Categories: Investment

AfDB Reiterates Infrastructural Needs For Sustainable Growth

  • AfDB Reiterates Infrastructural Needs For Sustainable Growth

The imperatives of infrastructure development for sustainable growth of African economies have continued to dominate discussions of the African Development Bank (AfDB).

The regional development institution raised the issue again on the second day of the Korea-Africa Economic Cooperation Conference (KOAFEC) in Seoul, South Korea, while discussing the transformation of Africa’s agriculture.

AfDB President, Akinwumi Adesina, while addressing Ministers of Finance from African countries, highlighted the importance of investing in rural infrastructure, as well as rapidly developing the agro-industrial sector.

“Africa should not be a consumption centre. It must export processed cocoa, not cocoa beans; it must export specialized coffee, not coffee beans; and it must export finished textile products, not cotton lint,” he said.

Citing Korea’s experience, which was once a poor and at the same level with Sub-Saharan Africa (SSA), but now records a Gross Domestic Product that is currently 17 times that of SSA, he said its growth was an outcome of economic reform.

He said that the policies drove structural transformation and investment in various sectors, including agriculture and now Korea is among the top 15 economies globally, as well as is in the top ranks of major international aid donors.

“Korea’s transformation could not have been achieved without its focus on agricultural transformation, through its popular village model ‘Saemaul Undong’”, he said.

According to him, the approach increased agricultural productivity to achieve food self-sufficiency through massive support for technologies that escalated production, huge investments in rural infrastructure, rural electrification and rural telecommunications. “This is what formed the country’s stepping stone for industrialisation.”

Korea however, reiterated its commitment to aiding Africa especially through knowledge sharing of its development model.

The Deputy Prime Minister, who is also the Minister of State and Finance, Yoo Il-ho, said: “We are a true partner of Africa and we will contribute to the development of Africa. We must work together towards a brighter future for the African continent.”

But the Acting Executive Director of the Green Climate Fund, Janvier Manzanares, noted that asistance to Africa’s agriculture sector should also target helping farmers to adapt to climate change for positive results.

He underscored the importance of mainstreaming climate change in agriculture systems and highlighted his organization’s efforts to support smallholder farmers within the sub-region by strengthening their resilience to the effects of climate change.

Kenya’s Cabinet Secretary for Water and Irrigation, Eugene Wamalwa, also stressed that the erratic weather patterns that have resulted in short rainy spells and frequent drought require a shift from dependency on rain.

“Most of Africa’s agriculture is rain-fed. There is an urgent need to move from rain-fed agriculture to irrigation agriculture, and this requires heavy investment in water infrastructure,” he said.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Share
Published by
Samed Olukoya

Recent Posts

Tolaram Group Drives Guinness Nigeria to First Profit in Six Months Post-Takeover

Guinness Nigeria Plc has reported a pre-tax profit of N20.1 billion for the second quarter…

27 minutes ago

FirstBank’s FirstGem: Redefining Women’s Empowerment in Nigeria

The story of women’s contribution to Nigeria’s economy is as old as the nation itself. …

55 minutes ago

UBA to host Knowledge Series Webinar on New Tax Regime for SME’s

Africa’s Global Bank, United Bank for Africa (UBA) Plc, is set to host a Knowledge…

1 hour ago

Moniepoint Partners With Visa to Expand Financial Services for African Businesses

Moniepoint Inc., a leading financial platform in Nigeria, has announced a partnership with Visa, a…

4 hours ago

Ecobank and CrediCorp Launch Affordable Loan Programme for Salary Earners

Ecobank Nigeria, in partnership with the Nigerian Consumer Credit Corporation (CrediCorp), has unveiled an innovative…

5 hours ago

Wema Bank Completes N40 Billion First Tranche, Eyes N200 Billion Final Capital Raise

Wema Bank Plc has announced plans to complete its capital raise with a combination of…

6 hours ago