The President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has sounded the alarm on Africa's economic model, stating that the continent is "shooting itself in the leg" by exporting raw materials instead of value-added products. According to Adesina, this approach has led to little profit and job creation within Africa, with the true benefits being reaped in other regions of the world.

Adesina's remarks highlight a stark reality: Africa accounts for less than 2% of global manufacturing, despite being home to some of the most sought-after raw commodities in the world. The continent's share of global trade is also less than 3%. This is largely due to Africa's weak ability to add value to its resources, with most countries exporting raw forms of commodities such as oil, cocoa, and lithium.

As a result, the true profits, job creation, and industrial expansion are achieved in other regions, primarily Europe, Asia, and North America, where raw ingredients are turned into completed goods and sold at substantially higher prices. This not only weakens Africa's economic sovereignty but also exposes the region to the volatility of global commodity prices.

To address this issue, Adesina is advocating for a deliberate move towards industrialization and an exploration of the continent's own market. The AfDB's African Continental Free Trade Area (AfCFTA) initiative aims to boost intra-African trade, thereby circulating the continent's wealth within its borders. By promoting value-added products, Africa can increase its economic growth, create more jobs, and reduce its dependence on raw material exports.

In addition to his remarks on Africa's economic model, Adesina also criticized the unfair allocation of the International Monetary Fund's (IMF) Special Drawing Rights (SDRs). He noted that Africa received only $33 billion from the global lender, a mere 4.5% of the $650 billion issued globally. Adesina argued that the distribution model of the SDRs failed to reflect the urgent financial needs of Africa, which bore some of the deepest economic scars from the pandemic.

In response, the AfDB, in partnership with the African Union, has taken the lead in ensuring that unused SDRs are directed from wealthier countries to African economies. The IMF Board has since adopted a new framework that was co-developed with the Inter-American Development Bank (IDB) and makes use of the AfDB's AAA credit rating.

Adesina's call to action highlights the need for Africa to rethink its economic strategy and focus on value-added products to drive growth and industrialization. By doing so, the continent can unlock its full potential and become a major player in the global economy.