During a keynote address at the African Development Bank Group last month at the African Infrastructure Forum, Rufus N. Dardurty called on African and Caribbean countries to urge attractive action to “rethink economic growth” through bold and innovative home-made solutions.
Speaking at a high-level gathering held at the World Bank/IMF Spring Meeting margin in Washington, DC on April 25th, Darkortey outlined the vision of a “new development compact” centered on domestic resource mobilization and private sector development, quickly tracking the transition from low-middle-income status to low-middle-income status.
“Unless we change our current development financing model, Africa and the Caribbean could remain trapped in low-income positions for another 100 years,” Darkortey told attendees at Ronald Reaganville. His banking districts span Liberia, Ghana, Sierra Leone, Gambia and Sudan. “But with a new focus on smart, courageous reforms and homemade solutions, we can accelerate that transformation in just 30-50 years, as the Asian Tigers did.”
The forum, co-organized by SmartDev and Africa Canada Trade and Investment Venture (ACTACT), brought together senior policymakers, development finance leaders, and private sector actors, including Haiti’s finance minister Alfred Fils Metellus, to present a new agenda for infrastructure financing and comprehensive growth.
Darkortey stressed that sustainable growth requires the creation of a robust domestic economy driven by the mobilization of local resources and private sector development. “We must expand our financial space, modernize public financial management, and strengthen small and medium-sized businesses, particularly small and medium-sized businesses, which make up more than 90% of African businesses,” he explained.
According to Darkortey, increasing domestic revenue and supporting local businesses can unlock internal capital for healthcare, education, agriculture and infrastructure development, while improving the sustainability of sovereignty. “This approach is to turn low-income countries into middle and high-income economies, empowering young people, women and vulnerable communities while breaking the cycle of poverty,” he added.
The bank’s executive director presented rigorous statistics showing development gaps. Despite adding 1.9 million kilometers of roads since 1995, only 30% of African roads are paved, compared to 92% in East Asia. Electricity access remains limited at 58% in Africa and 82% in the Caribbean.
Investment patterns reflect these challenges. Africa invests only 3.1% of its GDP in infrastructure and 12% from private sources, while the Caribbean allocates 2.5% and only 5% private funding. In comparison, Asian countries invest 8% of their GDP, with 42% coming from private sector partners.
Darkortey has identified three structural barriers to development. Foreign control of the core industry. Low revenue collection. He proposed several public-private partnership approaches to address the funding gap. Build transport infrastructure arrangements. A fusion financial mechanism that combines public and private capital. An economic zone with targeted investment incentives. Sovereignty guaranteed a progressive repayment scheme for small and medium-sized enterprises.
“These are not borrowed blueprints. They are tools that are already working all over the world,” he said.
Darkortey called on African and Caribbean countries to learn from successful development models of Vietnam, Bangladesh, Ethiopia and the Dominican Republic. Vietnam currently exports $370 billion a year. Bangladesh has built a $42 billion garment industry, bringing 25 million people out of poverty. Ethiopia increased its exports by about six times, increasing road range from 8% to 65%. The Dominican Republic has increased its per capita GDP from $1,500 to more than $11,000.
“Remember this century, not because of aid dependence,” he concluded.
Darkortey also highlighted a project funded by the African Development Bank, which aims to provide renewable energy to Sahel’s 250 million people, highlighting the bank’s support for Ethiopia’s transformation into a net wheat exporter, as well as the financing strategy driving Africa’s transformation and development.
The forum featured a panel of well-known experts, including Isaac Solomon, Vice President of the Caribbean Development Bank. Dr. Chibamba Kanyama, US ambassador to Zambia. Senior president of the Gates Foundation and the World Bank Group.
The panel, moderated by Dr. Carline Noailes, co-founder and managing partner of Jesca Solutions, provided in-depth insight into unlocking private capital and expanding public-private partnerships. Collectively, the forum painted a wealth of pictures of what is possible when public policy and private companies unite to pursue shared goals.
