ABIDJAN, Côte d’Ivoire, July 24, 2024 -/African Media Agency (AMA)/-The President of the African Development Bank Group, Mr. Akinwumi Adesina, has presented to the African Union the successes in mobilizing the financial resources needed to meet the continent’s development needs.
Addressing the Heads of State and Government on the occasion of the 6e Speaking at the AU’s biannual coordination meeting held in Accra, Ghana, Mr. Adesina recalled the recent increase in the Bank’s capital – from US$201 billion to US$318 billion – approved by the Board of Governors at the Annual Meetings held in Nairobi last May.
This approval will enable the Bank, Africa’s only AAA-rated financial institution, to preserve its status and respond to the continent’s urgent and growing development needs.
In other highlights, the President cited the joint efforts of the African Development Bank and the Inter-American Development Bank to develop a new financial model to channel the International Monetary Fund’s special drawing rights through multilateral development banks.
“I am delighted to inform you that after more than two years of effort, and thanks to the advocacy of the African Union, we have finally succeeded,” Mr. Adesina said at the meeting attended by several Heads of State and Government as well as representatives of regional economic communities.
The African Development Bank launched a US$750 million hybrid capital earlier this year, the first ever by a multilateral financial institution, which has been globally acclaimed.
“We have thus created a new asset class for investors around the world. This hybrid capital will be multiplied by four, which will enable the Bank to increase its lending capacity,” Mr. Adesina said.
He also briefed the leaders on the progress made by the Bank in the global effort to ensure that Africa’s natural wealth is included in the calculation of gross domestic product (GDP).
The African Financial Stability Mechanism, a Bank initiative aimed at mitigating exogenous financial and other shocks to African economies, also made progress. The African Union Committee of Fifteen Finance Ministers approved the framework for the mechanism.
In addition, to strengthen food security, the Bank has launched a $650 million West Africa Regional Rice Development Program in collaboration with the Africa Rice Center. About one million farmers in fifteen countries are expected to benefit from this program to produce 53 million tons of rice.
“In five years, West Africa will be self-sufficient in rice. We know we can do it. We have also helped Ethiopia through our work to become self-sufficient in wheat in less than four years, and a net exporter of wheat. What is needed is strong political will,” said President Adesina, referring to the Bank’s flagship program, Technologies for African Agricultural Transformation (TAAT).
The leaders present were also informed of the growing confidence in the institution.
“Last week, the African Development Bank was recognized as the most transparent development finance institution by Publish What You Fund for its sovereign operations.” This recognition is one of several equally remarkable for the Bank and its concessional window, the African Development Fund.
Mr. Adesina then presented other notable results, including the expansion of access to electricity to more than 20 million people over the last five years and the partnership signed with the World Bank to connect 300 million Africans to electricity by 2030.
L’initiative Desert to Power The Bank’s $20 billion solar facility aims to generate 10,000 megawatts of solar power to serve 250 million people in 11 Sahel countries, and the initiative is already bearing fruit.
“For example, the $890 million Mauritania-Mali electricity interconnection project is part of this initiative and will increase the use of clean energy and access to electricity for 2.7 million people,” he said.
Ghanaian President Nana Addo-Dankwa Akufo-Addo, in his capacity as host of the meeting, called at the opening ceremony for accelerated action to adopt plans to achieve the financial stability and economic integration needed to support the African Union’s Agenda 2063.
The President of the Islamic Republic of Mauritania, Mr. Mohamed Ould Ghazouani, current Chairperson of the African Union, announced that the AU plans to raise about $100 billion to support export-oriented businesses. He also stressed the absolute need to maintain effective and continuous coordination between the AU and African regional blocs, which is an indispensable basis for achieving continental integration and the objectives of Agenda 2063 to ensure inclusive and sustainable socio-economic development over a period of 50 years.
Distributed by African Media Agency (AMA) on behalf of the African Development Bank.
Source : African Media Agency (AMA)
2024-07-24 16:51:22
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