• Mobilize domestic resources to finance Africa’s industrialization
• Africa and Korea to open new pathways for cooperation
22/5/2018/AfDB
Sanussi Il Lamido, Emir of Kano and former Governor of the Central Bank of Nigeria called on African nations to provide evidence of transparency in their economic management, stating that corruption is a serious obstacle to the continent’s development.
“Perceptions are important. It is critical to improve transparency in our countries, since transparency is clearly linked to good governance,” he said during a co-led high-level panel that included several African ministers and the President of the African Development Bank, Akinwumi Adesina.
On the eve of May 23, 2018, the official opening of the Bank’s 2018 Annual Meetings, Sanussi Il Lamido emphasized that the best way to fight corruption in Africa is to begin by acknowledging its existence.
“We must accept that we have a problem with transparency that we must deal with. We must fight corruption, stop capital leaks and create opportunities that lead to new job creation,” he continued.
The former Central Bank of Nigeria Governor also called on African Governments to take measures to reinforce transparent management of public affairs and end cross-border smuggling and the loss of revenue plaguing their countries.
Positive impacts
Several other speakers echoed this theme, recalling their countries’ experience and emphasizing the positive impacts of transparency in public affairs management.
“Today, Algeria is a rapidly growing, stable economy, although it was formerly in the grip of terrorism. We ratified the international convention on anti-corruption efforts and our economic policies are focused on mobilizing our significant human and natural resources for economic growth,” said Algerian Finance Minister Abderrahmane Raouya, Governor of the African Development Bank.
Eritrean Finance Minister Berhane Habtemariam, also a Bank Governor, reiterated his country’s full support of anti-corruption efforts and the work undertaken by its government to clean up the economy, despite nearly 20 years of war.
“We have a simple tax system in Eritrea: we have no value added tax but we tax sales and services,” Habtemariam added.
Beyond the challenge of transparency, Angola must confront a challenge unique to economies that have been historically based on the export of primary materials.
“Angola neglected its non-petroleum economy for many years, but that is starting to change. Transparency has always been a problem, a major challenge for us in Angola. However, the government is now focused on changing the perception of a corrupt Angola,” said the Angolan Secretary of State for Budget Aia-Eza Nacilla Gomes Da Silva.
Other approaches to transformation
Transparency, even complete transparency, in itself cannot ensure the total transformation of African economies.
To achieve a transformation, the continent will need to accelerate industrialization and strengthen cooperation with other regions of the world. As the premier development financing institution in Africa, the African Development Bank plans to mobilize approximately US $35 billion over the next ten years to finance industrialization programs in Africa. In addition to providing real added value to the continent’s economies, these programs will create thousands of jobs and protect those economies from the price volatility of primary materials.
The economies of several African countries, including Algeria, Angola and Nigeria, have suffered from the drop in prices for primary materials.
To be effective and provide rapid results, Africa’s industrialization must be based on strengthening its cooperation with other regions of the world. Korea’s partnership with Africa, established many years ago as the Ministerial Conference for Korea-Africa Economic Cooperation (KOAFEC), is a prime example of this.
Created in 2006 by the African Development Bank Group, the South Korean Ministry of Strategy and Finance, and the Korean Export-Import Bank, this year it will be held on May 22-24 in Busan, peripheral to the Bank’s 53rd Annual Meetings.
Africa and Korea have agreed to work together to explore intelligent technologies to stimulate the continent’s rapid industrialization and make it a major player in the fourth industrial revolution.
“Cooperation between us and Africa is sincere,” said Dong Yeon Kim, Korean Deputy Prime Minister and Minister of Strategy and Finance, during the biannual consultations between African and Korean partners.
African Development Bank President Akinwumi Adesina confirms that the partnership between Korea and Africa will inevitably be a win-win.
“This partnership will help increase productivity by stimulating technological progress and innovation while at the same time creating higher-level jobs in the formal sector of our economies.”
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