Africa must increasingly rely on private capital and regional investment as global development aid continues to decline, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has warned. Speaking at the 5th B2B Agribusiness Matchmaking Event in Abuja, the minister said rising debt service costs and shrinking concessional financing have left African governments with limited choices in funding development.
Addressing policymakers, investors, and agribusiness stakeholders, Edun highlighted that the continent is losing crucial fiscal space as debt obligations swallow public funds meant for growth projects. He cited data from the African Development Bank showing that development aid to Africa fell by 9 per cent in 2024 and is expected to drop by another 17 per cent in 2025 — a trend reflecting what he called a global “retreat from multilateralism.”
Edun emphasized that Africa must now look inward by boosting intra-continental trade, expanding value addition, and creating an investment-friendly environment capable of attracting both domestic and foreign private capital. He added that while traditional partners are stepping back from broad economic cooperation, opportunities still exist in health and climate financing — but not enough to sustain Africa’s development needs.
At the event, hosted as part of the Arab Africa Trade Bridges Programme, industry leaders also underscored the continent’s untapped potential. CEO of Welcome 2 Africa International, Bamidele Seun Awoola, revealed efforts to secure at least 10 major trade deals worth over $100 million between African and Arab markets. She highlighted that Africa’s agricultural strength must be matched with strong processing capacity and joint ventures to unlock real economic value and job creation.
A key achievement of the Abuja gathering was the signing of Membership Agreements with Nigeria and Côte d’Ivoire, formally integrating both countries into the AATB Programme. The initiative focuses on boosting export competitiveness, strengthening agribusiness value chains, supporting SMEs, and improving logistics and industrial capacity — steps stakeholders say are essential for Africa to thrive in a new era of reduced global support.
source: punch