Reversing the negative narrative on investment in Africa

In a recent interview with CNBC Africa, Ms. Bajabulile Swazi Tshabalala, Senior Vice President of the African Development Bank Group, shared her insights on changing the negative narrative surrounding investment in Africa. The interview followed the collective call for business and investment in Africa at the recent AfDB Meetings, where heads of state emphasized that Africa is open and ready for business. Tshabalala highlighted that while the narrative about Africa has often been negative, there are more positives than negatives on the continent. One of the key outcomes of the meetings was the focus on fiscal tightening and the mobilization of domestic resources by African countries. Tshabalala emphasized that African nations are taking steps to create a conducive business environment to attract private sector investment. She also stressed the importance of public finance management and domestic resource mobilization, noting that Africa's challenges are often influenced by global events like climate change and global liquidity fluctuations. Looking ahead to the next decade, Tshabalala discussed the need to leverage Africa's wealth, including its young population and natural resources, to drive economic growth. She warned against focusing solely on debt ratios, advocating instead for investments in infrastructure and initiatives that support Africa's growth and development. As the conversation shifted to green financing, Tshabalala highlighted the importance of building Africa's resilience to climate change. She revealed that the African Development Bank aims to spend $25 billion on climate-related investments by 2025, with a focus on projects beyond renewable energy, such as drip irrigation and drought-resistant seeds in agriculture. Addressing geopolitical challenges in some African countries, Tshabalala reassured that the continent's focus on democracy and elections bodes well for its future. She emphasized the importance of partnerships and working with ruling authorities to advance Africa's interests and the well-being of its people. In closing, Tshabalala touched on the topic of artificial intelligence (AI), noting both the threats and opportunities it presents. She emphasized the potential for AI to leapfrog Africa's development and encouraged a positive outlook on embracing technology for the continent's advancement.