Development: Nigeria, South Africa, Others Need $700bn Yearly

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  • Development: Nigeria, South Africa, Others Need $700bn Yearly

The African Development Bank (AfDB) has revealed that Nigeria, South Africa, Kenya and other African countries need at least $700 billion yearly to achieve Sustainable Development Goals (SDGs).

Speaking at the maiden Africa Investment Forum (AIF) held in Johannesburg, South Africa, the bank said the continent needs between $130 billion to $170 billion annually to address infrastructure deficit.

The Sustainable Development Goals, also known as Global Goals for Sustainable Development, are a collection of 17 global goals of the United Nations, set by the United Nations General Assembly (UNGA) in 2015, which serves as a road map to achieving a better future for all.

The SDG, has a 2030 timeline and addresses social and economic global challenges like; poverty, education, hunger, gender equality, sanitation, global warming, water, social justice, environment, urbanization, health and energy.

Dr Akinwumi Adesina, the President of the AfDA, while addressing delegates at the Forum, said commitments to infrastructure on the continent declined to $62.5 billion in 2016.

Breaking down interests, he said West Africa received $16.3 billion interests, East Africa $13.1 and North Africa $12.9 billion interest.

Speaking on the mining sector, Adesina noted the lean attention being given to the extractives sector, adding: ‘’In 2015-2016, FDIs in Africa were mainly targeted at the services sector (66 per cent) and the manufacturing sector (21 per cent), while the extractives sector only got 11 per cent.”

‘’The major components of capital inflows in Sub-Saharan Africa were FDIs and foreign aid (averagely 3.36 per cent and 3.35 per cent of GDP in 2000 to 2017) while remittances accounted for 2.26 per cent of GDP.’’ he added.

Adesina, who further emphasized on the need for effective regulatory policies, called for cooporation among African regulators to enhance development and bridge gap between Africa and the rest of the world.

Also, speaking at the Forum is Dr Bandar Hajjar, the President of the Islamic Development Bank, urged African governments to void infrastructure gaps, poor governance, instabilities and unfavourable policies, in order to create an enabling environment that will open Africa to the world.

Prof. Benedict Oramah, the President of Africa Export-Import Bank, called on Sub-Saharan Africa to collectively create a market for investors.

Admassu Tadesse, the President of Trade and Development Bank, speaking on the slow decision-making process by governments, suggested that they adopt the strategies of scale up, speed up and synergize.

Again, Acha Leke, the Chairman of Mckinsey Africa, called for action in the areas of infrastructure, industrialisation, agriculture, energy and social welfare.

Africa’s development needs are fertile ground for broad-based collaborations between governments, private sector and multilateral development banks.

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