Participants at the 2024 Afreximbank annual general meeting in Nassau, Bahamas, have called for significant investment in infrastructure and stronger institutions to enable Africa’s full participation in the global economy.
According to experts, Africa, comprising 17 per cent of the world’s population but commanding just 4 per cent of global GDP and a mere 2 per cent of world manufacturing output, continues to undermine the continent’s ability to capture a larger share of the global marketplace and participate efficiently in the global value chain.
Specifically, former Vice Chair,Federal Reserve, USA, Dr Roger Ferguson, said Africa’s growth rate must accelerate such that it would deliver what China and the Southeast Asian tigers have done.
According to him, Africa’s vast infrastructure deficit has continued to constrain its growth, as infrastructure development plays a pivotal role in enabling economic growth, fostering social progress, and driving sustainable development.
However, he stated that the challenges posed a greater opportunity for the continent to embrace more efficient technologies.
He pointed out that technologies have numerous potential benefits, especially in the areas of support for healthcare delivery services and promotion of access to education, noting that the only way to realise these benefits is through investment in infrastructure.
Ferguson also stressed the need for Africans to step up investment in the manufacturing sector and funding for local production.
He said, “Africans need to have a payment system that can work effectively, step up manufacturing, develop infrastructure, fund investment in local production, save to have independence and increase trade and investment within the continent.”
Also speaking, former Vice President, Yemi Osinbajo, stressed the need for Nigeria and Africa to translate their huge economic potential into reality.
According to him, Africa needs to find ways of dealing with local issues and tackling myriad problems within the continent.
He said, “The global challenges are not the problem, it’s getting things done in our own environment and the easiest way of doing that is to encourage the private sector. Dangote refinery speaks to the fact that the private sector is mature and can attract cheap capital for investment.”
Senior Executive Vice President, Afreximbank, Denys Denya said there is a need for Africans to recognise its structural deficiencies, especially in the areas of infrastructure and ensure that it strengthens its institution to boost industrialization and shared prosperity.
According to him, heightening geopolitical tension, underpinned by trade and investment wars has continued to undermine the growth aspirations of developing nations, especially in Africa.
“The quest for sustainable development has become a perennial struggle. It is in this context of sustained deprivation that we need to unify our voices to achieve global Africa dream.
“Deepening trade and investment flow will promote interconnection and our capacity to withstand global shock. We must aspire to change the economic fortunes of this continent through effective utilisation of our resources.”