The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has warned that Africa can no longer depend on foreign aid and concessional loans as rising debt costs and shrinking development assistance continue to put pressure on public finances across the continent. Edun said African countries must now deepen regional investment, boost intra-African trade, and mobilise more private capital to sustain economic growth.
The minister gave the warning on Thursday at the 5th B2B Agribusiness Matchmaking Event held in Abuja. The meeting, which took place at the Transcorp Hilton, is part of the Arab Africa Trade Bridges Programme and was organised under the theme ‘Catalysing Arab Africa Trade: Unlocking New Frontiers in Food and Agribusiness Trade.’
Edun said many African economies are currently weighed down by heavy debt-servicing obligations that consume scarce resources that should be used for development. According to him, concessional financing and overseas development assistance have continued to decline, worsening the continent’s fiscal challenges. He referred to projections by the African Development Bank showing that aid to developing countries fell by nine per cent in 2024 and could drop by another 17 per cent in 2025.
He said this reality reflects a growing withdrawal of the global community from multilateral cooperation. The minister explained that although there is still some collaboration in areas such as public health and climate action, general economic assistance from developed nations is no longer as strong as it was in past decades.
Edun said Africa must respond to this trend by strengthening its internal economic links. He explained that the private sector has become the major source of investment, whether through foreign direct investment or domestic capital. He added that African governments must now focus on policies that attract private investors, support regional trade, and improve economic productivity.
“African countries are facing high debt burdens and large debt-servicing requirements that take away funds meant for public investment,” he said. “The global climate has tightened, and concessional financing is falling. It is the private sector that now provides the bulk of investment, and countries must position themselves to take advantage of this.”
The minister urged African nations to rely more on their productive capacity, grow their economies through value addition, and increase regional trade under the African Continental Free Trade Area. He said the continent must invest in processing, logistics, industrial growth, and other areas that improve competitiveness.
The Chief Executive Officer of Welcome 2 Africa International, Bamidele Seun Awoola, also addressed participants at the meeting. She said her organisation is working with partners to secure at least 10 major trade agreements worth a minimum of $100m between African and Arab markets. She said Africa–Arab trade has strong potential but is limited by low processing capacity, weak value-added production, and slow investment inflows.
Awoola said ongoing matchmaking engagements show that the $100m target may be exceeded. She explained that the organisation is focusing on partnerships that bring manufacturers and processors into Nigeria to support the country’s agricultural sector. According to her, Nigeria produces large volumes of raw agricultural commodities but must increase processing in order to create jobs and expand the economy.
She said the matchmaking event was designed to generate concrete outcomes rather than act as another ceremonial gathering. To achieve this, a detailed market analysis was carried out to identify specific goods that African countries, especially Nigeria, can supply competitively to meet growing demand in the Arab world. Only stakeholders with the capacity to deliver real investment and trade opportunities were invited.
Awoola expressed confidence that the engagements would lead to new partnerships, joint ventures, and economic opportunities aligned with Nigeria’s long-term development plans. She said interactions recorded on the first day of the meetings showed strong promise of meaningful commercial agreements.
A major outcome of the Abuja gathering was the signing of two Membership Agreements with Nigeria and Côte d’Ivoire. Nigeria’s agreement was signed through the Federal Ministry of Finance and formally brings the country into the Arab Africa Trade Bridges Programme.
The agreement covers initiatives aimed at improving export competitiveness, strengthening agribusiness value chains, supporting small and medium enterprises, and building national capacity in logistics, industrial development, and market access.
With global support declining and debt pressure mounting, stakeholders at the meeting agreed that Africa must intensify internal cooperation and build stronger economic ties with neighbouring regions. They noted that private sector investment, regional value chains, and intra-African trade will play a central role in shaping the continent’s future growth.
