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Africa needs $402.2bn annually to boost structural transformation by 2030- AfDB

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Africa needs to close a financing gap of about 402.2 billion dollars annually by 2030 to fast-track its structural transformation.

Dr Akinwumi Adesina, the president of the African Development Bank (AfDB), said this during the presentation of the African Economic Outlook (AEO) 2024 at the ongoing AfDB Annual Meetings in Nairobi.

“The report highlights the glaring inadequacies of the current global financial system in closing Africa’s financing gap for structural transformation, estimated at 402.2 billion dollars annually between now and 2030.

“To rectify these disparities, the report proposes a bold agenda for reforming the global financial architecture, including in the five following key areas,’’ Adesina said.

According to him, the AEO 2024 calls for overhauling the global financial architecture to transform African economies.

He said this included giving Africa a greater voice in Multilateral Development Banks (MDBs) and International Financial Institutions (IFI), reflecting its growing global gross domestic product share and rich natural resources.

Adesina said: “let us be clear. By seeking to transform the global financial architecture, Africa is just asking for a fair share of access and availability of resources to build on our vast economic opportunities.”

“The AEO advocates for greater private sector participation to complement public investments, particularly in areas with high social returns such as climate action and human capital development.

“The report calls for streamlining the global climate finance architecture to enhance coordination and facilitate access for African countries disproportionately affected by climate change.”

Adesina said the report urged MDBs to revise their business models to provide long-term concessional financing at scale to developing countries to bolster their capital positions.

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“It urged the channelling of a portion of the IMF’s Special Drawing Rights (SDRs) to MDBs and ensured a healthy replenishment of the concessional windows of the AfDB, the World Bank, ADF and the International Development Association.

“Recognising the slow and cumbersome nature of existing debt resolution mechanisms, the African Economic Outlook advocates for reforms to expedite debt workouts.

“It said this will ensure sustainable debt management, including innovative market-based solutions like “Brady bonds,” debt relief for climate purposes, and sovereign debt authority systems,’’ he said.

Adesina said the report emphasised the importance of strengthening domestic revenue mobilisation through improved tax policies and enhanced government revenue collection and utilisation efficiency.

He reiterated the importance of combating illicit financial flows, tax avoidance, and leveraging Africa’s abundant natural resources.

“Domestic resource mobilisation is good, but so is the prudent use of such resources. Countries should, therefore, strengthen their capacity to improve public finance management.

“Every year, the African Economic Outlook report provides timely evidence and analysis crucial for African policymakers, empowering them to make informed decisions,” Adesina said.

For his part, the bank’s Vice President and Chief Economist, Prof. Kevin Urama, underscored why strategic policies and firm political commitment are key to effectively using resource wealth for domestic revenue generation.

Urama described hard infrastructure, including roads, railways, and bridges, and soft infrastructure, including knowledge and institutional governance capacity, as “two wings of an aircraft”.

He said: “investing in productive infrastructure is key to accelerating Africa’s structural transformation.

“Growth prospects vary across Africa’s regions, reflecting differences in economic structure, commodity dependence, and policies.”(NAN)

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Tinubu approves N20bn take-off fund for NASRDA’s project

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The National Space Research and Development Agency (NASRDA) is set to commence the implementation of its space regulation and licensing mandate with N20 billion take-off fund approved by President Bola Tinubu.

The Director-General of NASRDA, Dr Matthew Adepoju, said this on Thursday in an interview with the News Agency of Nigeria (NAN) in Abuja.

Adepoju said the regulatory function of the agency as encapsulated in NASDRA Act (2010) had remained unfulfilled since its establishment in 1999.

He spoke against the background of NASRDA stakeholders’ workshop on space regulation scheduled for April 8.

He said on assumption of office he raised a memo to President Bola Tinubu on the need to enforce the regulatory functions of NASDRA.

According to him, this is in line with the provisions of Section 6 and 9 of the laws establishing it, adding that Tinubu eventually approved the take-off fund.

“When I raised that memo stating that our space can no longer be unregulated, Mr President graciously approved the take-off fund of N20 billion few months ago.

“This is to enable us to commence the space regulation and spectrum management in Nigeria.

“Although times and lots of activities happen that have security implications but if we don’t take charge of our space sector, it will continue to be misused,’’ Adepoju said.

Adepoju said the agency was yet to access the N20 billion, adding that release of funds was always subject to its availability.

“Within the framework of what is possible for us to do now, we’ve set up the platform and we are commencing our regulatory and licensing functions,” he told NAN.

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He explained that the space sector had three segments, the upstream, midstream and downstream.

“We have the upstream, which is deep space, the midstream, which is in between the space objects, such as satellites and the planet Earth.

“We have the downstream, which has to do with ground stations, activities and people who are utilising space products and services.
“In between these three sectors, there are activities that must be regulated otherwise Nigerians will be short-changed.

“People have to be licensed and issued guidelines, the spectrum within Nigeria has to be monitored and the agency has been granted this power since 2010 and this has lots of benefits,’’ he said.

Adepoju said the platform for the licensing was ready and open to both public and private sector operators in the space arena.

The licensing, he said, was available for people using and providing space products and services.

He emphasised the need for strict oversight of satellite image providers, geographic information system operators, satellite-based telecommunication and broadcasting services, among others.

He also said that if unregulated, geographical data intelligence could be exploited by non-state actors for illicit activities.

The Director-General further told NAN that the initiative would enhance national security, economic diversification and local content development.

He said it would also generate revenue from sub-sectors such as oil and gas, shipping and telecommunications relied on space products for their operations. (NAN)

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Myanmar earthquake: Rescue efforts ongoing amidst increasing fatalities

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The death toll from a 7.9-magnitude earthquake in Myanmar has risen to 3,085, with 4,715 people injured and 341 reported missing.

This is according to the Information Team of the State Administration Council on Thursday.

Chinese rescuers are continuing search and rescue operations in hard-hit Mandalay, central Myanmar, following the deadly earthquake last week, and have so far rescued nine survivors from the rubble.

On Thursday afternoon, the second batch of emergency humanitarian aid supplies dispatched by the Chinese government arrived in Myanmar.

The second batch of aid supplies include 800 tents, 2,000 blankets, 3,000 boxes of biscuits, 2,000 boxes of mineral water and other urgently needed supplies.

The first batch of emergency humanitarian aid supplies dispatched by the Chinese government for earthquake disaster relief arrived in Myanmar on March 31. (Xinhua/NAN)

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China threatens retaliation in response to new US tariffs

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Beijing on Thursday threatened countermeasures after U.S. President Donald Trump announced new tariffs on Chinese goods, further escalating trade tensions between the world’s two largest economies.

The U.S. has already imposed 20 per cent tariffs on Chinese imports, prompting retaliation from Beijing.

The latest round, which Trump had announced on Wednesday, adds a 34 per cent tariff hike, raising total duties on many Chinese products to over 50 per cent.

China’s Ministry of Commerce said that the tariffs violated international trade rules and were based on subjective and unilateral assessments by the U.S., calling them a typical act of bullying.

The ministry urged Washington to remove the measures and resolve disputes through dialogue, or it would take countermeasures to protect its rights and interests.

Trump on Wednesday announced new blanket tariffs of 10 per cent on most U.S. imports, with higher penalties based on trade deficits. (dpa/NAN)

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