Nigeria’s former minister of finance, Mrs Ngozi Okonjo-Iweala, has advised African countries to direct Chinese assistance to build sustainable regional infrastructure projects that can unlock the continent’s vast potential, a decision she said was key.
Two thirds of the continent’s infrastructure is yet to be built, that is why she said “Africa can lead with clean, low-carbon sustainable infrastructure.”
The former minister of finance said the new investments should be used to establish a network of clean, resilient infrastructure, like solar and wind farms, and sustainable public transportation projects already being hosted by few African countries.
The globally renowned economist shared her thought on the fact that “The concern about Africa’s rising debt profile is real.”
According to the International Monetary Fund (IMF), sub-Saharan Africa’s debt to GDP ratio has risen from 26.3 per cent in 2009 to 48.1 per cent today. She noted that this ratio was far higher and in dangerous territory for a handful of countries.
In her article in Financial Times, Okonjo-Iweala also said African countries need to seek a good balance of concessional loans, grants and foreign direct investment, individually and collectively to sustain their development.
“This approach can lay the foundation for a new growth story, one that creates millions of jobs for our youth, one with efficient and liveable cities, restoration of degraded agricultural lands including a halt to deforestation, and clean energy and water resources,” she said.
A new report from the Global Commission on the Economy and Climate, which Okonjo-Iweala co-chairs reported recently that bold climate action could yield economic benefits worth $26trillion between now and 2030 in African countries look to development of infrastructure along that part.
According to the Commission, bold climate action could also generate more than 65million new low-carbon jobs in 2030, equivalent to the entire workforces of the UK and Egypt today combined. These benefits would extend to countries big and small, including those in Africa, she added.
“In order to fully unlock the benefits of a low-carbon economy, it is imperative that this initiative be underpinned by principles of sustainability,” she stated, adding that “Africa’s progress toward a low-carbon development path is a golden opportunity for the continent to shine.
