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‘Corruption is Not An African Issue’, AfDB President, Adesina Speaks to The Guardian

Published

10 months ago

October 13, 2023

Eric

Africa holds the future workforce for the ageing economies of the west, according to one of the continent’s leading financial figures, who also said it was time to ditch the myths around corruption and risk.

In an exclusive interview before this weekend’s World Bank meetings in Morocco, Akinwumi Adesina said there was a resurgence of belief in Africa’s economic prospects and attacked negative stereotyping, adding that there was “every reason to be optimistic”.

Now midway through his second five-year term as president of the African Development Bank (AfDB), the Nigerian former agriculture minister said the continent’s demographic advantage, expanding middle class, and vast investment opportunities meant a shift was under way.

“And not before time – we’re tired of being at the bottom of the value chain,” Adesina said. “The fastest way to poverty is through exporting raw materials, but the highway to wealth is through global value chains by adding value to everything you have, from oil to gas to minerals to metals and food. We must add value.

Established in 1964, the AfDB is Africa’s only AAA-rated financial institution, focused on what Adesina said were his “high fives”: enabling universal access to electricity, improving quality of life, industrialising, food self-sufficiency, and integrating the continent’s 54 countries to create larger and more efficient markets.

“I don’t think that you can have development with pride unless you can feed yourself,” he said.

He said the record-breaking amounts attracted from international investors in the past few years pointed to a renewed trust in the bank’s ability to fast-track development across Africa, particularly in the 37 low-income countries.

“The 81 shareholders of the bank provided us with an increase in the bank’s capital at the end of 2019, from $93bn to $208bn [£76bn to £171bn] – the highest capital increase in the bank’s history. That was timely because little could we have imagined that we were going to move into the world of Covid.

“So that increase allowed us very quickly to do an emergency support facility of $10bn in Covid crisis response for Africa and to immediately respond when the global food crisis was coming from the Russia’s war in Ukraine. We launched a $1.5bn emergency food-production facility to mitigate that global geopolitical crisis leading to a food crisis in Africa.”

But he does want the international financial systems to be structured fairer, so that African nations have as equal access as the developed nations to reserves and liquidity. Adesina will be taking his call for equity to this weekend’s World Bank summit.

“What is very important for us is the issue of the special drawing rights. Africa needs to have a lot more resources for financing climate, but what is actually out there it’s not enough. We have on the table right now the special drawing rights of the IMF. But when they were issued, US$650 billion were issued, Africa got US$33 billion. It’s 4.5%, it’s not good. You have small countries in Europe that got more and that is not fair and not inclusive.” With 190 member states in the IMF, Africa’s 54 countries should have been closer to receiving 25% of the special drawing rights.

“African heads of state are asking for US$100 billion to be re channelled from the countries that got it and don’t use it, or need it,” Adesina said, and he believes this could be key to real progress.

“We might think of maybe just adjusting it a little bit. And calling it supporting development revitalisation. That’s also SDRs.”

Corruption, he said, is actually less in Africa than other parts of the world. “The global financial crisis that brought the world down in 2008 – that was not in Africa,” he said. “We have no Wall Street.

“That collapse came from greed, from corruption, from fraud.

“You have people cooking the books that are in the financial industry in Europe, not in Africa. Corruption is not an African issue.

“The issue is, that’s not to say that there’s none. What you have to do is to continue to improve transparency, accountability and the use of public resources.

“I just came back from Eritrea. I hear a lot of things about Eritrea but my first time there and I was talking to UN Development Programme staff. You know what they told me? That, in Eritrea, corruption is 0%. Why do we not talk about that? That’s the kind of thing that we want to do. For us as a development bank, we take good governance very, very seriously.

“As far as I am concerned, people’s resources do not belong in other people’s pockets. Governments must be accountable to their people. There has to be transparency in how the resources are acquired and used. That’s why we have a governance programme. When you get money from us, we also support you technically. You are accounting for those resources.

“I don’t want to minimise that Africa has a significant amount of illicit capital flows; it does – anything between $80bn and $100bn a year. But guess what? Those that are doing that are the multinational companies. And so what we have got to do is bring a searchlight to that.”

However, the biggest challenge lay in the climate crisis, he said. “Africa today is losing $7bn to $15bn a year from climate change. And that’s going to rise to $50bn a year by 2030. Yet it receives only 3% of the global climate finance.”

The African climate summit in Nairobi last month was a “great success”, he said.

“For the first time, African countries got together to say we’re not going to talk about climate issues individually; we’re putting forward African issues collectively. That itself was a success.

“I made a case at the summit that Africa’s wealth should be revalued based on the value of its natural capital; if you did that, these countries that are currently rich in natural capital, but are cash poor, will become richer. Many people think the largest carbon lung in the world is the Amazon. But it is the Congo basin forest. Now, if Africa is providing this global good, why is it not accounted for in its GDP?

“I’m an eternal optimist – they call me Africa’s optimist-in-chief – because look at the numbers: Africa’s population is going to be 1.72 billion by 2030. Seven years from now. That’s larger than China, larger than India. 477 million of those are young people, between 15 and 35. That’s a skilled workforce; that would be the labour, a workforce for the world.

“I can go into any country you have in Europe, or in Japan, and it’s a rapidly ageing workforce and they are looking for people. A skilled African population would be able to supply that. And when they do that, guess what: they put a lot of remittances back into the continent. So Africa is part of the solution of the lack of skills in the global labour market.”

He said renewable energy and agriculture were also growth opportunities. “Africa has 60% of the world’s solar power. That is an $100bn investment opportunity for Africa to become able to light up itself, but also to harness a renewable energy and reduce global emissions.

“Take food: the ability to feed the world by 2050 will not depend on the US or China, Japan or Europe, because 65% of the arable land left uncultivated in the world is in Africa. So what Africa then does with agriculture and how we all invest in agriculture will determine the future of food in the world.

“Also, take a look at other opportunities that Africa has: mobile money services, financial services – there’s tremendous growth. If you look at the number of people using mobile phones in Africa: 650 million. That is larger than the US and Europe together, and when you look at the financial services – whether mobile phone or e-health, insurance, digital payments – a revolution has happened in Africa.

“You have $701bn just from digital payments in the world – 70% of digital payments in the world happening in Africa.

“I go out and I see young people in the fintech industry that are leading today globally. So, my optimism, it’s realistic.

“Take a look at electric vehicles. Guess what: the metals for all of that are in Africa. Africa has 80% of the world supply of platinum, 50% of copper, 40% of manganese. Huge amount of lithium all about.

“We want to have investors globally investing. We have to make sure the governance environment is right, that incentives are right.

“Don’t just believe what I say, believe what the data says. Bloomberg did an analysis of the default rates on infrastructure globally over the past 14 years, around the world. Guess what they found: Africa’s default rate is the lowest in the world – 2.1%. Eastern Europe: well over 10%. Asia: well over 8%.

“We’re doing everything we can to make sure investments can land in Africa, like a plane on a smooth landing strip.”

Culled from The Guardian – Story by Kenneth Mohammed

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Beware of ‘Full Blown Dictatorship, Dele Momodu Cautions Tinubu in New Letter

Published

16 hours ago

July 26, 2024

Eric

By Eric Elezuo

Chairman, Ovation Media Group, Chief Dele Momodu, has again written an open letter to President Bola Tinubu, cautioning him against metamorphosis into full blown dictatorship.

As usual, Chief Momodu took the instrumentality of his social media handles to send his message to Tinubu, which is coming barely two after he wrote him the first letter bordering on the need to curtail his spendthrift attitude and embrace empowerment of Nigeria’s teeming youths.

In the letter titled Once Again, An Appeal to President Tinubu, Momodu outlined their days in the struggle for democracy against the military government, wondering why someone, like Tinubu, who had congregated and protested in the past, will turnaround today to say there will be no protest.

Momodu further blamed Tinubu for the present hardship in the country, accusing him of not knowing the difference between running Lagos as governor and running Nigeria as president.

“And let me be frank Sir. You caused it all. You did not realise that a country is much more complicated than a State,” he said, further accusing of having a stranglehold on Lagos for 24 years since he became governor in 1999.

Momodu advised that the proposed protest should be seen as a litmus test for the security agencies, especially as the Department of State Service (DSS), claimed they have unraveled the identities of those wishing to cause mayhem.

“But I’m reasonably assured that any potential threat can be contained and nipped in the bud, since our secret service claims to have discovered the sponsors of mayhem. Such people should be arrested speedily,” Momodu advised.

He finally advised Tinubu to seek friendly advice, and extricate himself from the ‘hawks’ surrounding him as they do not mean well for him.

It would be recalled that the country has been on edge since the masses vowed to embark on a 10-day protest over extreme hardship in the country, beginning from August 1, 2024.

Read Dele Momodu’s letter in full:

ONCE AGAIN, AN APPEAL TO PRESIDENT BOLA TINUBU…

Your Excellency,

For the second time within two weeks, I’m compelled to write you this epistle. As I write this, my mind goes back to my earliest recollection of you as a Senator of the Federal Republic of Nigeria. As a young journalist, you were everyone’s delight. The June 12 Presidential election annulment brought out the best in you as a pro-democracy figure. You spent money and time fighting the military. Our exile years were lived in constant fear and trepidation.
Fast forward Sir. We returned to Nigeria in 1998

You contested the Lagos State Governorship election in 1999, and pronto, you won. Since then, you have been in absolute control of a state described as the California of Africa, and possibly the sixth richest economy in Africa. Lagos is a country on its own…. I’m just trying to let you know that you’ve been a President in Lagos for 24 years before becoming the President of Nigeria.

Unfortunately, things have not been easy for Nigerians (except members of the privilegentsia) since you realized your lifelong ambition. And let me be frank Sir. You caused it all. You did not realise that a country is much more complicated than a State.

I’m sad and embarrassed that a fighter for Democracy is now saying Nigerians will not be allowed to congregate and demonstrate on the streets, something you and I enjoyed during the military regimes, at home and abroad.

I will never support anarchy, after engaging in peace initiatives in Sierra Leone, Liberia and The Gambia. But I’m reasonably assured that any potential threat can be contained and nipped in the bud, since our secret service claims to have discovered the sponsors of mayhem. Such people should be arrested speedily.

Please Sir, go back to your original friends in civil liberties and seek their assistance. Then, use this opportunity to test the strength, security architecture and combat readiness of our security agencies. Ignore the advice of the hawks in your team. They have nothing to lose since they are mostly beneficiaries of what others died for. Resist the temptations of full blown dictatorship…
You’re in my prayers as you bear this cross…

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Rotary International District 9112 Launches Coastal Restoration Initiative, Plants 1000 Coconut Trees in Lagos

Published

1 day ago

July 26, 2024

Eric

In a bid to promote its mission of improving the environment, Rotary International District 9112 on Sunday kicked off an environment-saving intervention tagged: Coastal Restoration Initiative at Westside Beach, Okun, Ajah, Lagos, where 1000 coconut trees were planted along the coastal shores of the Atlantic Ocean.

Speaking at the event, the Governor of Rotary International, District 9112 Rotarian Femi Adenekan, said the “initiative is conceived to save the environment as well as reduce the adverse effect of the climate change.”

According to him, “the environment is one of the main focus areas of Rotary International. We need to consciously come to the realization that we need to save our environment. We need to save ourselves. So that in the future, those that will come after us will have life.”

“People assume that the world belongs to them. They have forgotten that they are just tenants on the surface of the earth. If you try to change nature, nature will react, which is the reason we are having a lot of environmental damage in the world. Some of wrong human activities, such as throwing plastics and other items into water or where it ought not to be is causing us environmental challenges. If we don’t take care of our environment, the environment will react and take us out of the surface of the earth,” He said.

The chairman of the District 9112 Tree Planting Committee, Rtn. Gboyega Bada recommended the adoption of an “Every Rotarian Plant a Tree Every Year” policy and also indicated plans for Rotary International District 9112 to propose a Private Bill to the Lagos State House of Assembly to enable all Lagos Residents plant a tree every year for the next five years to address the challenges of climate change.

Rtn Bada stated that the vision of Rotary District 9112 on Tree Planting is to achieve a safer and cleaner environment by planting 10,000 seedlings of Coconut, Mango, Breadfruit, Avocado and other ralated crops that have economic, health and environmental benefits.

The event was well attended by Stakeholders in the Private and Public Sectors. Pan African Towers Ltd, Tolaram Group, Azeez Amida Foundation, Telenoetica Ltd, amongst others were well represented. Past District Governor Tunji Funsho led other Rotary Leaders to give their support. The DG’s wife Rtn Tayo Adenekan, the District Governor elect Rtn Lanre Adedoyin, General Manager of Lagos State Coconut Development Authority, Dapo Olakulehim and Lagos State Parks and Gardens Agency, Club Presidents and Rotarians from the 73 Clubs graced the occasion.

Also speaking at the event, one of the Guest Speakers, the world acclaimed horticulturist, Mr. Andrew Vale of Tolaram Group and The Lagos Free Zone, highlighted the importance of trees, saying; “planting trees improves air quality, reduces air pollution, and illnesses from air pollution. More so, plants produce oxygen and provide shelter, medicine, and many more.”

In his own special remarks, Chairman, LUFASI Park and DG Coconut Naija, Dr. Desmond Majekodunmi, said; “the basic fact about the environment is that whatever you sow, you shall reap. The environment will always treat you, the way you treat it.”

It is of note that the vision of District 9112 on tree planting for this year is to achieve a safer and cleaner environment through the planting of 10,000 seedlings of coconut, mango, breadfruit, avocado and other related crops that have economic, health and environmental benefits.

The event was witnessed and supported by main stakeholders in the industry, agencies and partners which included, Mr Dapo Olakulehin, General Manager, Lagos State Coconut Development Authority (LASCODA), Mr Andrew Vale of Tolaram Group, Channel Scott from Pan African Towers, Azeez Amida Foundation, Telenoetica, The Legend Lifeskills Foundation, Etam Avitat, Lagos State Parks and Gardens Agency (LASPARK) , presidents and members of various Rotary Clubs in District 9112 amongst others.

Rotary leaders who witnessed the event are PDG Tunji Funsho, PDG Kamoru Omotosho, PDG Omotunde Lawson among others.

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Protest: Oluwo Advises Tinubu to Dialogue with Opposition Leaders, CSOs, Labour Leaders, Students, Others

Published

2 days ago

July 25, 2024

Eric

The Paramount Ruler of Iwoland,His Imperial Majesty, Oba Abdulrosheed Adewale Akanbi, has called on President Bola Ahmed Tinubu to invite stakeholders for dialogue ahead of August 1st, 2024 planned protest.

Oluwo stated consultation is necessary to avert violent confrontation by inviting the stakeholders for national discourse.

He feared protest might be hijacked by hoodlums to steal and destroy public properties built by our collective patrimony. Oluwo said dialogue becomes reasonable when it’s embraced before protest. He called on Nigerians to learn from Endsars protest that got many properties built with public funds destroyed.

Oba Akanbi asked President Tinubu to extend the invitation to major political opposition parties leaders mostly the Peoples Democratic Party (PDP), Labour Party, labour union leaders, students’ unions, civil society organizations (CSO), notable traditional rulers and other stakeholders to discuss the state of the nation and collate more ideas to address the economic hardship.

Oluwo expressed strong conviction in patriotic opposition political parties leaders to honour such national conversation.

Oluwo affirmed the economic hardship and inflation are global, conveying the need to hold national talks with stakeholders to discuss solutions to the country’s challenges.

A statement released by Oluwo through his press secretary, Alli Ibraheem, reads “At this crucial moment of global economic challenge, Nigeria inclusive, I call on President Bola Ahmed Tinubu to convey a national dialogue most especially with the dog handlers comprising the opposition parties leaders, civil society organizations, labour leaders, students, traditional rulers and religious leaders”

“In a democratic setting,a peaceful protest is guaranteed provided some are not waiting somewhere to hijack it. Protest will not be advisable at this critical moment of tense global economic hardship”

“I’ve strong hope in the opposition leaders to honour national dialogue and contribute intellectual ideas to national development. No patriotic opposition leaders will want Nigeria to be destroyed”

“Even if a protest is held, we will resort to a round table discussion after the road show. Rather than allowing hoodlums to hijack and destroy the nation we are trying to construct, why not embrace dialogue? When we sit together and talk to each other, more virile approaches and solutions may be suggested for application. It will also provide an avenue for the government to reveal their plans in checkmating food crisis and manage the economy to our collective advantage ”

“Different bodies should have representative(s) at such gathering. Those willong to protest should appoint leaders. It shouldn’t be like endars protesters without leader. No harm will be done to them. As a traditional ruler and leader, I’m watching to ensure masses interests are protected and always ready to speak truth to power. Sincere protesters can reach out to notable traditional rulers”

“The inflation is killing. It’s a global phenomenon. I visited Saudi Arabia recently. Prices of goods have gone up acrosa the world. Even the rich are finding it difficult. Addressing the challenge should involve everyone to come together and discusss way forward”