Why African economies should be valued based on natural capital – Akinwumi Adesina

The President of the African Development Bank (AfDB) Dr. Akinwumi Adesina has stated it is time to revalue African thrifts based on natural resources.

He stated this in an interview with the Voice of America (VOA) sequel to the global finance summit held in Paris which drew leaders from all over the globe.

According to him, “I’ve been pushing that we need to revalue our countries based on their natural capital…This fundamentally for me is how we are going get a lot of capital going into Africa, by the greening of African economies, by the proper valuation of carbon”.

African countries should tax multinationals and stop the illegal capital transfer

He also asserted for proactiveness on the part of African countries in galvanizing resources through taxing multinationals operating on the continent and curbing illicit capital transfer from the landmass to fund its infrastructure projects.

Dr. Adesina’s comments explain his interest in focusing on opportunities in the continent- its young population, abundant natural resources, sustainable development etc rather than armed conflicts, and the negative effects of climate change in terms of floods and droughts.

He said Africa’s numerous natural resources such as its timber, wildlife, oil and gas, gold and diamond and rare minerals like cobalt would entirely alter the balance sheet of the continent. He said “If that re-estimation were to be taken into account, the debt-to-GDP ratio would fall dramatically”

 

Edited by Damilola Adeleke

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