrown strategies to tackle the continent’s economic challenges and drive structural transformation.
In an interview with the News Agency of Nigeria (NAN), AfDB Vice-President for Economic Governance and Knowledge Management, Prof. Kevin Urama, stressed the need for self-reliance in addressing Africa’s economic issues. Despite billions of dollars in investments from international organizations like the World Bank and AfDB, Prof. Urama pointed out that poverty levels remain high, and the desired structural transformation is yet to materialize across the continent.
Urama, who also serves as AfDB’s Chief Economist, highlighted several pressing challenges facing Africa, including inflation, currency volatility, debt sustainability, and food and energy insecurity. He explained that the global economic system often works to the disadvantage of African economies, reinforcing the need for a reevaluation of Africa’s dependence on external solutions.
“Africa must focus on what it can do internally to address its challenges and create sustainable growth,” Urama emphasized. He called for policies that prioritize adding value to Africa’s abundant natural resources locally, rather than continuing the practice of exporting raw materials, a legacy of the continent’s colonial past.
To drive industrialization, Urama advocated for local content policies, franchising, and preferential procurement strategies that would attract capital and foster the growth of industries within Africa.
He pointed to the example of the Republic of Congo, where establishing a precursor factory for lithium-ion batteries is three times cheaper than in the United States, thanks to Africa’s access to the raw materials.
“This not only reduces logistics costs but also helps cut down on carbon emissions,” Urama said, illustrating the economic and environmental advantages of local industrial development.
Prof. Urama underscored the importance of industrialization in creating jobs, fostering technological innovation, and providing substantial economic benefits, both for Africa and international investors. By prioritizing internal solutions and industrial development, Africa could unlock a new era of sustainable growth and transformation.