By Sara Camara
Abidjan – Dr. Akinwumi Adesina, President of the African Development Bank Group (AfDB), has issued a strong call to action for African nations to cease the export of raw materials, arguing that this practice is the root cause of the continent’s persistent poverty and underdevelopment. Adesina’s statement, shared via his official X account on Thursday, underscores the urgent need for Africa to transition from a supplier of unprocessed commodities to a producer of value-added goods.
“Africa must end the exports of its raw materials,” Adesina stated unequivocally. “The export of raw materials is the door to poverty. The export of value-added products is the highway to wealth. And Africa is tired of being poor.”
His call comes at a time when Africa accounts for less than 2 percent of global manufacturing, despite possessing a wealth of valuable raw materials. Data from the Office of US Trade Representative and other multilateral institutions highlights this significant disparity. While Africa is home to some of the world’s most sought-after resources, its share of global trade remains under 3%.
Momentum for change is building, however, with initiatives like the African Continental Free Trade Area (AfCFTA) designed to boost intra-African trade, enhance manufacturing capabilities, and encourage value addition across various sectors. Adesina has been a consistent advocate for policies that promote agro-industrialization, energy expansion, and improved infrastructure as the cornerstones of a transformed African economy.
Adesina’s advocacy extends beyond trade. Last week, he criticized the disproportionate allocation of the International Monetary Fund’s Special Drawing Rights (SDRs), revealing that Africa received a mere $33 billion, representing only 4.5 per cent of the $650 billion issued globally. He stressed that this distribution model failed to address the urgent financial needs of African nations, which have suffered significant economic setbacks from the pandemic while possessing limited fiscal capacity for recovery.
To address this imbalance, the AfDB, in partnership with the African Union, has spearheaded efforts to rechannel unused SDRs from wealthier nations to African economies. Leveraging the AfDB’s AAA credit rating, a new framework co-developed with the Inter-American Development Bank (IDB) has now been approved by the IMF Board, paving the way for a more equitable distribution of resources.
Adesina’s consistent message is clear: Africa must move beyond being a source of raw materials and embrace value addition to unlock its economic potential and finally break free from the shackles of poverty.
