Nigeria benefits as AfDB sets $1.3 trillion annual target for Africa’s development
The African Development Bank (AfDB) has stated that African countries need $1.3 trillion annually to experience sustainable development by 2030.
This was buttressed in its statement published on the AfDB website on Friday.
The statement is coming amid AfDB’s announcement of an investment of $1.44 billion in Nigeria.
The investment, disclosed by AfDB at the Investment Summit 2024, between May 15 and 16 in Lafia, is aimed at developing energy and power, transport, water, and sanitation infrastructure in Nigeria.
2030 target
AfDB revealed on Friday that Africa is loaded with immense economic potential requiring sustained financial investments by relevant institutions.
It seized the moment to call for more inclusive financial assistance from relevant stakeholders to enable Africa to attain its economic potential.
The statement partly reads,
“Africa needs $1.3 trillion annually to meet its sustainable development needs by the end of this decade in 2030.
“For this to happen, Dr Adesina argues that Africa needs a more responsive, inclusive and accountable international financial system to support the acceleration of global development.”
Africa’s economic potential
The bank explained that Africa’s Gross Domestic Product (GDP) is estimated at $2.5 trillion but data from some financial institutions in 2023 did not take into account the continent’s significant wealth in natural resource capital which is estimated at $6.2 trillion.
Besides, the bank added that more than half the world’s uncultivated arable land resides in Africa, along with 20% of the world’s tropical rain forests, its fertile savannahs, woodlands, peat lands and mangroves.
It stressed that beneath the surface lies Africa’s vast mineral wealth.
“In addition to substantial resources of gold, Africa has 80% of the world’s platinum deposits, 77% of cobalt, 51% of manganese, 46% of diamonds, 40 % of nickel, 39% of chromium and substantial deposits of lithium to manufacture batteries and tap into the growing market for electric vehicles,” the statement added.
The bank lamented that these natural assets in Africa are grossly undervalued, and at worst, they are largely ignored when Africa’s GDP is calculated.
More insights
– The bank was established 60 years ago to play a leading role in supporting the transformation of the continent, financially.
– It is currently headed by Dr Akinwumi Adesina, a Nigerian and Nigeria has been a major beneficiary of the bank’s financial services.
– Nairametrics previously quoted the AfDB stating that its funding for development projects in Nigeria is worth around $4.4 billion.
– Stakeholders in the African Development Bank Group will be having an Annual Meeting in Nairobi to brainstorm on the bank’s successes as a catalyst for Africa’s transformation.
