He blamed weak rule of law, crushing debt burdens, and predatory “vulture funds” exploiting fragile legal systems for the crippling gap.

Speaking to over 1,200 lawyers, judges, and officials at the Kenya Law Society’s Annual Conference in Diani, Adesina linked Africa’s economic struggles directly to governance failures.

He described how vulture funds buy discounted national debt, then aggressively sue vulnerable nations for full repayment plus inflated interest and fees through legal loopholes. “When Africa stands for the rule of law, the world will stand with Africa,” Adesina declared, framing justice as the bedrock of prosperity.

The AfDB chief drew a clear line between independent courts, transparent public finance, and attracting vital capital. “Evidence suggests foreign direct investments move more to countries that have political stability, stable democracies, transparency, and low levels of corruption,” he stated. Key drivers also include strong regulatory frameworks, public accountability, and respect for intellectual property rights – areas where many African nations lag.

Adesina urged immediate, concrete reforms: strengthen judicial independence and transparency, rewrite natural resource laws to benefit communities not elites, establish sovereign wealth funds, and build robust African arbitration systems to settle disputes fairly locally.

Can Africa transform its legal systems into economic engines? Adesina pointed to successes: AfDB-backed commercial courts in Rwanda and Côte d’Ivoire slashed dispute resolution times, unlocking over $1 billion in investment.

Seychelles, after Bank-supported constitutional reforms mandating parliamentary approval for sovereign borrowing, saw its debt-to-GDP ratio plummet from over 100% to below 55%. Similar procurement and debt transparency reforms are safeguarding funds in Kenya.

Source: Newsghana