The President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has warned that Africa will face significant challenges in recovering from global shocks as long as it continues to access credit at tougher terms than the rest of the world.
Speaking at the 2023 Kofi Annan Eminent Speaker Lecture Dr. Adesina emphasized the urgent need for fairer lending practices that will enable Africa to thrive amidst uncertain times.
Dr Akinwumi Adesina, the President of the African Development Bank (AfDB), says the wide disparity in accessing financial opportunities means Africa will take time to recover or deal with the continual problems, such as climate change, that require investments in green technology.
“We need to create a world that is equitable and stable, where we bear in mind the needs of others and not only what we need matters,” he said.
“We are all in the same boat. The global development boat is leaking, and the consequences will be devastating if the leakage is not blocked.”
Dr. Adesina pointed out the glaring disparity in credit accessibility and terms between Africa and other regions of the world. While the continent grapples with high interest rates, stringent conditions, and shorter repayment periods, other countries benefit from more favorable lending terms and greater access to flexible financing.
He was joined at lecture by Jim Yong Kim, ex-World Bank President.
Every region may suffer food insecurity, poor governance, insecurity, conflicts, global pandemics, rising debt, and climate change, but Africa has been the most hurt as it is also still developing and imports most of its goods and also, industries are still nascent.
Globally, leaders agree to these obligations. For example, every country must contribute towards keeping global warming manageable by adopting renewable energy and stop extreme hunger that afflicts 2.3 billion people.
“No one must be left behind in access to acceptable health care. All lives matter for the rich and the poor,” he said.
The challenges facing the world is not lack of resources but resources highly concentrated in developed countries with few extremely rich while world developme
“Global financing architecture is failing development in the world as it faces multiple challenges. It needs to be reformed and transformed to tackle global challenges and accelerate achievement of SDGs.
“We must ensure equal opportunities for all regardless of one’s economic, social, and racial background. and must create a global level playing field for just and equitable world.’’
The International communities, he said, have critical roles to change the situation and not, “allowing nearly three billion people almost half of world’s humanity to subsist on $2 or less per day in world of unprecedented wealth”.
