News Guide Africa

Tag: African Development Bank (AfDB)

  • Ghana launches $3.5b ‘AgriConnect’ Compact to weaponize agric against youth unemployment

    Ghana launches $3.5b ‘AgriConnect’ Compact to weaponize agric against youth unemployment

    By Adnan Adams Mohammed

    In a decisive and historic bid to rewrite the economic narrative of the sub-region, the Government of Ghana, in partnership with the World Bank Group and the International Fund for Agricultural Development (IFAD), has officially launched the multi-billion-dollar AgriConnect Compact.

    The landmark national framework, unveiled at the West Africa Rice Investment Roundtable in Accra on Wednesday, represents a massive $3.5 billion investment targeted at modernizing the country’s agri-food systems.

    Operating in its first phase from 2026 to 2030, the initiative aims to dramatically bolster food security for nearly three million citizens, slash hefty national food import bills, and, most critically, catalyze the creation of more than 2.6 million high-value jobs across the continent by 2035.

    The Answer to Africa’s Unemployment Crisis

    The launch arrives at a time when youth unemployment remains a volatile socio-economic challenge across Sub-Saharan Africa. Speaking passionately at the launch event, the Minister of Food and Agriculture, Eric Opoku, advanced a bold vision of the soil as Africa’s truest goldmine, insisting that modern farming is the silver bullet to the continent’s job deficit.

    “AgriConnect is about turning Ghana’s agricultural potential into tangible results: more food on the table, more jobs for young people, and more value created here at home,” Minister Opoku declared. “This Compact provides a clear roadmap to modernize agriculture, support farmers, and build stronger value chains that can drive growth nationwide.”

    The Minister fiercely challenged the archaic perception of farming as a grueling, low-income occupation reserved for the elderly, arguing that the integration of digital technology, mechanization, and agro-processing alters the paradigm completely.

    “Agriculture can eliminate youth unemployment in Africa. This is Ghana’s moment to feed itself, employ its youth, build competitive industries, and create wealth from its own soil,” Opoku added.

    An Ambitious $3.5 Billion Blueprint

    The AgriConnect Compact is designed as a private sector-led, government-enabled strategy. Rather than merely boosting raw crop yields, the framework seeks to build end-to-end, integrated value chains. It explicitly prioritizes five strategic national sectors: cocoa, oil palm, rice, maize, and poultry, alongside secondary interventions in fisheries, coconut, and the forest economy.

    Financing the ambitious five-year initial phase will require an estimated $3.5 billion. Funding is expected to be pooled from public coffers, international development partners, and the aggressive crowding-in of private institutional capital. Demonstrating state commitment, the Ministry of Food and Agriculture revealed it has already released GH¢1.677 billion representing 85% of its approved 2026 capital and goods budget to scale up rural irrigation, distribution of high-yield seeds, and fertilizer logistics.

    Thomas Nyarko Ampem, the Deputy Minister of Finance, emphasized that the state’s fiscal policy is now firmly aligned with rural industrialization.

    “The Government of Ghana remains fully committed to working with all stakeholders to translate the aspirations of this AgriConnect Compact into tangible results for our people,” Deputy Minister Ampem stated. He noted that building a resilient rural economy saves critical foreign exchange by substituting imports with high-quality, homegrown alternatives.

    Global Backing for a Continental Model

    Ghana’s entry into the AgriConnect framework follows similar rollouts in Senegal and Guinea earlier this year, marking a rapidly growing continental movement backed by the World Bank Group. The global AgriConnect initiative aims to transform farming for 300 million smallholders worldwide by 2030, supported by heavyweights like the African Development Bank (AfDB), Google, and Bayer.

    Guangzhe Chen, the World Bank Group Vice President for Planet, flew into the capital for the launch and praised Ghana’s comprehensive structural approach.

    “Ghana’s AgriConnect Compact is a bold step toward building a more productive, resilient, and jobs-rich food system,” Chen noted during his address. “By linking policy reform with investment and delivery, Ghana is creating the conditions to strengthen food security, support farmers and agribusinesses, and unlock private capital at scale.”

    Echoing this optimism, Lakshmi Moola, the IFAD Country Director for Ghana, highlighted the focus on human-centered growth and poverty alleviation.

    “Through AgriConnect, IFAD is deepening its commitment to end rural poverty and build resilient, inclusive food systems in Ghana,” Moola stated. “Together with partners, we are scaling investments that deliver jobs, opportunity, and lasting impact for rural communities.”

    The Road Ahead: Execution is Everything

    Economic analysts have largely lauded the pact, noting that generating an average of 520,000 jobs annually over the next few years could profoundly stabilize the domestic economy. However, experts also warn that the ultimate success of the $3.5 billion bet relies entirely on steady, transparent implementation, infrastructural development like rural roads, and lowering the high credit barriers currently facing young agribusiness entrepreneurs.

    With the framework now officially signed and heavily funded, the eyes of the continent will be on Ghana to see if its soil can successfully absorb and empower the next generation of African workers.

     

  • Economy surges past US$100bn as gov’t rules out future IMF bailouts

    Economy surges past US$100bn as gov’t rules out future IMF bailouts

    By Adnan Adams Mohammed

    In a historic turning point for West Africa’s second-largest economy, Finance Minister Dr. Cassiel Ato Forson has declared that Ghana has officially transitioned from an International Monetary Fund (IMF) “supplicant” to an equal economic partner.

    The announcement comes on the heels of new data revealing that the country’s gross domestic product (GDP) has surged past the historic US$100 billion threshold, driven by robust macro-fiscal performance and aggressive structural reforms.

    Addressing a high-level assembly of international investors and state actors, Dr. Ato Forson firmly ruled out any reliance on foreign bailouts for the foreseeable future, pointing to an economy that is rapidly regaining its self-sufficiency.

    “Ghana has officially moved from being an IMF supplicant to an economic partner,” Dr. Ato Forson declared. “With our economy surging past the US$100 billion mark, I can confidently state that no IMF bailout will be needed in the foreseeable future. The gains we are witnessing are not cosmetic; they are the tangible outcomes of deliberate, painful, and well-thought-through structural rules backed by disciplined implementation.”

    African Development Bank backs rebound with 5% growth forecast

    The Finance Minister’s optimism is strongly supported by external multilateral institutions. In its freshly released 2026 African Economic Outlook Report, the African Development Bank (AfDB) upgraded Ghana’s growth forecast, projecting a 5 percent GDP expansion for 2026, which is expected to accelerate further to 5.4 percent in 2027.

    The AfDB’s robust outlook outpaces the more conservative 4.8 percent estimates previously issued by both the World Bank and the IMF. According to the report, Ghana’s recovery is underpinned by expanding agricultural value chains, a resilient external sector maintaining a current account surplus of 3 percent of GDP, and a steadily narrowing fiscal deficit projected to drop to 2.2 percent by 2027. Furthermore, the report anticipates that year-end inflation will stabilize at 9 percent, indicating a significant containment of historical price volatility.

    Bank of Ghana guarantees monetary stability for industry

    At the annual Ghana CEO Summit in Accra, top policymakers and corporate executives gathered to deliberate on aligning this macroeconomic upswing with local industrial expansion. Speaking to the business community, the Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, offered assurances that the central bank would maintain a highly disciplined monetary policy stance to safeguard the private sector from currency and price distortions.

    “Our focus remains squarely on locking in monetary stability to drive long-term industrial growth,” the BoG Governor stated at the summit. “Through disciplined monetary interventions, foreign exchange market guidelines, and structural tools like our aligned Cash Reserve Ratio, we are ensuring that businesses have a predictable environment to expand, hire, and innovate.”

    The central bank chief also highlighted ongoing structural engagements, noting that the BoG has formalized bridges with industry leaders including the launch of a dedicated CEO Forum and inviting business representatives to observe Monetary Policy Committee operations to ground policy decisions in real-time market realities.

    Private sector demands “bold leadership” to secure the reset

    Despite the highly encouraging numbers, prominent captains of industry at the summit warned against complacency. Renowned traditional leader and corporate leader Togbe Afede XIV addressed the summit with a powerful call to action, urging state leaders to anchor these statistical victories in deep, institutional accountability and real-world relief for local businesses.

    “While we celebrate these macroeconomic milestones, we must remember that numbers alone do not build a sustainable nation,” Togbe Afede XIV remarked during his address. “Sustaining Ghana’s economic recovery requires bold, unyielding leadership. We must actively transform business and governance structures, eliminate public waste, and ensure that our US$100 billion status directly translates into competitive credit rates, affordable energy, and real growth for indigenous businesses.”

    The government maintains that its current fiscal path is designed to do exactly that. The Ministry of Finance recently pointed to aggressive expenditure controls—including cutting the size of the central government, enforcing mandatory commitment authorization regimes across state ministries, and cleansing the public payroll of tens of thousands of unverified entries as proof of its commitment to long-term sustainability.

    As the final stages of its IMF Extended Credit Facility reviews conclude, Ghana is positioned to transition smoothly toward a independent Policy Support Instrument framework, solidifying its stance as an economic sovereign capable of managing its own destiny.

     

     

     

     

     

     

     

  • AfDB to intensify investments in clean cooking across Africa

    AfDB 

     

     

    The sprawling informal settlement of Mukuru on the outskirts of Nairobi holds powerful tales of how an innovative gas energy company is providing clean cooking solutions and restoring dignity to households in the Kenyan capital.

     

    Aurelia Aureh, now boasts of smoke-free cooking, following years of using charcoal, which poses a health hazard because of the emission of potent fumes. She usesM-Gas, for low- income households, which employs a pay-as-you-cook model, allowing them to access the commodity in small amounts.

     

    “Before I used to cook outside with charcoal, which was very expensive. I would spend about Ksh50 (about $0.38) on charcoal for any one cooking episode,” she said. Now she spends less than half that amount with less hassle and all the benefits.

     

    Aurelia is elated at the convenience that comes with using M-Gas. “I do not have to go to the gas vendor looking for the gas when it runs out, as M-Gas monitors my usage and replaces my gas before it runs out. I simply continue to pay for my immediate cooking needs from where I am (using M-Pesa mobile money). In addition, it is safe. I don’t have to worry about my children playing with it because it has tight security features.”

     

    M-Gas provides affordable clean cooking gas for low-income households in Kenya. Initiated in 2019, M-Gas uses smart meter technology to enable users to access liquid petroleum gas (LPG) in quantities they can afford for the moment, for even as low as Ksh10 (about $0.077), payable using mobile money. The technologysimplifies LPG access for consumers who cannot afford the upfront cost of gas and LPG cylinders, thus addressing the highcost- barrier of switching to and purchasing LPG.

     

     

    This caught the attention of the African Development Bank’s Vice President for Private Sector, Infrastructure and Industrialisation, Solomon Quaynor, who was in Nairobi at the end of July 2024 to explore opportunities for collaboration in the country’s clean cooking sector.

     

    He met with Martin Kimani, the CEO of M-Gas. They discussed priority areas of partnership towards advancing Africa’s energy transition. He also met with Circle Gas, the parent company of M-Gas. In particular, Board Chairman Carey Ngini, and Board member Michael Joseph. Circle Gas has strategic partnerships with institutional partners, including Safaricom (connectivity and M-Pesa payment solutions), and Total Energies (LPG cooking cylinders).

     

    Quaynor visited Mukuru, where he interacted with Aurelia, and other residents.

     

     

    Mercy Karimi, another Mukuru resident, tells how before using M-Gas, her three-year-old daughter often got chest infections and breathing problems because of the dangerous fumes from kerosene, which she used for cooking. “But since I started using M-Gas, my child no longer has that problem, and can stay for a long time before visiting the hospital,” she said.

     

    Clean cooking is one of the Bank’s priority areas. In May this year, the Bank pledged $2 billion over 10 years towards clean cooking solutions in Africa—a move toward saving the lives of 600,000 mainly women and children, lost annually from the effects of secondary smoke from partial combustion of biomass, fuel wood and charcoal.

     

    Despite improved access to electricity in recent years, there is little progress to adopt clean cooking, with around a billion people across Africa still cooking over open fires and basic stoves. Using charcoal, wood, agricultural waste, and animal dung as fuel affects the lives of millions of people – mostly women and children – as they inhale toxic fumes and smoke while cooking.

     

    Quaynor also toured the M-Gas depot in Ruaka, a suburb located north-west of Nairobi. Here, he was taken through the paces of how the smart metered innovation works. He interacted with households and even business owners, to seek their views on the M-Gas innovation.

     

     

    Stephen Njogu, a resident of Ruaka, has been using M-Gas for two years now.

     

    “This system is cheaper because I can buy gas even with the little money I have, compared to the normal gas for which I have to buy the whole cylinder of gas. Secondly, M-Gas is clean, no smoke while cooking, unlike before when I used kerosene, which would emit dangerous smoke,” he said.

     

    Faith Kamau, who runs a small local eatery in Ruaka is another supporter. She is now, able to serve her customers without the fear of gas running out unexpectedly. “I am able to cook many dishes using little energy. I have been able to save some money, which I have diverted to buying more food stock. Besides, in case of any problem with the cooking system, I alert the M-Gas Customer Experience Centre, which responds very fast with advice on how to deal with the problem. I like M-Gas solution so much that I also have it at home”.

     

    According to Quaynor, such experiences are inspiring the Bank to intensify efforts to increase investments towards affordable clean cooking solutions for millions of Africans who still lack access. “The Bank is working withthe private sector, a key player in the energy transition, to catalyze investments in the sector to address energy povertyin line with Sustainable Development Goal 7 (SDG7) on affordable, reliable, sustainable and modern energy for all,” he emphasised.

     

    The Bank’s pledge of $200million per year represents an important contribution to the $4billion per year needed to allow more African families to have access to clean cooking by 2030.

     

    Source: afdb

     

  • Africa offers attractive investment opportunities for Japanese firms, say AfDB leaders.

     

    African development bank

     

     

     

    Africa presents a compelling investment destination for Japanese firms, with high growth potential and the African Development Bank’s strong support to manage risks, African Development Bank Group leaders have stressed at the recent Japan-Africa Business Forum in Tokyo.

     

    “Africa has huge private sector opportunities. The continent offers some of the highest returns globally,” said Prof. Kevin Chika Urama, Bank Group Chief Economist and Vice President, in a presentation highlighting Africa’s abundant renewable energy potential, and the need for strategic investments in green minerals and value addition. “Smart investments in Africa are good business — doing well by doing good,” he stressed.

     

    Dr. Kevin Kariuki, Vice President for Power, Energy, Climate and Green Growth, highlighted Japan’s competitive advantage in geothermal technology. “90% of all the turbines in Kenya are from Japan, starting with Mitsubishi,” he noted. Kariuki also positioned Africa as a solution to Europe’s energy challenges, with planned interconnections to export power and hydrogen.

     

    The forum was organized by the African Development Bank and Keizai Doyukai, the Japanese Association of Corporate Executives, with support from Japan’s Ministry of Finance.

     

    Bank leaders underscored the institution’s commitment to making investing in Africa more attractive. “We have facilities within the Bank to try and de-risk these projects,” said Kariuki, citing the Sustainable Energy Fund for Africa’s (SEFA) support for the Kom Ombo and Kairouan solar projects amid escalating costs.

     

    Kazuko Nagura from Japan’s Ministry of Economy, Trade and Industry (METI) announced plans to hold the third Japan-Africa Public-Private Economic Forum later this year. The event will offer Japanese companies an opportunity to travel to Africa to undertake business development and networking. Nagura also made reference to the ministry’s efforts to support Japanese business ventures in Africa such as theAfDX program and Expo 2025 Osaka, Kansai planned for next year.

     

    During a panel discussion on investing in African startups, Vice President for Private Sector, Infrastructure and Industrialization Solomon Quaynor stressed the potential of the Fourth Industrial Revolution  to drive productivity improvements and deliver services to the base of the pyramid. “The idea is to use technology to increase profitability through efficiency, so you’re delivering value for which all segments of society are actually paying,” he explained.

     

    Quaynor highlighted the Bank’s initiatives to develop Africa’s human capital and startup ecosystem, including partnerships with tech giants: “We have a program with Intel to train nine million Africans in artificial intelligence and a coding for employment program to upskill up to 50 million youth.” He said the Youth Entrepreneurship Investment Banks(YEIBs) will further support tech-enabled companies and enhance the collaboration with & Capital, a new Africa-focused impact fund endorsed by Keizai Doyukai.

     

    Misako Takahashi, Deputy Director-General of the Middle Eastern and African Affairs Bureau at Japan’s Ministry of Foreign Affairs, highlighted TICAD as a platform for co-creating innovative solutions for growth and to discuss Japan and Africa’s shared future.

     

    Yacine Fal, the Special Representative of the African Development Bank’s President to the Africa Investment Forum, showcased the platform’s role as a premier conduit for investment into Africa’s agriculture, energy, transport, healthcare and ICT sectors, among others. She noted the successful participation of Japanese investors and business leaders including those from Keizai Doyukai at the 2023 Market Days held last November in Marrakech.

     

    Keizai Doyukai, and the African Development Bank reaffirmed their commitment to work together to strengthen business ties between Japan and African countries. The two jointly organized the business forum to increase interest in African business and promote a better understanding of the Japanese private sector ahead of TICAD 9.

     

  • Electricity access in Ghana grew by 27% in 10years– report

    Electricity access in Ghana grew by 27% in 10years– report

    Adnan Adams Mohammed

    A African Development Bank (AfDB) report has indicated that, access to electricity in Ghana rose from 56.5 percent in 2012 to 83.5percent in 2021, translating into a 27% in a period of about 10 years.

    The current access rate of Ghana is estimated to be about two times of African Development Fund (ADF) beneficiary countries average rate.

    According to an AfDB report on Ghana’s power development, it estimated that, in urban areas nearly 94% of the population has access to electricity, and in rural areas, the share is 70%. This is three times higher than ADF countries’ average.

    “The share of the population with access to clean cooking solutions also increased markedly, growing from 16.4% in 2012 to 24.9% in 2021. This progress consolidated Ghana’s position as one of 10 countries in Africa whose access to electricity rate is the highest”, data contained in the report released, last week, noted.

    Between 2012 and 2021, Ghana almost doubled its total installed electricity capacity, leaping from 2.9 GW to 5.1 GW and generating more than 15,000 GWh. This includes an increase of installed renewable capacity from 1.2 GW to 1.7 GW, with hydropower taking the lion’s share (99%).

    The share of renewables in the energy mix declined, however, producing a fall in production efficiency, with more kilograms of CO2 emitted per dollar of Gross Domestic Product (GDP) in 2021 than in 2012.

    The upsurge in capacity and skills, which resulted in part from a rise in independent power producers’ generation of electricity, the report stressed, has allowed Ghana to resolve the major energy crisis that hit the country from 2012 to 2016 as a result of erratic rainfall that crippled hydroelectricity production in the Lake Volta region.

    The report however said electricity distribution remains a challenge in the country.

    Starting in 2017, the increase of generation capacity supplied Ghana with more power than was in demand (demand peaked at about 2.5 GW between 2012 and 2020).

    This absorption gap reflects pervasive shortfalls in the grid, which is hampered by inefficiencies in the distribution network and by skills gaps, especially in the installation and maintenance of energy equipment. Redressing these shortfalls, the report said, is critical to reducing the import of skills, which increases the cost of doing business in Ghana.

    As electricity losses through transmission, distribution, and collection are concerned, Ghana’s performance increased from 21.5% in 2012 to 22.6% in 2021, which is worse than ADF countries as a whole.

    To address this, the report said, government undertook certain governance-related actions, notably restructuring the legacy debts of the state-owned Electricity Company of Ghana (among other things, clearing its arrears) and reforming electricity tariffs to stimulate competition and encourage the private sector to participate in distribution.

    The Bank also shaped a more efficient distribution system within the framework of its support for the energy sector.

    AfDB said it will continue to support Ghana’s objective of supplying its citizens with universal access to energy by better generating and distributing electricity, among other things by  increasing off-grid connections in the country’s northern regions.

    The Bank is also standing with Ghana as the country manages climate risks, channels resources for adaptation, and transitions to green energy.

    “To reach its goals in this area, Ghana needs more investments in renewable energy-not just from one funder, but from many”, it said.

    In January 2022, the African Development Fund granted $27.4 million for the Ghana Scaling-Up Renewable Energy Programme. This contribution leveraged another $28.5 million in co-financing from the Climate Investment Funds and parallel financing of USD 13.3 million from Switzerland’s Secretariat for Economic Affairs.

    The programme will generate an estimated 111 MWh of renewable energy each year, thus contributing 13.5% of renewable energy to Ghana’s energy mix (excluding hydropower) and mitigating greenhouse emissions of 0.7 million tons of CO2-equivalent.

    The Bank’s ongoing Affirmative Finance Action for Women in Africa programme-to which the Green Climate Fund contributed $20 million-is another investment in clean energy.

    The programme is expected to reduce emissions by replacing diesel, fuelwood, and charcoal with renewable fuels, used sustainably. This operation and others like it will help supply the efficient, affordable, and sustainable energy that Ghana needs.