US Congressman says Africa is the place to invest

United States Congressman Gregory Meeks (left) and African Development Bank Group President Dr. Akinwumi A. Adesina met last week in Abidjan, Côte d'Ivoire. Image credit: African Development Bank

US Congressman says Africa is the place to invest

United States Congressman Gregory Meeks has warned that the United States will only be part of the future if it invests in Africa now.

The congressman from New York and Chairman of the US House Foreign Affairs Committee was speaking during a visit to the African Development Bank Group last week, as he and a team of congressional colleagues concluded a tour of three West African countries. African Development Bank Group President Dr. Akinwumi A. Adesina and several senior Bank officials welcomed the group to the Bank’s headquarters in Abidjan, Côte d’Ivoire.

“If the United States is not investing in Africa today – especially when we look at the size of Africa’s youth population, which is larger than America’s entire population– then we are not going to be a part of the future,” Meeks said. He added: “My singular focus had been to make sure Africa moves “from the back to the front. There’s a lot of work to do. Governments can’t do it alone. The African Development Bank will play a big role. When Prosper Africa needs guidance, I will point them to the African Development Bank.”  Prosper Africa is an initiative of the Joe Biden administration that brings together tools from across the US government to provide businesses and investors with market insights, deal support, financing, and solutions to strengthen business climates.

Meeks was accompanied by Congressman Ami Bera of California, Congresswoman Ilhan Omar of Minnesota, Congresswoman Joyce Beatty of Ohio, Congressman G.K. Butterfield of North Carolina, Congresswoman Brenda Lawrence of Michigan, and Congressman Troy Carter of Louisiana.

The group had visited Sierra Leone and Liberia before their arrival in Côte d’Ivoire. Members said they were inspired by the immense opportunities the African continent offers American investors.

Adesina thanked the United States for its continued support, including support for the Bank’s general capital increase in 2019, which saw its capital base rise from USD93-billion to USD208-billion. Adesina said the United States, the second-largest shareholder of the Bank, was “working with the right institution.” “We are African, we understand the needs of Africa, and we are driving change in Africa,” he said.

A need for closer cooperation

Adesina and the visiting members of Congress agreed on the need for closer cooperation between the African Development Bank and US investors. Adesina said the Bank would open an office in Washington, D.C., once Board approval was secured. He explained that the office would provide guidance about how to structure substantive US private sector investment in Africa. “We’d like to see a lot more US direct investment in infrastructure,” Adesina said. “We look forward to working with the United States Trade and Development Agency and others on this.”

Adesina said African economies were rebounding, but the continent faced mounting commercial debt, the adverse impacts of climate change, lack of opportunities for youth, and poor access to Covid-19 vaccines.

The African Development Bank is leading calls for the reallocation of USD100-billion in International Monetary Fund special drawing rights (SDRs) to African countries. It is advocating that these funds be channeled through the Bank as a prescribed holder of SDRs, and as an institution which has a AAA credit rating. “SDRs offer African countries a tremendous opportunity to deal with debt,” the Bank chief said.

Addressing climate change issues

Adesina asked for the United States’ support in tackling climate change. He explained that the Bank was investing heavily in climate adaptation and was working closely with US Special Presidential Envoy for Climate John Kerry and US Treasury Secretary Janet Yellen on climate finance.

In April 2021, the African Development Bank, together with the Global Center on Adaptation, launched the Africa Adaptation Acceleration Program to mobilise USD25-billion to support climate adaptation on the African continent.

Africa’s youth featured prominently in the discussion. The visiting delegation learned that the African Development Bank is supporting entrepreneurship and skills development, especially digital skills, and has been working to develop youth entrepreneurship investment banks, which will support the businesses of young people.

On health, an equally important subject given the realities of the last two years especially, the Bank president explained that as part of its plans for quality health care infrastructure, the institution would invest USD3-billion in building Africa’s pharmaceutical industries and vaccine manufacturing capacities.

Adesina also looked ahead to the 16th replenishment of the African Development Fund, the African Development Bank Group’s concessional lending arm. He is promoting reform of the Fund to enable it to leverage its equity and tap into capital markets in support of Africa’s low-income countries.

The US Congressional members and the Bank’s senior leadership shared consensus on the transformative roles of women.  According to Adesina, the Bank, through its Affirmative Finance Action for Women initiative, would disburse USD500-million to women businesses across the continent.

Delegation members expressed strong support for the African Development Bank’s priorities and appreciation of its development impact.

According to Congressman Butterfield, a constant refrain during the Africa visit was: “Congressman, we appreciate your aid but what we really want is trade and investment.”

Congresswoman Omar underscored the need for partnerships. She said: “We know Africa is resource-rich. Resources can only be well utilised if they are developed. Africa needs partners to prosper.”

Congressman Bera stressed the need to address Africa’s governance issues and the importance of keeping revenue from its resources within African countries.

Discussions also covered the role of the African diaspora and the need to stem the brain drain of African professionals from the continent.

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