Abuja: Africa’s transition states will require an annual financial injection of $210 billion to achieve a sustainable and structural economic transformation, according to the African Development Bank (AfDB). Dr. Abdul Kamara, Director-General of the Nigeria Country Department at AfDB, made this announcement during a policy dialogue session at the Nigerian Economic Society (NES) Conference in Abuja.
According to News Agency of Nigeria, the session focused on the theme ‘Driving Africa’s Economic Transformation in Transition States: The Role of Capacity Development and Knowledge Management.’ Kamara highlighted that despite Africa’s vast potential, transition states are grappling with unique challenges such as fragile institutions, post-conflict reconstruction, limited fiscal capacity, and revenue mobilization constraints, which hinder inclusive development.
The AfDB’s study on inclusive growth and sustainable development in Africa, which concluded in 2024, identified crucial actions to expedite growth. Kamara emphasized the need to scale economic growth rates to seven percent annually and achieve a GDP per capita growth of at least 3.5 percent. He stressed the importance of evenly distributing this growth to enhance the quality of life for Africans in the short, medium, and long terms.
Kamara revealed that these targets necessitate high productivity levels in key sectors to boost Africa’s GDP and GDP per capita growth rates, thereby promoting inclusive and environmentally sustainable policies. He noted a significant funding gap of $680 billion per annum, underscoring the challenge transition states face.
To achieve structural transformation, Kamara stated that transition states in Africa require $210 billion annually. He pointed out that sustaining these growth levels consistently for four to five decades is crucial for reaching both the United Nations Sustainable Development Goals and the African Union’s Agenda 2063. Despite needing $210 billion each year, transition states confront a financing gap estimated at $188 billion, which impedes progress.
The AfDB, in collaboration with the African Union, has responded by establishing a dedicated Transition Support Facility. This facility channels resources into infrastructure, energy, education, technology, and innovation-sectors essential for structural transformation. Beyond growth, the bank emphasizes inclusive growth that generates jobs and ensures young people have access to opportunities in emerging sectors.
Kamara highlighted the bank’s investments in capacity development and creative enterprises, including digital innovation hubs across Africa. He also mentioned ongoing projects in Nigeria under the Investing in Digital and Creative Enterprises (i-DICE) programme, supported by development partners to foster innovation and entrepreneurship.
He called on policymakers and stakeholders to craft solutions tailored to Africa’s context, emphasizing that transformation must be locally driven with active citizen and institutional participation. Kamara praised the NES for facilitating dialogue and commended the Nigerian Government for providing an enabling environment for the conference. He reaffirmed the bank’s commitment to offering financial and technical support to advance development in Africa’s transition states.