Banker gives a 'high-five' to progress

China offers lessons to Africa on how to advance in terms of agriculture, SEZs and poverty relief, says development bank chief

Akinwumi Adesina would like to compare his five development strategies for Africa as five fingers - but to have all the fingers function well, he says, China's cooperation is inevitable.

In many areas, especially energy, agriculture and special economic zones, there is a lot potential for Africa and China to work together, says the president of the African Development Bank Group in an exclusive interview.

He was in Beijing as head of a high-level bank team that met with Chinese government and business leaders, including Vice-Premier Ma Kai and Zhou Xiaochuan, governor of the central bank.

On the AFDB's development agenda, Adesina says there are five priorities for the next 10 years: to light up and power Africa, feed Africa, integrate Africa, industrialize Africa, and improve the quality of life for the African people. These areas, the so-called high-five, have been designed to serve as a blueprint for countries to embark on a course of sustainable transformation.

He says of all five fingers, one is a little longer: light up and power Africa.

"Today, 645 million Africans don't have access to electricity. As a result, it reduces Africa's GDP by about 5 percent every year, so the continent cannot industrialize and is not as competitive," Adesina explains. "Electricity is like blood in your body ... If you don't have blood, you die. Africa is tired of being in the dark, so lighting up Africa is most important."

His goal is to drive universal access to electricity in Africa in a decade, and for this China is a great partner for Africa, he says.

"I see opportunities for Chinese companies, in particular in power generation, distribution and transmission. Today, China is leading the world in terms of hydro and wind power, as well as solar power development, so its companies have a lot of expertise."

Adesina says he would like to see more cooperation between the AFDB and Chinese banks, to prioritize investment in building pipelines.

"There are also huge opportunities in investment in infrastructure, in particular roads, ports and railways. It's not just the power sector, it is the whole area of industrial development."

China's use of special economic zones also offers lessons, he says, adding that he is amazed by the development in Shenzhen, which went from being a small fishing village in Guangdong province to a buzzing metropolis after it was designated as one of the country's first SEZs.

"If you look at Shenzhen over a period of 20 years, the per capita income there went from $500 to $22,000, while investment in the area went from about $6 million to $5 billion between 1996 and 2013. This success is something China can share with Africa."

Chinese companies are already investing in Africa, and their skills, knowledge and experience are playing an important part in the continent's development, he says, while co-financing agreements are also essential.

"The partnership with China is on several levels," he says, adding that in many cases Chinese companies have helped nations build and operate projects before transferring them to local shareholders.

"The Chinese government is beginning to see that Africa is where the growth is, and that there is growth in the African private sector."

Adesina says he also admires how China sets long-term plans and then builds critical institutions to execute them. "Good policies are not enough. You need great leadership, you need great vision, but then you must be able to execute it."

China's rapid growth has been based largely on manufacturing and exports, he says, but now the country is shifting to focus more on domestic consumption and investment.

"The model for China going forward in the national development strategy is to focus a lot on taking the industrial capacity outside, to where skilled labor is much cheaper."

Salaries for skilled laborers in Africa are about a quarter of what Chinese workers may earn, he says. "Therefore, China's strategy to move overcapacity to Africa is a good one, and the AFDB wants to work very closely with China and its government to help accelerate Africa's industrialization."

He says China's industrial cooperation with Africa is a win-win model that will help his continent to gain the skills, technology and experience needed to develop its industrial sector.

Adesina, an agricultural development expert who served as Nigeria's minister of agriculture and rural development from 2011 to 2015, says China's approach to growth is a lesson in how to lift 400 million people out of poverty within a decade.

The country's focus on transforming agriculture created new economic prosperity in rural areas, he says.

"So the lesson for Africa is to focus on increasing agricultural activity and ensure food security. What professor Yuan Longping (the so-called father of hybrid rice) did was incredible, that's why the AFDB aims to help Africa to have its own green revolution, to transform agriculture, to cultivate the rural economy, and for Africa to be able to fit into the world."

Africa has about 65 percent of the world's unused arable land, which means it will be the solution to feeding the world, he says. So working with China to invest heavily in agriculture and to unlock that potential is very doable, he adds.

For Adesina, the first thing is to work with China on small and medium-sized agribusinesses involved in not only food production, but also food processing.

"Second, China can co-invest in Africa to develop irrigation infrastructure, because the success of China's agriculture is based on its irrigated agriculture, and it was able to raise productivity."

Third and the most important, he adds, is that Africa must move up the value chain.

"Today, Africa accounts for 75 percent of the global production of cocoa, but it accounts for only 2 percent of the $100 billion chocolate market. Africa is at the bottom of the value chain. We want it to move up the chain and add value to everything it produces. This is also means huge opportunities for Chinese companies."

Contact the writers through chenyingqun@chinadaily.com.cn