Explicating Some Misconceptions
Agenda 2063 is Africa’s strategic framework for inclusive economic growth and structural transformation. The continent is planned in detail on how to achieve this vision over a period of 50 years from 2013 to 2063; goals are also set. This Agenda packed with seven aspirations and twenty goals, which are aligned with the United Nations’ sustainable development goals that combine the social, ecological, and economic sustainability pillars. For a number of reasons, agriculture and African development are intertwined. One of the Agenda 2063 goals commits “to increase modern agricultural production and productivity,” implying agricultural growth is decisive for Africa’s transformation. However, the low agricultural development in the continent is linked to inadequate investments on the sector to stimulate sustained growth. The structural adjustment measures adopted to cut public spending at the end of the 20th century led to a decline in state-led agricultural initiatives in Africa. Policymakers are correcting the mistakes in the past, “Africa will take full responsibility for financing its own development,” as one of the 20 goals noted. Accordingly, it is imperative to emphasize the need for development-oriented financial institutions that support initiatives that have crucial developmental impacts. This article is mainly to explicate misconceptions regarding the roles played by public development banks, in general, and to provide evidence-based performance indicators on the success of current strategic reform plan of the Development Bank of Ethiopia (DBE), a reform plan aimed to strengthen the provision of cutting-edge development banking services Ethiopia.