Abidjan, Ivory Coast — The African Development Bank’s Chief Economist, Prof. Kevin Chika Urama, said Tuesday that Africa is poised to play a central role in a future multipolar global economic order. He attributed this potential to reforms in global financial architecture, strengthened regional integration, and efforts to curb illicit financial flows, which could help the continent retain over $587 billion annually, according to the AfDB’s African Economic Outlook 2025 launch.
Prof. Kevin Chika Urama, the African Development Bank’s (AfDB) Chief Economist and Vice President, outlined several key factors that could elevate Africa’s position in the global economic landscape. Speaking at the official launch of the AfDB’s African Economic Outlook (AEO) 2025 on Tuesday, Urama emphasized that by curbing illicit financial flows, addressing profit shifting, and improving macroeconomic policy management, Africa could retain more than $587 billion annually. This amount is equivalent to three times the continent’s total external development finance inflows and could close the financing gap necessary for structural transformation, according to his remarks.
By curbing illicit financial flows, addressing profit shifting, and improving macroeconomic policy management, Africa could retain more than $587 billion annually.
Urama identified reforms in the global financial architecture and strengthened regional integration as critical enablers for Africa to gain greater agency in a multipolar world. He called for the development of regional capital markets and economies of scale to enhance Africa’s capacity to engage productively in global economic governance. The AfDB official also advocated for preferred procurement policies favoring African products and urged foreign companies to invest in manufacturing facilities within Africa rather than focusing solely on raw material extraction. These measures, he said, would help Africa move up global value chains and increase its influence in international trade.
The AfDB’s recent macroeconomic reports support Urama’s outlook on Africa’s growing global economic weight. Data show that 53 out of 54 African countries recorded positive growth in 2022, with the continent’s overall growth rate at 3.8 percent, despite global uncertainties. The AfDB’s Macroeconomic Performance and Outlook (MEO) report projects GDP growth rates of 3.8 percent in 2024 and 4.2 percent in 2025 for Africa, exceeding the projected global averages of 2.9 percent and 3.2 percent, respectively. According to the AfDB, up to 41 African countries are expected to achieve growth rates of at least 3.8 percent in 2024, with 13 countries growing more than one percentage point faster than in 2023.
Urama also highlighted the importance of structural transformation and industrialization as central to Africa’s future role in the global economy. He stressed the need to shift from raw-material exports toward manufacturing and higher-value-added production. In his AEO 2025 speech, he called for scaling up trade in local African currencies and operationalizing regional payment systems, such as the Pan-African Payment and Settlement System (PAPSS), to reduce dependence on external currency systems and increase trade autonomy. The Chief Economist further urged African countries to implement preferred procurement policies to stimulate demand for locally manufactured goods and services.
Financial architecture reforms are another area of focus. Urama argued that improving risk assessment and pricing for African economies would reduce the cost of capital and attract more investment. He called for accelerated domestic revenue mobilization through broadening tax bases and investing in digitalization and e-governance to enhance transparency and reduce illicit financial flows. The AfDB official also emphasized leveraging private financing, especially for climate-resilient and pandemic-proof projects, to mobilize resources for inclusive development.
Regional integration remains a priority, with Urama underscoring the need for a strengthened and well-capitalized African Union and rapid operationalization of the African Continental Free Trade Area (AfCFTA). He identified free movement of labor and capital, along with increased trade in local currencies supported by PAPSS, as key steps toward a more integrated and globally influential African market. The AfDB recommends effective coordination of fiscal and monetary policies to control inflation and fiscal pressures while boosting intra-African trade, particularly in manufactured products.
Governance and policy reforms are essential to this vision. Urama called for accelerated structural reforms to improve macroeconomic stability and attract investment. He emphasized institutional governance improvements, including anti-corruption measures and stronger regulatory frameworks, to enhance transparency and reduce illicit financial flows. The AfDB advises deploying timely monetary policy tightening in countries experiencing high inflation, while maintaining cautious policies where inflationary pressures are low. Digitalization and e-governance are also highlighted as tools to strengthen tax administration and domestic resource mobilization.
In the broader global context, Urama situates Africa’s prospects amid heightened recession risks and geopolitical tensions. He noted that Africa dominates the list of the world’s 20 fastest-growing economies in 2024, with 11 African countries included. Despite a confluence of global shocks, all five African regions are projected to maintain positive growth, reinforcing the continent’s role as a consistent growth pole. Urama framed these dynamics as part of a shift toward a more diffuse and multipolar global economic order, in which a unified and reform-minded Africa could assume a central role in shaping future global economic rules, norms, and value chains.
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