Arab–Africa Financial Consortium will ensure rapid development — President Akufo-Addo

President Nana Addo Dankwa Akufo-Addo has observed that the Arab Bank for Economic Development in Africa (BADEA) has played a key role in the development of Africa in the last 50 years.

He, therefore, expressed confidence that the establishment of the Arab-Africa Financial Consortium (AAFC) would yield even better outcomes from the relationship between the Arab world and Africa.

He said the AAFC needed to pay attention to and drive investment in human capital, infrastructure development, trade and investment growth, and women and youth empowerment to make the vision a reality.

“Over the past five decades, BADEA has been a beacon of hope, a catalyst for development, and a symbol of the enduring bond between our two regions. Since its inception in 1974, BADEA has been instrumental in fostering economic development and cooperation between African and Arab countries.

“It has played a pivotal role in financing and supporting numerous projects across the African continent, from infrastructure development to health care, education and agriculture.

“These projects have not only contributed to the socio-economic development of our nations and continent but have also strengthened the partnership between Africa and the Arab world,” President Akufo-Addo said.

The President was speaking at a Leaders’ Breakfast in Accra as part of the launch of the AAFC and BADEA’s 50th anniversary last Sunday.

President Akufo-Addo said BADEA’s commitment to Africa “is evident in its track record”, adding that “over the past 50 years, BADEA has financed over 700 projects in more than 44 African countries with a total value exceeding $6 billion”.

These projects, he said, “have created jobs, improved living standards and spurred economic growth across the continent”.

“BADEA has not only evolved to meet the expectations of the continent and shareholders, but also to demonstrate agility and responsiveness to meet development challenges from the COVID-19 response to becoming pledges in the Arab coordination group on food security, climate change and resilient infrastructure.

“Let us build on the successes of the past, and work together to address the challenges of the future. Let us strive to create a more prosperous, inclusive and sustainable future for all our peoples.

I call on all stakeholders, governments, the private sector, civil society and international organisations to join hands in this endeavour,” President Akufo-Addo said.  

The Chairman of the Board of Directors of the Arab Bank for Economic Development in Africa (BADEA), Dr Fahad Aldossari, assured African leaders, heads of the continent’s financial institutions, and business leaders that the newly established Arab-Africa Financial Consortium (AAFC) would do everything within its mandate to ensure that it achieved its set objective of promoting Africa’s rapid development over the next 50 years.

“Today is also a special day as we feel honoured and grateful to his excellency, President of Ghana, the African Union Champion of financial institutions who not only welcomed BADEA’s anniversary and hosted us in the beautiful city of Accra but also elevated the partnership and coordination of financial institutions to support Africa,” Dr Fahad Aldossari said.

“With His Excellency’s call to establish the Arab-Africa financial consortium following the successful launch of the African financial institutions' network last Friday, I can confirm that BADEA will spare no effort in ensuring this consortium succeeds in realising the vision of Arab-Africa financial institutions’ collaboration and coordination for leveraging of resources for the continent,” the BADEA Board Chairman added.       

Critical investments

Dr Adesina Akiwumi, President of the African Development Bank Group, for his part, indicated that there were five issues that the reinvigorated Arab-Africa partnership should focus on.

On top of the list, he said, was energy development, followed by the exploitation of the continent’s rich green mineral resources, mobilisation of support for green infrastructure in Africa, food security and ensuring that the new drive for Arab-Africa partnership revolved around the Africa Investment Forum initiative.

“In the last five years, because of our collective work together, we have been able to attract over 180 billion dollars in investment interest into Africa. So, I am fully confident that as we structure the Arab and African financial institutions' partnership around this (Africa Investment Forum) effort, we can deliver even more results,” Dr Adesina Akiwumi said.

The Arab Bank for Economic Development in Africa (BADEA) was established under the resolution of the 6th Arab Summit Conference in Algiers on November 28, 1973. The bank began operations in March 1975. BADEA is a financial institution owned by 18 Arab member countries of the League of Arab States (LAS) which signed its Establishing Agreement on February 18, 1974.

The bank is an independent international institution enjoying full international legal status and complete autonomy in administrative and financial matters. It is governed by the provisions of its Establishing Agreement and the principles of international law.

The Arab Coordination Group (ACG), an alliance of Arab development institutions established to promote and coordinate financial and technical assistance to developing countries, primarily in the Arab world and Africa, is partnering BADEA to launch the Arab-Africa Financial Consortium (AAFC).

The ACG comprises several key institutions, including the Abu Dhabi Fund for Development, Arab Bank for Economic Development in Africa, Arab Fund for Economic and Social Development, Arab Gulf Programme for Development, the Arab Monetary Fund, Islamic Development Bank, Kuwait Fund for Arab Economic Development, OPEC Fund for International Development, Qatar Development Fund, and the Saudi Fund for Development.

Several other key Arab institutions will also play an instrumental role in leveraging the partnership between the Arab and African countries through the establishment of the AAFC. Among them are the Abu Dhabi Investment Authority, SaudiExim Bank, UNIDO ITPO Office Bahrain, AIM Global Foundation, and the Arab Authority for Agricultural Investment and Development (AAAID).

The rest are the Public Investment Fund PIF, Halal Products Development Company, Emirates Investment Authority, Kuwait Investment Authority (KIA), Investment Corporation of Dubai, Qatar Investment Authority, Oman Investment Authority, Islamic Trade Finance Corporation (ITFC), and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).