President of the African Development Bank Group, Dr. Akinwumi Adesina, has issued a rallying call for Africa to pivot from decades of aid dependency and embrace a new era of self-reliance, while declaring that the era of free money is gone.
Speaking at the 14th Convocation Ceremony of the National Open University of Nigeria (NOUN) in Abuja on Friday, Adesina delivered a lecture titled “Advancing Africa’s Positioning within Global Development and Geopolitical Dynamics,” in which he urged the continent to reimagine its path to development in light of shifting global realities.
“The era of aid or free money is gone. Benevolence is not an asset class. African countries must now learn to develop via investment discipline. The old development models will no longer work,” Adesina declared.
A global wake-up call
Adesina highlighted several global developments reshaping the aid landscape, including the dismantling of the U.S. development aid agency and the rise of anti-aid sentiment across Europe.
- According to him, these shifts signal the end of Africa’s reliance on foreign support as a pillar of national budgets.
- He called on African leaders to build resilient economies based on trade, industrialization, and natural resource transformation. He also stressed the urgent need to fully implement the African Continental Free Trade Area (AfCFTA) to boost intra-African trade.
“Produce local, buy local, trade more locally,” he charged.
Turning global challenges into opportunities
Despite painting a stark picture of Africa’s current vulnerabilities, including restrictive immigration policies, undervaluation of natural capital, and the impacts of global tariff wars, Adesina positioned these as opportunities for Africa to assert itself in global economic dynamics.
“Forty-seven out of 54 African countries have been placed under higher U.S. tariffs. This will reduce exports, shrink foreign exchange earnings, weaken currencies, and drive up inflation,” he warned.
- To counter these risks, Adesina called for Africa to leverage its green wealth by revaluing its natural capital.
- The African Development Bank is developing a framework that would allow countries to re-estimate their GDP based on the value of their environmental assets.
- This could lower debt-to-GDP ratios, improve credit ratings, and unlock new financing opportunities.
From resource extraction to value addition
A consistent theme throughout Adesina’s speech was the need for Africa to break free from its dependence on raw material exports.
“The export of raw materials is the door to poverty. The export of value-added products is the highway to wealth. And Africa is tired of being poor,” he stated.
- He revealed that the African Development Bank is working closely with the African Union and the Economic Commission for Africa to develop an African Green Minerals Strategy.
- The strategy aims to support countries in transitioning from extractive economies to value-added industries while promoting sustainability, transparency, and social responsibility.
“Africa must become competitive in global value chains. It must move away from exporting raw minerals and into processing and high-value manufacturing,” Adesina emphasized.
- With Africa’s population projected to hit 2.4 billion by 2050, and 75% under the age of 35, Adesina stressed that education and entrepreneurship will be the cornerstones of Africa’s future.
- He called for investments in digital skills, innovation, and job creation that align with the global digital economy.
What you should know
Adesina will be completing his second five-year term as AfDB President in September this year and will be vacating the seat for a new helmsman.
Under his leadership at the AfDB, the Bank’s general capital increased from $93 billion in 2014 to $318 billion today, while achieving recognition as the Most Transparent Financial Institution in the world for two consecutive years.
