AfDB’s Adesina says GDP doesn’t reflect Africa’s true economic potential

• Recommends broader approach to measuring economic success

Onome Amuge

Akinwumi Adesina, president of the African Development Bank (AfDB) has underlined the urgent need to align increased gross domestic product (GDP) growth with job opportunities for young Africans, stressing that this is fundamental to achieving sustainable economic growth on the continent.

Speaking at the African Economic Outlook presentation on the sidelines of the 2024 Annual Meetings in Nairobi, Adesina took aim at the singular focus on GDP as a measure of economic growth. He warned against the simplistic pursuit of GDP growth and instead, stressed the importance of taking into account the quality and impact of growth on job creation, particularly for young people and women.

The AfDB president highlighted the dire situation of youth unemployment in Africa, calling for urgent action to provide opportunities for the continent’s young people. He further underscored the urgent need to create pathways to economic empowerment for Africa’s youth, warning that the continent’s future hangs in the balance, with over 477 million young people under the age of 35 currently lacking opportunities.

“I have said it: Migration to Europe is not Europe’s problem. It is our problem. We cannot have 477 million young people under the age of 35 and have nothing for them.

”We must invest in our young people, in their skills, talents, entrepreneurship, and give them tools,” he said.

Citing concrete measures to tackle youth unemployment and enhance Africa’s economic growth, the AfDB president expressed his support for initiatives like the Youth Entrepreneurship Investment Banks and the Special Agricultural Processing Zones. Adesina outlined how these projects could spur transformation in Africa’s agricultural sector, creating jobs and promoting structural change. Moreover, he pointed out the potential of the African Continental Free Trade Area (AfCFTA) to boost Africa’s intra-continental trade, driving the growth of industries and reducing dependency on international exports.

Addressing the economic and financial strategies that could help unleash Africa’s potential, Adesina put forward several key recommendations. He emphasised the need for African countries to prioritise domestic resource mobilisation, stimulate the private sector, and shift their focus away from commercial creditors and towards concessional finance. He also underlined the importance of blended funds for the accelerated development of the continent.

“Trading among ourselves in a free trade zone must be backed by industrial manufacturing to avoid being competitively poor.

“We need consolidated infrastructure for export-oriented industrial manufacturing to increase our manufacturing share of GDP,” he said.

Adesina underscored the pivotal role of good governance in driving Africa’s growth and development.He also emphasised the importance of transparency, accountability, and effective management of resources, noting that Africa’s national capital assets of 6.8 billion dollars, if managed effectively, could catalyse the continent’s transformation.