Right governance key to continent’s transformation- AfDB

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Right governance key to continent’s transformation- AfDB

Right governance key to continent’s transformation- AfDB

The African Development Bank (AfDB) has reiterated the need for efficient and effective governance on the continent to enable Africa achieve transformation.

The Secretary-General of AfDB, Prof. Vincent Nmehielle, said this at a pre-media virtual briefing to herald the 2024 AfDB Annual Meeting.

“Africa has to get its governance right. We have to manage our resources well. We have to engage to minimise waste of resources.

“Africa must come to the point where it sees governance as an important instrument of economic development.

“We all have to put our hands on deck, the government, the private sector, commercial entities and all citizens. We need to get certain things right to ensure Africa’s transformation,” he said.

According to Nmehielle, Africa’s access and participation in the global financial system is key.

He said it was, therefore, crucial for African countries to have greater participation and prepare themselves to take better advantage of available access to finance.

Meanwhile, Prof.  Kevin Urama, AfDB’s Chief Economist and Vice President for Economic Governance and Knowledge Management, also reiterated the importance for economic transformation on the continent.

Urama said :“ Debt, management, improving risk ratings of countries and related topics will be on the table at the Annual Meetings as part of global architectural reform discussion.

“Already, the government of Zimbabwe is doing a lot to address debt arrears clearance.

“The bank is working with its minister of finance to ensure debt reduction models to enable the country maximise its huge economic advantages.

“I commend Mthuli Ncube, the nation’s finance minister as well as the country’s central bank governor for putting Zimbabwe on track.

“If you look at their Gross Domestic Product (GDP) growth,  it is really on a very positive trajectory.”

According to the vice-president, Africa is a key participant in the ongoing dialogue around global architectural reforms.

He said the bank under the leadership of its president, Dr Akinwumi Adesina, was leading and shaping the conversation through innovation and pioneering initiatives such as hybrid bonds.

He said AfDB was also working to see International Monetary Fund (IMF) Special Drawing Rights (SDRs), channeled to Multilateral Development Banks (MDBs) that could leverage them to provide extra financing for development.

“And Africa is really driving that conversation significantly. Therefore,  African countries should be well positioned to access the funds,” Urama said.

According to Urama, the statutory annual meetings are AfDB’s group most important event of the calendar year.

He said the meetings would take place at the Kenyatta International Convention Centre (KICC) in Nairobi, Kenya.