By Phiwa Sikhondze
The Minister of Finance, Neal Rijkenberg, has called on the African Development Bank (AfDB) governors to collaborate closely with governments and the private sector to harness the vast economic potential of Africa’s natural resources.
In a recent address at the African Development Bank (AfDB) annual meetings in Nairobi, Kenya, the Minister outlined a strategic vision to leverage the continent’s hundreds of trillions of dollars in value from natural resources, land, and assets to attract substantial private sector funding.
Rijkenberg underscored the pivotal role of the AfDB in providing essential support and expertise, noting that the bank’s involvement is crucial in identifying and mitigating risks, thus making investments more appealing to the private sector.
The Minister also drew attention to the immense value embedded in Africa’s natural resources, land, and assets, suggesting that both local and foreign investors typically regard these investments as low-risk.
To attract private sector funding, the Minister stressed the importance of strategic leveraging of investments. He called on governments to work closely with the AfDB to pinpoint key investment areas, ensuring optimal returns and sustainable partnerships.
Rijkenberg also suggested that in certain instances, proactive government investment might be necessary to spark private sector interest and development.
The Minister requested the AfDB team to conduct thorough diagnostics and research into the key bottlenecks preventing effective private-sector funding. He proposed that the Bank, well-positioned with its expertise, assists by providing insights and solutions to these challenges.
Furthermore, the Minister recommended that the Bank team finalize a clear strategy for unlocking private-sector finance. He said the strategy should be presented to the board for approval and subsequently embedded into the Bank’s broader agenda.
By doing so, the Bank can streamline efforts and focus resources on the most impactful areas, ensuring a more attractive investment climate.
This initiative represents a significant step towards transforming Africa’s economic landscape. By addressing investment bottlenecks, leveraging existing assets, and fostering strategic partnerships, the Minister believes Africa can unlock unprecedented value and drive sustainable growth.