For Africa’s poorest countries, it’s time for transformation

The following is an edited excerpt from African Business magazine, originally published April 25, 2024.

Countries around the world are struggling to make ends meet—none more so than the poorest in the world, which have been caught in a cycle of debt, crisis, pandemic, and fragility that seems nearly impossible to escape. Many of these countries are on the African continent, and nearly one in three of them is poorer on average than it was on the eve of the COVID-19 pandemic, according to the World Bank.

Concessional finance—grants and very low-interest loans—has for years been a critical lifeline, helping change lives through investments in better health, education, sanitation, infrastructure, and a host of other essential areas. The World Bank’s International Development Association (IDA) is the largest lender of this kind and has since its inception in 1960 been a partner on the pathway out of poverty for millions of people.

This year IDA is going back to donors for its 21st replenishment. For Africa, this is a turning point. It’s time to focus on creating investment opportunities and fostering economic independence and prosperity rather than just asking for money. And this is no wonder. ACET’s most recent African Transformation Index shows that African countries are not transforming nearly quickly enough—with an average score of just 30.3 out of 100.

As we look ahead, we have a few key priorities for African heads of state, for IDA donors, and for the World Bank…

To read the full opinion piece, please visit the African Business web site.

– Mavis Owusu-Gyamfi is Executive Vice President of ACET.

– Ndidi Okonkwo Nwuneli is CEO of the ONE Campaign.