GDP Not Enough to Measure Economic Growth, Says AfDB President

Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), has emphasized that economic progress should not be measured solely by Gross Domestic Product (GDP) growth, but by its impact on job creation for the youth. Speaking at the African Economic Outlook presentation during the 2024 Annual Meetings in Nairobi, Adesina highlighted the need for economic growth to be inclusive and beneficial, particularly to young people and women.

Adesina criticized the narrow pursuit of GDP growth, arguing that the real measure of economic success lies in its ability to generate quality jobs. He stressed that Africa cannot afford to have 477 million young people under the age of 35 without opportunities, as this could lead to significant migration issues. Instead, he called for investment in young people’s skills, talents, and entrepreneurship to harness their potential for the continent’s development.

He expressed enthusiasm for initiatives like the Youth Entrepreneurship Investment Banks and the Special Agricultural Processing Zones, which aim to transform agriculture structurally. Adesina also underscored the importance of the African Continental Free Trade Area (AfCFTA) in boosting industrial manufacturing and intra-African trade, reducing reliance on external exports. He emphasized that trading within the continent should be supported by robust industrial manufacturing to ensure competitiveness.

Furthermore, Adesina advocated for enhanced domestic resource mobilization and a stronger private sector, alongside a shift from dependence on commercial creditors to concessional finance. He called for more blended funds to accelerate Africa’s development and appreciated the strong governmental support for the AfDB’s capital increase, which is crucial for maintaining the bank’s triple-A rating and securing long-term, low-interest financing.

Governance, transparency, and accountability were also highlighted as essential for Africa’s progress. Adesina noted that Africa had $6.8 billion in national capital assets as of 2018, and if managed effectively, these resources could significantly boost the continent’s transformation. He concluded by stating that Africa’s future is bright, provided that governance issues are addressed and resources are utilized effectively for the benefit of the people.