Africa needs $811bn annually to close development gaps – AfDB
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By Obas Esiedesa, Abuja
The African Development Bank (AfDB) has said that African countries will require about $811 billion annually to bridge development gaps and meet socio-economic needs.
The Director General, Nigeria Country Department of the AfDB, Dr. Abdul Kamara, disclosed this on Thursday at the 2025 Annual Conference of the Nigerian Economic Society (NES) in Abuja. He reaffirmed the Bank’s commitment to supporting African countries in achieving their development goals.
Kamara explained that 24 transition states, or countries with fragile economies, would need at least $210 billion annually to tackle their unique challenges.
Quoting the AfDB’s Mind the Gaps Report 2025, he said Africa’s overall financing needs for structural transformation are projected to rise to $495.6 billion per year, equivalent to about 17 percent of the continent’s 2024 GDP. The financing gap, however, stands at $402.2 billion annually, or 13.7 percent of projected GDP.
“For transition states, financing needs are estimated at $157.4 billion annually, with a gap of $144.1 billion. Accounting for climate change, water, and sanitation, the annual financing gap for Africa could increase by 69.1 percent, reaching $680.3 billion,” Kamara added.
Speaking to journalists, President of the Nigerian Economic Society, Prof. Adeola Adenikinju, commended recent economic reforms in Nigeria. He noted that the foreign exchange market has stabilized, oil production has improved, and fiscal discipline is being restored.
He added that the capital market has been “extremely bullish,” while the petroleum sector is witnessing stability, including exports of refined products.
“Those policies the government took early were bold and disruptive, but eventually good for the country,” he said. “However, significant concerns remain on the social front, particularly with poverty and unemployment.”
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