By zainab.joaque@awokonewspapersl.com
Freetown, SIERRA LEONE – Renowned economist and development expert Professor Jeffrey Sachs has issued a bold message to African leaders: “Africa needs more debt—not less—but the kind that builds the future.”
Delivering a virtual keynote address on “African Multilateral Financial Institutions in the Emerging New World Order,” Sachs laid out an ambitious yet achievable vision for Africa’s rise as a global economic powerhouse—if the continent embraces bold investment, unity, and smarter financing.
“I believe the next decades are Africa’s turn for supercharged economic growth,” he declared.
Sachs, who leads Columbia University’s Center for Sustainable Development, drew powerful comparisons with Asia’s economic giants.
“There are three places in the world today with 1.5 billion people: China, India, and Africa,” he said. “China began its dramatic rise in 1980. By 2020, it had wiped out extreme poverty. That’s not theory—I’ve visited those places. They’re no longer poor.”
India, he noted, reformed later, but now enjoys the world’s fastest-growing major economy. “With 6–7% growth per year, its economy doubles every decade. That’s the power of sustained investment and good policy.”
Sachs argued that the time is now for Africa to follow a similar trajectory:
“From now to 2063—Africa’s 100th anniversary of unity—Africa can and should lead global growth.”
To seize this opportunity, Sachs said Africa must raise its investment rate from 20–25% to 40% of income. He outlined three priority areas to fuel this transformation:
- Education: The Gold Mine
“No investment pays higher returns than education,” he stressed. “Africa must invest massively in its children.” He urged a sharp rise in upper secondary school completion rates and a focus on building a skilled, entrepreneurial generation.
- Infrastructure: Build the Backbone
“Electricity, internet, transport—these aren’t luxuries, they’re development necessities,” Sachs declared. He predicted a construction boom across the continent as cities expand and physical infrastructure is modernized.
- Private Sector: Powering Innovation
“With people and infrastructure in place, Africa’s private sector will thrive,” Sachs said. He called for a continental industrial strategy—“Made in Africa 2035”—to spark innovation, manufacturing, and entrepreneurship.
Sachs was clear: Africa’s growth must be unified, not fragmented.
“This can’t be 55 separate national strategies. Infrastructure, energy grids, transport corridors—they must cross borders,” he said. “The African Union and the African Continental Free Trade Area must be at the center of this strategy.”
Tackling what he called a major misunderstanding in global finance, Sachs insisted:
“Africa needs more debt—not less—but the right kind of debt.”
He criticized short-term, high-interest loans that burden economies without building long-term value. Instead, he called for low-interest, patient capital with 20–30 year terms, ideally from multilateral banks and private partners.
He also took aim at institutions like the IMF and credit rating agencies:
“The IMF warns Africa not to borrow too much. That’s wrong. Rating agencies only assess risk of default—not the potential for development. Africa’s growth prospects are the highest in the world. That needs to be part of the financial equation.”
Sachs urged African nations to assert monetary sovereignty.
“Africa needs its own financial institutions,” he said. “A continental currency. A regional lender of last resort—not the IMF. Africa must control its own financial destiny.”
He also challenged Africa to diversify its international partnerships.
“The old partners are no longer reliable. Africa must strengthen ties with China, India, and the Gulf States. These countries understand development and are willing to partner on investment.”
Sachs concluded with an urgent message of belief and momentum:
“Plan for high growth. Expect it. Work for it. Do it at the continental level. Let Afreximbank, the African Development Bank, and others lead the way.”
“Africa needs more debt—but the smart kind: long-term, low-interest capital that can fuel the infrastructure, education, and industry Africa needs to become a high-income region by 2063. No question—it can be done. Even sooner.”
In Jeffrey Sachs’s view, Africa’s future is not a matter of possibility—it is a matter of preparation. The tools exist. The opportunity is real. What’s needed now is bold leadership, cross-border unity, and a financial strategy built for the long game. ZIJ/2/7/2025
