Latest news with #AfDB
Zawya
17 hours ago
- Business
- Zawya
AfDB projects Nigeria's GDP growth to moderate to 3.2% in 2025
The African Development Bank (AfDB) has projected Nigeria's real Gross Domestic Product (GDP) growth to moderate to 3.2 percent in 2025 and 3.1 percent in 2026, down from 3.4 percent in 2024, largely due to persistent structural bottlenecks and heightened global uncertainty. The AfDB urged Nigeria to adopt a more strategic and coordinated approach to capital mobilisation as the country advances its economic reform agenda. This is contained in the recently launched 2025 Nigeria Country Focus Report (CFR), titled 'Making Nigeria's Capital Work Better for Its Development'. The report highlights the urgent need to improve how Nigeria mobilises, manages, and invests all forms of capital: fiscal, financial, human, natural, and business capital to accelerate structural transformation and foster inclusive growth. The launch comes amid Nigeria's bold economic reforms, including the removal of fuel subsidies, unification of exchange rates, and tax reforms. These measures reflect the government's commitment to long-term macroeconomic stability and self-reliant development. 'Despite this momentum, the report projects that real GDP growth will moderate to 3.2 percent in 2025 and 3.1 percent in 2026, down from 3.4 percent in 2024, largely due to persistent structural bottlenecks and heightened global uncertainty,' the AfDB said. In his opening remarks, Dr Abdul Kamara, Director General for Nigeria at the African Development Bank, emphasised the significance of this moment for the country's development agenda. He said, 'This report is both timely and practical. Nigeria is demonstrating bold leadership through difficult but necessary reforms. Its capital is more than financial; it includes human, natural, and institutional assets. What this report shows is the need for integrated strategies that make every form of capital work together to drive inclusive and sustainable transformation.' Prominent among the report's findings is the urgent need to enhance domestic resource mobilisation to close Nigeria's annual development financing gap of USD 31.5 billion. While tax reforms and non-oil revenue expansion are beginning to yield results, the informal sector remains large, tax compliance low, and the tax-to-GDP ratio among the lowest in the region. Mr Olufemi Olarinde, Head of Fiscal and Tax Reforms Implementation Division at the Federal Inland Revenue Service (FIRS), officially launched the report on behalf of the Federal Government, noting its relevance to Nigeria's current fiscal trajectory. He said, 'We appreciate the efforts of the African Development Bank in contributing to this important report, which reflects our ongoing work in fiscal and tax reforms. It accurately captures both the strides we are making and the challenges we face as we strengthen Nigeria's public finance system.' To meet development goals, the CFR recommends broadening the tax base, improving compliance, reducing tax expenditures, and investing in the institutional capacity of revenue-generating agencies, while ensuring public spending is both efficient and impactful. The report also highlights governance constraints as key obstacles to effective capital mobilisation; fragmented oversight, overlapping mandates, and limited institutional coordination continue to undermine public trust and investment confidence. In this context, Dr Jacob Oduor, Lead Economist for West Africa at the African Development Bank, emphasised that policy tools like market-based exchange rate systems can support Nigeria's economic resilience but only when backed by credible institutions and disciplined macroeconomic management. Reinforcing this, Peter Engbo Rasmussen, Country Economist for Nigeria, noted: 'Nigeria's commitment to fiscal reform is crucial to building a resilient economy. The CFR reveals that strengthening non-oil revenue and improving public financial management will not only reduce reliance on volatile oil markets but also provide the fiscal space needed to invest in people and infrastructure.' Beyond fiscal policy, the CFR aligns with private-sector perspectives. Dr Joseph Ogebe, Head of Research and Development at the Nigeria Economic Summit Group (NESG), echoed the report's attention to inflationary pressure and the role of productivity. He said, 'The CFR's findings resonate with our position at NESG. Price stability remains a pressing concern, with inflation disproportionately affecting micro and medium-sized businesses. We continue to advocate for a productivity-led deflation strategy and recommend a growth-with-depth approach that prioritises sustainable economic expansion over reliance on borrowing.' The 2025 Nigeria Country Focus Report is part of the Bank's annual analytical series that mirrors the African Economic Outlook at the country level. These reports offer localised, evidence-based analysis tailored to national priorities and are designed to support reform implementation, policy dialogue, and development planning across the Bank's Regional Member Countries. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Zawya
4 days ago
- Business
- Zawya
African leaders urge United States (U.S.) to embrace investment-driven partnerships and review tariffs
African leaders have called on Monday for an urgent review of U.S. tariffs on African exports, urging a shift towards transformative partnerships and investment in Africa's economic potential. Addressing more than 2,000 government and business leaders, and other delegates at the U.S.-Africa business summit in the capital Luanda, Angolan President João Lourenço said: 'It is time to replace the logic of aid with the logic of investment and trade.' He urged U.S. companies to diversify beyond traditional oil and mineral extraction and invest in sectors such as automotive manufacturing, shipbuilding, tourism, cement production, and steel production. African Union Commission Chairperson Mahmoud Ali Youssouf, added, 'We're not seeking aid, but building co-created solutions.' He called for the removal of punitive tariffs and visa restrictions, noting that Africa's 1.3 billion people and abundant resources remain among the world's most significant untapped economic opportunities. 'This should not just be a summit, but a call to action. Together, let's walk the pathways to prosperity—with unity, purpose, and Agenda 2063 as our guide,' he told the summit. In his remarks, African Development Bank Group President Dr. Akinwumi Adesina said, 'We should review the high tariffs on African countries. What is needed is more trade between Africa and the U.S., not less.' African Continental Free Trade Area (AfCFTA) Secretary General Wamkele Mene reinforced Africa's integration agenda, highlighting the importance of open regional markets. 'The undertaking of the AfCFTA is an ambitious one—It has to be ambitious,' Mene said. He emphasized that the success of AfCFTA is essential to scale investment, reduce fragmentation, and accelerate industrial development across the continent. From rhetoric to action: Building real partnerships The central message was clear: the era of aid dependency is over, and the time for transformative investment partnerships has arrived. The leaders called for bold, strategic investments to unlock Africa's trillion-dollar potential. Responding to the call for deeper engagement, U.S. officials acknowledged Africa's growing economic importance and the need to reset perceptions. Senior State Department Bureau Official Troy Fitrell said, 'There are business leaders in the U.S. who need to understand the opportunities that lie in doing business with Africa. Our mission going forward will be to find them—and bring them in.' The U.S.-Africa Business Summit promotes economic cooperation and investment between the United States and Africa with a focus on fostering sustainable and inclusive economic growth. By bringing together leaders from government, business, and civil society, the summit provides a platform to discuss key issues and opportunities in the U.S.–Africa relations, ultimately driving growth and development on both sides. Adesina pointed to the Lobito corridor as a concrete example of strategic investment already underway. 'That is why the African Development Bank is a key strategic partner with the U.S., Angola, and Zambia on the development of the Lobito corridor,' he said. This critical corridor will link the vast areas of Zambia and the Democratic Republic of the Congo to the port of Angola, improving mineral supplies, unlocking agricultural potential, and creating jobs. The African Development Fund, the soft loan arm of the Bank Group, will be providing $500 million in support of the development of the Lobito Corridor. Additionally, the African Development Bank will provide $1 billion over five years for complementary investments around the corridor, including agricultural value chains, roads, and energy infrastructure. Act on the data, not perceptions The Bank President went further: 'As we build transport corridors, let us also build strategic partnership corridors. Strategic partnerships that prioritize capital investments in infrastructure, agriculture, minerals industrialization, and development of digital infrastructure, as well as capital markets.' He charged U.S. investors: 'Act on the data, not perceptions. Think Africa. Think opportunities. Think competition. From the U.S. International Development Finance Corporation to the Export-Import Bank of the United States, as well as institutional investors and capital allocations, invest in Africa. Let's make America and Africa great again.' Corporate Council on Africa President Florie Liser challenged summit delegates to embrace true partnership: 'Beyond deals, let's strive for lasting transformation.' As part of the opening ceremony of the Summit, the Corporate Council on Africa honored Dr. Adesina with its Distinguished Economic Leadership Award, recognizing his significant contributions to Africa's transformation. Council Deputy Chairman, Mr. Jean Raymond Boulle, conferred the award, describing how the African Development Bank has impacted millions of Africans under Adesina's leadership, while transforming the Bank to a world-class institution and a partner of choice. Akinwumi Adesina, who will complete his second and final five-year term as President of the African Development Bank Group on 31 August, has led for the past decade transformative projects across Africa under the Bank's five strategic priorities, the 'High 5s'. They have positively impacted the lives of more than 565 million people on the continent. Speaking at a high-level event hosted by Africa50, a pioneering infrastructure investment platform dedicated to accelerating project development and delivery across Africa, Adesina emphasized the urgent need to scale local financing solutions—especially in local currencies—to mitigate forex volatility, reduce risk mismatches, and enhance the bankability and stability of infrastructure projects for global investors. The event, titled 'Unlocking Capital for Africa's Infrastructure through Innovative Finance,' featured a high-level panel discussion on asset recycling, moderated by CNN's Richard Quest, with insights from Alain Ebobissé, CEO of Africa50; Brook Taye, Director General of Ethiopia Investment Holdings; and Armando Manuel, Chairman of Fundo Soberano de Angola. Together, they explored how innovative models, such as asset recycling, can unlock capital and accelerate infrastructure development across Africa. Alain Ebobissé stated that the asset recycling model has been successfully implemented in many countries worldwide. 'In implementing this initiative in Africa, we are pursuing three objectives. First, monetizing assets—ensuring that, instead of owning only a bridge, you receive cash that you can reinvest in your assets. Second, improving the efficiency of the asset by bringing in first-class operators to help us manage those assets. Third, and most importantly, we aim to bring pension funds and other investors interested in cash flow-generating assets to finance these projects,' Ebobissé explained. Adesina said over the past decade, the African Development Bank Group has invested over $55 billion in infrastructure, including regional projects, making the Bank the largest financier of infrastructure in Africa. The African Development Bank established Africa50 as a private equity infrastructure platform, comprising a project development company and a project finance company, to support the development of infrastructure with market-rate returns. Africa's missing share of a $2.9 trillion opportunity The Bank President informed the audience that, in the past eight years since its establishment, Africa50 has invested in a portfolio of infrastructure projects worth over $8 billion. 'But more is needed, especially from private sector investors,' stated Adesina. 'Africa should be well positioned to attract some of the $2.9 trillion global green bonds. However, the continent represents less than 1% of global green bond issuance. Because most of Africa's infrastructure is yet to be built, this represents a huge opportunity for green bond issuances to build green infrastructure, reduce carbon emissions, and build climate resilience.' The African Development Bank launched the Alliance for Green Infrastructure in Africa (AGIA) to mobilize $500 million for project preparation and development, as well as $10 billion for green infrastructure investments. Africa50 is the General Partner for the AGIA-Project Development Fund, with several Limited Partners, including the G7 countries. To mitigate risks at scale across Africa, the African Development Bank is establishing the Africa Risk Mitigation Agency, which will consolidate all banks' guarantee instruments into a single entity. The entity will support guarantees for equity risk, climate risk, refinancing risk, and political risk. He emphasized that Africa50 is also pioneering asset recycling, enabling governments to recover their investment in infrastructure by transferring brownfield assets to the private sector. This can help to reduce debt burdens and provide liquidity for governments. 'The Senegambia bridge, which the African Development Bank financed with $104 million, was the first to be used for the asset recycling program. It worked successfully, as Gambia received $104 million it spent back through Africa50,' he added. 'Following this, several asset recycling initiatives are being proposed for many infrastructure projects financed for governments by the African Development Bank Group.' The renewed momentum for U.S.-Africa business partnerships received strong political backing, with the participation of seven Heads of State, several Prime Ministers, and leaders of key regional organizations. Attending dignitaries included Presidents Denis Sassou Nguesso (Republic of the Congo), Faustin-Archange Touadéra (Central African Republic), Félix Antoine Tshisekedi Tshilombo (Democratic Republic of the Congo), Taye Aske Selassie (Ethiopia), Duma Gideon Boko (Botswana), Netumbo Nandi-Ndaitwah (Namibia), and Brice Clotaire Oligui Nguema (Gabon); Prime Ministers Gervais Ndirakobuca (Burundi), Robert Beugré Mambé (Côte d'Ivoire), Russell Mmiso Dlamini (Eswatini), Manuel Osa Nsue Nsua (Equatorial Guinea), Christian Louis Ntsay (Madagascar), and Deputy Prime Minister Nthomeng Justina Majara (Lesotho); as well as Mahamoud Ali Youssouf, Chairperson of the African Union Commission, Ambassador Gilberto Da Piedade Verissimo, Chairperson of the Economic Community of Central African States, and Elias M. Magosi, Executive Secretary of the Southern African Development Community. Distributed by APO Group on behalf of African Development Bank Group (AfDB). About the African Development Bank Group: The African Development Bank Group is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information:
Zawya
4 days ago
- Business
- Zawya
Adesina spotlights African Development Bank's role in delivering Mattei Plan and Global Gateway investments across Africa to drive industrial growth
African Development Bank Group ( President Dr. Akinwumi Adesina has reaffirmed the Bank's central role in advancing Africa's connectivity, industrialization, and regional integration through strategic investments aligned with Italy's Mattei Plan and the European Union's Global Gateway initiative. Speaking at the joint Mattei Plan–Global Gateway Summit ( held in Rome on Friday 20 June, Adesina emphasized the progress made by the African Development Bank in turning strategic priorities into action—from infrastructure and energy to digital connectivity and value chains. He called for greater alignment between partners and accelerated delivery on the ground, noting that the Bank's investments are already helping reshape regional trade and economic resilience. He underscored for instance the Bank's catalytic role in the Lobito Corridor, with $1 billion committed over five years for value chain development and urban infrastructure. He also mentioned the development of the Tanzania–DRC–Burundi railway network, where the Bank is helping mobilize a $3.9 billion package alongside international partners. These efforts, he noted, reflect a coherent strategy to transform Africa's economic geography through inclusive, green growth Stretching from the Atlantic port of Lobito in Angola to the heart of the continent, the Lobito Corridor is a vital route for moving minerals, goods and people across Angola, Zambia, and the Democratic Republic of Congo—unlocking huge trade and industrial opportunities for landlocked countries. These developments were highlighted as international partners gathered to align efforts around new cooperation frameworks—the European Union's Global Gateway ( and Italy's recent Mattei Plan ( aim to deepen investment with Africa in energy, agriculture, infrastructure, and digital innovation. Adesina reaffirmed the Bank's role as a key implementing partner for both initiatives. The Mattei Plan, launched by Italy in 2024, is designed to foster equal partnerships with African countries, with a focus on strategic sectors including energy, agriculture, and migration. The Global Gateway, the EU's €300 billion investment strategy, similarly targets infrastructure development worldwide, with €150 billion earmarked for Africa. A cornerstone of this implementation is the operationalization of the Rome Process/Mattei Plan Financing Facility, which is a dedicated mechanism hosted by the Bank to accelerate climate-resilient infrastructure projects. The Facility's inaugural Governing Council has already met and approved an initial pipeline of operations across energy, water, and transport sectors. 'We have established a Special Fund, and its inaugural Governing Council has already met to begin evaluating projects, including the Lobito Corridor ( Adesina said. Underscoring the Bank's leadership, he noted that Africa's premier development finance institution has invested more than $55 billion in infrastructure over the past decade, making it the largest financier of regional transport corridors in Africa. European Commission President Ursula von der Leyen reaffirmed the EU's long-term commitment: 'Global Gateway is an investment agenda that combines public and private capital... Africa is a continent of abundance—what's missing is connectivity.' Italian Prime Minister Giorgia Meloni added: 'These are not top-down initiatives, but concrete projects shaped through dialogue and a shared desire for lasting development. The approach Italy has implemented is clear: respect, responsibility, vision.' A key pillar of this transformation, Adesina noted, is energy access. He highlighted Mission 300, the joint African Development Bank—World Bank initiative to connect 300 million Africans to electricity and announced ongoing negotiations for a €165 million package with the European Commission to scale up renewable energy under the program. Adesina urged donors to support a robust 17th replenishment of the Bank Group's soft loan arm for low-income countries -- the African Development Fund – scheduled for this year, to sustain the momentum of the Mattei Plan and Global Gateway. He concluded: 'Together, let us do more with Africa.' In a related development, the African Development Bank has signed a Letter of Intent with the Government of Zambia to advance the development of the Lobito Corridor, a transformative regional transport initiative connecting Southern and Central Africa. The project entails the construction of approximately 550 km of railway from Chingola in Zambia's Copperbelt to the Angolan border, as well as the upgrading of 260 km of road between Chisese and Jimbe via Mwinilunga. The initiative builds on a broader Memorandum of Understanding between the Bank, Zambia, Angola, the Democratic Republic of Congo, and international partners including the United States, the European Commission, Italy, and the Africa Finance Corporation. It aims to strengthen regional trade, improve transport infrastructure, and drive economic integration across the region. Distributed by APO Group on behalf of African Development Bank Group (AfDB). About the African Development Bank Group: The African Development Bank Group (AfDB) is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 44 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states.
Business Insider
6 days ago
- Business
- Business Insider
Top 10 African countries with the strongest energy regulation frameworks
The African Development Bank has released the 2024 edition of its Electricity Regulatory Index (ERI), confirming significant progress among African countries in strengthening the regulatory frameworks governing their electricity sectors. Business Insider Africa presents the African countries with the strongest energy regulation frameworks in 2024 The ranking is courtesy the AfDB's 2024 Electricity Regulatory Index (ERI), Senegal ranks highest in the 2024 index due to successful reforms and enhanced transparency, followed by Kenya and Uganda. This year's ERI results reflect not just the adoption of laws and policies, but the tangible implementation of reforms by various African countries, leading to stronger and more autonomous regulatory institutions. Since its launch in 2018, the ERI has served as a diagnostic and policy support tool designed to help governments, regulators, and development partners identify regulatory gaps, monitor progress, and prioritize reform efforts. The 2024 edition draws on extensive feedback from national utilities, energy regulators, and regional electricity bodies. It evaluates countries across three core pillars: Regulatory Governance, Regulatory Substance, and Regulatory Outcomes, each measuring a specific dimension of how well a country's regulatory framework supports transparency, efficiency, accountability, and long-term investment. According to the Bank, the latest results confirm that African electricity regulators are evolving. Once seen primarily as administrative arms of government, many have grown into strategic institutions with measurable influence on energy policy and market performance. Countries are beginning to move from commitment to delivery. Wale Shonibare, Director for Energy Financial Solutions, Policy and Regulation at the Bank Group, described the 2024 index as telling a 'hopeful story,' adding that regulators across the continent are beginning to show results. ' African countries are not just passing laws, they are implementing them. Regulators are transforming from administrative bodies into strategic institutions with measurable influence, ' he said. Top 10 Countries in the 2024 ERI The full list of the top ten performers based on their ERI scores is presented below: Rank Country ERI Score Governance (RGI) Substance (RSI) Outcomes (ROI) 1 Senegal 0.892 0.927 0.949 0.848 2 Kenya 0.889 0.926 0.941 0.837 3 Uganda 0.885 0.963 0.988 0.745 4 Namibia 0.875 0.871 0.883 0.870 5 Tanzania 0.858 0.899 0.888 0.786 6 Zimbabwe 0.848 0.869 0.946 0.730 7 Rwanda 0.826 0.916 0.952 0.610 8 Benin 0.807 0.887 0.849 0.687 9 Liberia 0.803 0.849 0.866 0.694 10 Niger 0.799 0.881 0.746 0.770 Senegal tops the 2024 Electricity Regulatory Index for the first time with a score of 0.892, driven by recent reforms and the 2021 creation of the CRSE, which boosted regulatory independence and transparency. Kenya ranks second at 0.889, thanks to EPRA's efforts in tariff reform and investor confidence. Uganda, the long-time leader, drops to third with 0.885, still leading in governance and substance, but affected by a decline in outcomes due to stalled power agreements expected to resume in 2025.
Zawya
20-06-2025
- Business
- Zawya
Togo: African Development Bank strengthens partnership with civil society
The African Development Bank ( held its first-ever Civil Society Open Day in Lomé, Togo, on 3 June. The event brought together representatives from the Togolese government, around 30 national and international civil society organisations (CSOs), and Bank staff — all committed to strengthening development partnerships in Togo. The key personalities at the event all emphasised this shared vision. Opening the event, Stéphane Akaya, Secretary General of Togo's Ministry of Economy and Finance, stressed the importance of civil society: "This open day with the African Development Bank reaffirms our joint commitment to inclusive and transparent progress. We are seeking to strengthen a tripartite partnership, where civil society is engaged from conception through to evaluation in order to ensure effective, people-centred development." Seconding Mr Akaya's point, Wilfrid Abiola, Head of the Togo Country Office of AfDB Group, said: "The African Development Bank Group remains committed to strengthening collaboration with Togolese civil society, which is a key player in sustainable development.' The CSO Open Day in Lomé aimed to strengthen collaboration between the Bank and civil society by sharing information on the Bank's development operations and projects in Togo. It also sought to encourage dialogue on the role of CSOs throughout the project cycle — from planning and preparation to implementation, supervision, and completion. "We are keen to strengthen our partnership with civil society organisations in Togo, encouraging open dialogue and promoting their full participation in the projects that we support," Zeneb Touré, Head of the AfDB's Civil Society and Community Engagement Division, said. Minemba Traore, Senior Civil Society Officer for West Africa at the Bank Group, shared information on the institution's engagement with CSOs, while Ndey Oley Cole, Senior Programme Officer in the AfDB's Gender, Women and Civil Society Department, presented a summary of the exchanges. Key outcomes and next steps from the discussions included: Greater involvement of civil society: CSOs will be included in all phases of development projects. Creation of a formal dialogue platform: The Bank, government, and CSOs will work together to establish a permanent forum for ongoing consultation. Capacity building for CSOs: Training will be provided in project monitoring and evaluation, proposal writing, and market access strategies. Improved communication: The Bank will share information on its activities in Togo in a more dynamic and accessible way, better meeting the needs of partners and the public. Promotion of social inclusion and diversity: Efforts will be made to ensure greater participation of young people and women in development initiatives. Development of a detailed action plan: Concrete deliverables and clear deadlines will guide follow-up and ensure effective implementation of commitments. The Open Day laid the foundations for closer partnerships, which can provide spaces for exchange, consultation and collaboration between the Bank, CSOs and other stakeholders in Togo. Such an approach will enable the AfDB to better understand local priorities, discuss partnership opportunities and receive input from civil society on the projects that it finances in Togo. The initiative is aligned with the Bank Group's Civil Society Engagement Action Plan 2024-2028, which was approved last year. Under Pillar 3 of this action plan, particular attention will be paid to strengthening dialogue with civil society organisations in the countries where the Bank works. Holding of civil society open days in regional member countries of the Bank is a key mechanism for operationalising this commitment. Distributed by APO Group on behalf of African Development Bank Group (AfDB). Link to photo album:
