Nigeria, South Africa, Kenya and other African nations need $700 billion yearly to achieve the Sustainable Development Goals (SDGs).
The information was revealed yesterday at the maiden Africa Investment Forum (AIF) organised by the African Development Bank (AfDB) in Johannesburg, South Africa.
Besides, it was also disclosed that between $130 and $170 billion was needed yearly to address the continent’s infrastructure deficit
The SDGs are United Nations (UN) blueprint for a better future for all. They address global challenges that relate to poverty, inequality, climate, environmental degradation, prosperity, peace and justice. The goals have a 2030 timeline.
The President of AfDB, Dr. Akinwumi Adesina, while addressing the over 500 delegates from the continent and beyond, noted that commitments to infrastructure declined to $62.5 billion in 2016.
According to him, West Africa received $16.3 billion interests followed by the East with $13.1 billion and the North’s $12.9 billion.
He observed that the extractives sector was being starved of investments, adding: ‘’In 2015-2016, FDIs in Africa were mainly targeted at the services sector (66 per cent) and the manufacturing sector (21 per cent), while the extractives sector only got 11 per cent.”
Adesina added: ‘’The major components of capital inflows in Sub-Saharan Africa were FDIs and foreign aid (averagely 3.36 per cent and 3.35 per cent of GDP in 2000 to 2017) while remittances accounted for 2.26 per cent of GDP.’’
The AfDB boss, who harped on effective regulatory policies, sought collaboration among African governments to bridge the increasing development gaps between the continent and the rest of the world.
The host and Premier of Gauteng Province, David Makhura, pointed out that Africa could not compete favourably without sustainable policies.
To bridge the infrastructure gaps, he said governments must fix public institutions, improve ease of doing business strategies as well as showcase the continent’s strengths.
In his remarks, the President of Islamic Development Bank, Dr. Bandar Hajjar, urged administrations to create an enabling environment that would open Africa to the world.
He noted that besides increasing infrastructure gaps, other ‘’challenges facing member countries are tremendous, including poor governance, unfavourable policies and instabilities.’’
The President, of Africa Export-Import Bank, Prof. Benedict Oramah, challenged Sub-Saharan Africa to come out of colonialisation this year.
To realise this, he said the continent must collectively create a market for investors.
Against the backdrop of slow decision-making by governments, the President of Trade and Development Bank, Admassu Tadesse, advised them to adopt three strategies – scale up, speed up and synergise. He stressed that this would make the continent to do things more efficiently.
The Chairman of Mckinsey Africa, Acha Leke, urged action on infrastructure, agriculture, industrialisation, energy and social.