AfDB boss, Adesina, identifies cause of Africa’s economic stagnation

The President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has renewed his call for African nations to break free from the cycle of poverty by halting the export of raw materials and embracing industrialisation through value addition.

In a post shared on Thursday via his official X (formerly Twitter) account, Adesina described the continued export of unprocessed commodities as a major contributor to the continent’s economic stagnation.

“Africa must end the exports of its raw materials. 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,” he stated.

Despite being richly endowed with natural resources ranging from oil and gas to rare minerals and agricultural produce, Africa contributes less than 2 per cent to global manufacturing output, according to data from the Office of the United States Trade Representative and other multilateral sources. Its share of global trade also lingers below 3 per cent.

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For Adesina, this is not just an economic failure, but a strategic misstep. Over the years, he has championed policies that prioritise agro-industrialisation, regional integration, and infrastructure development as key levers for sustainable transformation.

The AfDB has been instrumental in backing initiatives like the African Continental Free Trade Area (AfCFTA), aimed at boosting intra-African commerce and promoting industrial growth across the continent.

Beyond industrialisation, Adesina recently raised concerns about the inequitable distribution of international financial support. He criticised the International Monetary Fund’s allocation of Special Drawing Rights (SDRs), which saw Africa receiving just $33 billion, or 4.5 per cent, of the $650 billion issued globally, despite being one of the hardest-hit regions economically during the COVID-19 pandemic.

In response, the AfDB, in collaboration with the African Union, has led efforts to rechannel unused SDRs from wealthier nations to African economies. Through a newly endorsed framework—developed alongside the Inter-American Development Bank (IDB) and approved by the IMF Board—the plan seeks to optimise Africa’s access to global liquidity by leveraging the AfDB’s AAA credit rating.

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