AfDB Says GDP Not Enough to Gauge Economic Success

Dr. Akinwumi Adesina

GDP is insufficient to gauge economic expansion, says AfDB

The African Development Bank (AfDB) President, Dr. Akinwumi Adesina, asserts that in order to guarantee prosperity on the continent, a rise in GDP must result in the creation of jobs for young people.

Speaking on the African Economic Outlook at a presentation on the margins of the current 2024 Annual Meetings in Nairobi, Adesina made this statement.

The president of the AfDB rejected the goal of GDP growth, stating that the significance of growth's quality and effect on job creation cannot be overstated.

“We have to ensure that our growth also gives value to the youth and women. We do not need GDP.

“It does not matter how that GDP is. We have to make sure that it is creating quality jobs for our people,” he said.

Adesina stated that Africa could not afford to have 477 million young people under the age of 35 without opportunity, citing youth unemployment as a major problem.

“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 was enthusiastic about programs aimed at structurally changing agriculture, such as the Special Agricultural Processing Zones and the Youth Entrepreneurship Investment Banks.

Adesina also emphasized how the African Continental Free Trade Area (AfCFTA) may increase trade and industrial production within the continent and lessen reliance on exports to other countries.

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

“Africa's future is bright, but we must tackle governance issues and ensure our resources are fully utilised for the benefit of our people,” Adesina said.

Adesina made several recommendations on financial tactics, including a stronger private sector, more mobilization of domestic resources, and a move away from concessional financing and toward commercial creditors.

He called for increased blended funding to boost Africa's development and thanked governments for their strong backing of the African Development Bank's (AfDB) capital increase, which will help drive growth and progress on the continent.

He asserts that doing this is essential to keeping the bank's triple-A rating and obtaining long-term, low-interest financing for Africa.

Adesina emphasized that accountability, openness, and good governance are critical to Africa's development.

According to him, national capital assets in Africa totaled 6.8 billion dollars in 2018. These assets, if handled well and honestly, might hasten the continent's transformation.

“Africa's future is bright, but we must tackle governance issues and ensure our resources are fully utilised for the benefit of our people,” Adesina said.