The African Development Bank (AfDB) has proposed strategic solutions to help Nigeria and other African nations manage rising debt and foreign exchange challenges. Prof. Kevin Urama, the organization’s Vice-President for Economic Governance, provided these insights. According to him, African countries should prioritize long-term loans linked to sustainable investment strategies and shun short-term, high-cost loans that increase refinancing risks. On foreign exchange, Urama stressed the need to reduce Africa’s dependence on imports, especially food, and encouraged member countries to unlock the continent’s vast agricultural potential through initiatives like the AfDB’s AgriPreneur program. He cited Ethiopia’s transformation into a wheat exporter as a model for African countries to follow in achieving food self-sufficiency. Urama also highlighted political stability and sound governance as crucial for progress, noting Botswana’s success in attracting investment. Finally, he called for long-term strategies focused on local production, stable governance, and macroeconomic resilience to strengthen the continent’s economies.
SOURCE: NAIRAMETRICS