AfDB calls on African private sector to fund Africa's growth
The institution wants to develop public/private partnerships.The African Development Bank (AfDB) has called on the private sector to multiply efforts to diversify African economies.
"In the face of global economic challenges, it is those African countries with diversified economies that are succeeding in weathering the economic storm. While the current situation is challenging, it also presents great opportunity, especially for resource-rich countries, to diversify their economies away from the export of raw commodities," said AfDB president Akinwumi Adesina on Monday, March 21 at the launch of the fourth Africa CEO Forum in Abidjan.
He urged the private sector to step up and fund Africa's growth through partnerships with the public sector.
Meanwhile, he called on governments to work to allow the private sector to reach its maximum potential, including ensuring macroeconomic stabilisation and fiscal consolidation, broadening the tax base, and deepening domestic capital markets.
Mr Adesina added that governments need to continue to address infrastructure deficits, break down barriers to regional integration, and fast-track key reforms.
Describing efforts to deepen financial integration and increase liquidity, he cited an AfDB project to link four African stock exchanges, and a joint venture with Bloomberg to facilitate the issuance of sovereign and corporate bonds on African markets.
He also pointed to a growth in remittances and a rise in sovereign wealth funds in Africa. "With all these resources, Africa can finance its own development, and doing so enables it to decide its own direction and pace of growth," he concluded.