Business
Policy Choices, Key To Vibrant African Economy – AfDB
The African Development Bank (AfDB) says it’s vision of stable and vibrant African economies by 2022 will be predicated on policy choices made by regional member countries.
Resident Representative of the bank in Nigeria, Ousman Dore, stated this in an interview with newsmen on Sunday in Abuja.
He expressed concern that growth in African economies had done little to create jobs and reduce poverty for millions on the continent.
“Africa over the last 10 years or so has delivered a very strong performance in macro economic growth and inflation.
“If you look at what happened in the global financial crisis, Africa stood out as a continent that clearly weathered quite well the impact of these crises.
“Notwithstanding this progress, notwithstanding the issue is how you can tackle the main challenge facing the continent and these are clearly obvious.
“Growth has not translated into employment, essentially improvement in living conditions; inequality is still prevalent.
“Aggregate poverty, obviously, may have declined but you see large unemployment particularly on the cohort of the ages between 16 and 24, so it is a big challenge.’’
Dore defended cynicism that the bank’s 2022 vision might be a “white elephant’’ because the prospect of growth could not be achieved in a continent notorious for poor governance, endemic corruption and conflicts.
“The vision of the ADB is not an empty ambition it is based on what we have observed in the past two decades.
“We believe that in 2022 our vision is that you will likely see in Africa, a continent that is vibrant, growing, stable, prosperous, and there are all ingredients for that to be the case.
“But it should not be taken as ‘faith’; it will come out to be regardless; it has to be predicated on the policy choice that member countries will make for them to work with ADB to deliver.’’
Dore said the AfDB had started consultations with different key stakeholders in member countries to fashion out a new vision for the 10-year Long Term Strategy programme 2012-2022.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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