African Businesses, Consumer Expenditure To Hit $5.6tn in Five Years
The African Development Bank (AfDB) has stated that the size of businesses and consumer expenditures in Africa is expected to rise to $5.6 trillion in five years.
The Development Finance Institution (DFI) stated in a statement also that the size of the food and agriculture business alone will reach $1 trillion in just ten years, pointing out that in the wake of the African Continental Free Trade Area, the size of the economies will be $3.3 trillion.
The President, AFDB, Akinwumi Adesina, at the 8th African Leadership Persons of the Year Award Investiture in Johannesburg, said Africa of the 21st century is keenly aware of its place in the world and determined to be a global investment haven.
“The Africa of the 21st century is open for trade. Savvy investors know that if you’re not in Africa, you’re not in business,” he said.
He said Africa is where the focus of the world is right now as the growth and investment frontier, stating that last year at the same investment forum in Johannesburg, Africa welcomed over 2,200 delegates from more than one hundred countries.
He pointed out that within 72 hours AfDB secured investment interests for deals worth a whopping $40.1 billion.
He said considering the pace of change driven by the 4thindustrial revolution, Africa must invest in re-directing and re-skilling its labour force.
“We must and we will prepare young people for the jobs of the future — not the jobs of the past. That is why the African Development Bank, as part of our Jobs for Youth in Africa strategy, launched the establishment of Coding for Employment Program. It’s designed to foster young digital entrepreneurs. We hope to develop 130 centres of innovation over the next five years to help create 9 million direct and indirect jobs,” he stated.
He said in 2019, the Board of Governors of the African Development Bank boosted its capital base from $93 billion to $208 billion — a $115 billion increase of capital which represents the biggest increase ever since the establishment of the Bank.
He disclosed that its donors committed $7.6 billion to the African Development Fund to help Africa’s poorest and most fragile countries on the road to recovery.
“An important vote of confidence. But more important is what we do with the money. Our goal has been and always will be to transform Africa through investments that make a difference for those who need it most. We are a bank that invests in people. People are our core business. Their quality of life is our greatest return,” he assured.
He said going forward, there is a need to address issues of insecurity, stressing that growth in West Africa has been dampened by the rising insecurity challenges, especially in the Sahel where several countries in West Africa are spending a very high share of their budgets on security.
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