AfDB Urges UK-African Partnership On Trade
UMORU ABDULKADIR
The President of African Development Bank (AfDB), Akinwumi Adesina, Tuesday urged United Kingdom (UK) investors to partner the continent of Africa on significant trade development.
Adesina spoke at a UK Parliamentary Symposium that was co-organized by the All-Party Parliamentary Group for Africa with the Royal African Society, Oxford Brookes University, and the Trade Justice Network under the theme UK-Africa Trade and Brexit.
He said, “Africa is on the edge of unparalleled economic transformation, and the UK must engage in a “partnership of change “The Africa of the 21st century is very different. The Africa of the 21st century is new and more confident.”
He maintained that Africa and the UK should be significant trading partners even though the reality, shows that the UK’s trade with Africa is trending downwards, from a $49 billion peak in 2012, to fall to $30.6 billion in 2018.
The Bank’s Chief noted that the decline in UK trade and investment in Africa is against a backdrop of projected business-to-business and consumer-to-consumer expenditures of $5.6 trillion by 2020, and a food and agriculture market worth $1 trillion by 2030.
“The fact that we are having this conversation in the UK Parliament is a great start. The convening of this Summit by Prime Minister Boris Johnson is an even greater start,” he acknowledged.
He disclosed that Africa’s investment opportunities, “which speak for themselves.” Trading under the African Continental Free Trade Agreement, a market of more than 1.3 billion people and a gross domestic product of $2.5 trillion, which is the world’s largest free trade area since establishment of the World Trade Organization (WTO), starts in July.
Speaking further, the AfDB President said: “Investing in quality and sustainable infrastructure can spur Africa’s economic transformation.”
He stated that the Bank has been a forerunner in the race to rapidly close the continent’s infrastructure gap, which he suggested be renamed “Africa’s Infrastructure demand opportunity, adding that Investors who tapped early into information and communications technology infrastructure in Africa have seen those investments blossomed.
“Just under two decades ago, Africa had fewer telephones than Manhattan in New York. Today, Africa has over 440 million cell phone subscribers. Returns on digital infrastructure are very high as the continent expands broadband infrastructure to boost connectivity and improve services,” He said.
Adesina noted that the AfDB has been a major investor in infrastructure development in the electricity, transport, and water sectors across Africa through increase in cumulative bank funding for infrastructure on the continent by 22per cent from $66.9 billion in 2016 to $81.6 billion in 2017, adding that, the value of infrastructure projects with private sector participation by the bank has also risen from $3.6 billion to $5.2. Billion during the period in focus.
Speaking on the Bank’s various efforts at funding bankable projects, he stated that the Bank has established several project preparation facilities to address the lack of bankable projects and ensure a robust pipeline of projects, which collectively costs from $30-50 million annually in support for project preparation.
Acknowledging the role of the DFID in Africa’s development, Adesina said’ “The African Development Bank and DFID are collaborating to explore how to better support fragile states, which are facing huge financing needs. DFID has been the Bank’s key strategic partner since it joined the group in 1983. And its “strong and consistent” support for the African Development Fund has helped the Bank work in low-income states, especially the fragile states.”
“Instruments, such as the Private Sector Credit Enhancement Facility, a credit-risk participation vehicle from the African Development Fund, (ADF)’s concessional window to support Non-Sovereign Operations in low-income countries, are showing tremendous results.”
“With $500 million in credit guarantees, provided through ADF, the Bank has leveraged $2.5 billion of financing into fragile states, with a zero default rate.”
“We are committed to quality infrastructure and ensuring that no one is left behind!” Adesina assured.
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