AFRICAN countries need to be more creative in order to attract more investment in agriculture and infrastructure if the continent is to maintain high growth rates, create more jobs and reduce poverty.This is the message from experts who attended a high level debate on “Africans Transforming Africa” during the ongoing African Development Bank’s annual meeting in Arusha this week. “We should think creatively,” asserted Ngozi Okonjo Iwaala, Nigeria’ Finance Minister who was one of the panellists.Citing Nigeria as an example, Ngozi said the country spends US$4 billion every year on food imports adding that it is the world’s second largest importer of rice.This, she says, calls for more investment in agriculture because the sector “is three times more effective than other areas in terms of reducing poverty.” However, Ngozi cautioned African governments to ensure macroeconomic stability and build buffers to mitigate risks associated to external economic shocks if such investment is to be effective.Donald Kaberuka, president of AfDB, said finances alone are not the solution to Africa’s infrastructure challenges, suggesting that governments need to also focus on improving their respective countries’ regulatory framework, institutions and promote public private partnerships (PPP).“… and governance has a key role to play,” he stressed.According to Rwanda’s Minister of Finance, John Rwangombwa, the government has invested heavily in agriculture especially Vision 2020 Umurenge—a programme designed to deal with extreme poverty in rural areas.“Our growth is inclusive,” Rwangombwa noted.He added that government has prepared a private PPP law aimed at creating investor confidence to venture with government.Other panellists included, Prof. Mthuli Ncube the Chief Economist and Vice President in AfDB, Eleni Gabre Maghin the CEO of Ethiopia Commodity Exchange and Andrew Alli, president and CEO of African Finance Corporation.Eleni Gabre Maghin shared her experience in Ethiopia citing how the commodity exchange has transformed the agricultural sector and improved lives of farmers.The country constructed warehouses in rural areas where agricultural produce is stored and sold, a move that has created many jobs.“Our poverty reduction outpaced growth because we brought the broad base of the rural poor to grow with us and this could be a one unique solution for Africa,” she said. The Rwandan government recently signed a Memorandum of Understanding with Nicholas Berggruen Institute (NBI), allowing the latter would help set up the Rwanda Commodities Exchange. The exchange is expected to trade in coffee, tea and horticultural commodities as well as metals especially minerals.Regarding the infrastructure, AfDB says the sector remains among the Bank’s priorities.According to World Bank, infrastructural development in Africa requires US$93 billion compared to the available US$45 billion.AfDB says the continent should allocate approximately US$ 38 billion each year for infrastructural development, which is between US$ 32 and US$40 per inhabitant, from 2005 to 2015, to enable the continent achieve the Millennium Development Goals in these sectors.The bank’s statistics show that activities in favour of the sector have increased considerably, accounting for 62 per cent of all Bank approvals.
