Keypoints:
- Adesina says Africa must end aid dependency
- Calls for trade-led growth and resource value-addition
- AfDB developing GDP model based on natural capital
AFRICAN Development Bank (AfDB) President Akinwumi Adesina has issued a stark call for African nations to break free from decades of aid dependency and drive growth through investment, self-reliance, and value-added trade.
Speaking at the 14th Convocation Ceremony of the National Open University of Nigeria (NOUN) on Friday, Adesina warned that changing global dynamics, including donor fatigue and rising geopolitical tensions, demand a complete overhaul of Africa’s development model.
In a keynote lecture titled Advancing Africa’s Positioning within Global Development and Geopolitical Dynamics, the AfDB chief said: ‘The era of aid or free money is gone. African countries must now develop via investment discipline. Benevolence is not an asset class.’
Adesina pointed to the recent shutdown of development aid agencies in the US and restrictive policies in Europe as clear signals that Africa can no longer count on external generosity.
Global shifts demand local strategy
The AfDB president outlined a roadmap for building resilient African economies amid rising tariffs, climate shocks, and reduced foreign funding. He urged governments to focus on domestic production, regional trade, and the full implementation of the African Continental Free Trade Area (AfCFTA).
‘Produce local, buy local, trade more locally,’ Adesina charged, adding that Africa must shift from exporting raw materials to value-added goods to maximise returns and create jobs.
He also raised alarms over global tariff hikes, especially from the United States, which now affect 47 out of 54 African countries. These, he warned, could trigger export declines, foreign exchange shortages, weaker currencies, rising inflation, and higher debt servicing costs.
‘Africa must chart its future, relying not on the benevolence of others but on its own determination for self-reliance, while building reliable alliances and putting Africa first,’ he told the audience.
Natural capital could boost Africa’s credit
Adesina revealed that the AfDB is developing a new framework to revalue African countries’ GDP by factoring in natural capital—forests, minerals, biodiversity, and other green wealth. This, he said, could significantly reduce debt-to-GDP ratios and improve the continent’s borrowing capacity and credit ratings.
‘Africa’s natural capital is grossly undervalued. Re-estimating our wealth could unlock financial resources and redefine our global economic standing,’ he explained.
New tools for resilience and stability
Under Adesina’s leadership, the AfDB has launched several flagship initiatives to bolster Africa’s economic resilience. These include:
- Africa financing Stability Mechanism – to help countries manage and refinance debt
- Security-Indexed Investment Bonds – to rebuild conflict-affected areas
- African Credit Risk Agency – to assess Africa’s investment risk fairly
- African Green Minerals Strategy – to support environmentally sound mineral development
- African Adaptation Acceleration Programme – a $25bn effort for climate resilience
End to raw exports: the path to wealth
Adesina emphasised that Africa must stop exporting raw materials and instead develop processing industries that keep value within the continent. He cautioned against falling prey to the global rush for critical minerals without adequate protection of local communities and environments.
‘The export of raw materials is the door to poverty. The export of value-added products is the highway to wealth. And Africa is tired of being poor,’ he said.
The AfDB is working with the African Union and the Economic Commission for Africa to roll out the African Green Minerals Strategy, which will promote governance, transparency, and community rights in mineral extraction.
Youth, education and legacy
Highlighting Africa’s demographic power, with 75 percent of its population under 35, Adesina urged more investment in digital skills and entrepreneurial education. He called for modernised curricula and infrastructure to prepare the continent’s youth for a tech-driven future.
The convocation ceremony also marked the groundbreaking of a new Regional Training and Research Institute for Distance and Open Learning at NOUN. The centre, a flagship for open learning in West Africa, aims to expand access to quality education.
NOUN Vice-Chancellor Prof Olufemi Peters said Adesina was chosen for the lecture due to his outstanding global influence and dedication to Africa’s transformation.
As he nears the end of his second term at the Bank in September, Adesina reflected on a legacy of institutional growth, noting the AfDB’s capital increase from $93bn in 2014 to $318bn, and the Bank’s back-to-back ranking as the world’s most transparent financial institution.
He is set to receive an honorary doctorate from NOUN, which he is dedicating to his late father, Roland F. Adesina, for inspiring his pursuit of education.
NOUN’s role in inclusive education
With over 600,000 students enrolled across more than 2,000 courses, NOUN is Africa’s largest and the world’s second largest open university. Its mission aligns closely with Adesina’s vision of inclusive, tech-enabled education as a driver of national and continental growth.
