The president of the African Development Bank (AfDB), Akinwumi Adesina, has advised African countries to overhaul their development models, embrace investment-led strategies instead of continuing to rely on aid for economic growth.

Mr Adesina gave the advice while delivering a keynote at the 14th Convocation Ceremony of the National Open University of Nigeria (NOUN), on Friday in Abuja.

He said that the era of donor dependency was over and Africa must take charge of its development trajectory.

According to him, the era of free money is gone, benevolence is not an asset class.

“African nations must learn to develop through investment discipline and not by counting aid as revenue,” Mr Adesina said.

The AfDB president identified five critical lessons the continent must internalise, in light of changing global dynamics.

He said that Africa must first adopt fast-paced and disciplined investment approaches, shedding decades of reliance on aid.

Mr Adesina urged countries to ramp up domestic resource mobilisation, not merely through increased taxation, but by enhancing transparency in the management of natural resources.

He said further that the continent must curb corruption, and ensure international corporations paid fair value in royalties and taxes.

“The continent must tackle illicit financial flows and ensure efficient use of its vast natural wealth.

“A fundamental mindset shift is required from aid to trade and investment as the primary driver of development.

“This involves improving business environments, ensuring legal protections for investors, and reducing the cost of doing business,” the AfDB president said.

He encouraged African countries to build capacity for structuring investments into critical national assets, to unlock greater economic value.

Mr Adesina also emphasised the urgency of fully operationalising the African Continental Free Trade Area (AfCFTA), promoting local production and regional trade.

“Africa must end the export of raw materials. That path leads to poverty. The path to wealth lies in value addition,” he said.

Reiterating institutional achievements under his leadership, Mr Adesina said the AfDB’s general capital increased from $93 billion in 2015 to $318 billion in 2024.

He said AfDB, during his time, was twice ranked the most transparent financial institution in the world.

According to him, the African Development Fund, its concessional arm, is now ranked second globally outperforming all OECD bilateral donors.

“With pride, I leave behind a transformed, world-class institution, ready to help Africa navigate a complex global landscape,” Mr Adesina said.

He commended the African Union’s inclusion in the G20 and South Africa hosting the G20 Summit for the first time, calling them “important markers of Africa’s growing voice on the global stage”.

As Mr Adesina prepares to conclude his decade-long tenure later this year, he said that Africa must chart its future through self-reliance, sound policies, and strategic alliances.

The AfDB president said that with vision, political will, and a mindset shift, Africa would not only survive, but thrive in the face of global uncertainties. 

(NAN)