Arab Bank to step up funding support for Africa
The Arab Bank for Economic Development in Africa (BADEA), will over the next 50 years, focus on enhancing its own efforts and mobilising additional funding support from other financial institutions in the Arab region for the development of Africa.
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At a news conference in Accra yesterday, the President of BADEA, Dr Sidi Ould Tah, said the bank would officially unveil the new vision at the launch of the Arab-Africa Financial Consortium (AAFC) in Accra on Sunday, July 21, 2024.
BADEA is marking its 50th anniversary celebrations this year on the theme: “BADEA Prosperity Partnership: 50 Years of Africa-Arab Cooperation”.
The Arab-Africa Financial Consortium, Dr Tah said, would be launched at a "Leaders' Breakfast" under the patronage of President Nana Addo Dankwa Akufo-Addo, along with participating African Heads of State, the AU Chairperson, and governments attending the African Union Mid-Year Coordination Meeting in Accra on Sunday.
Dr Tah said the heads and representatives of multilateral financial institutions from Africa and the Arab region were expected to serve as a significant alternative pool of funding for African states and private sector entities.
Address
Addressing the media, Dr Tah said BADEA stood ready with its current capital base of $20 billion to support projects, and that a special session with private sector operators had been organised on how those funds could be accessed.
“We do believe that this (Arab-Africa Financial Consortium) will be a game-changer in terms of resource mobilisation in the interest of the continent, and also in developing and supporting direct investments to support the development of the continent,” he said.
He added that "the bank has been funding projects since its inception from its own resources, and that has been possible because of the generosity of its shareholders who have always increased the capital of the bank”.
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BADEA’s President referred to the successful launch of its first bond in the capital market, adding that “the bank intends to be a regular issuer on the capital market to be able to raise more resources for the African continent at very competitive pricing”.
Several heads of state and business leaders from the Arab world and the African continent are billed to attend the 50th anniversary celebration and the ceremony to launch the AAFC, which is a side event of the AU’s sixth Mid-Year Coordination Meeting, both of which take place on Sunday.
Relevant relationship
The Executive Director of Africa Prosperity Network, Gabby Otchere- Darko, said the relationship between Africa and the Arab world had become more relevant in the scheme of the mutual benefits for the two sides.
“Sunday is not just about celebrating 50 years of Arab-Africa cooperation; more importantly, it’s opening a new stronger chapter of cooperation between the Arab world and Africa,” he said.
“It is important for us to realise that the last three years or so, it’s been a big challenge in Africa in terms of our capacity to fund our development on terms that are favourable to Africa.
“Maybe over the last 15 to 20 years, we’ve seen a shift to China for funding support for Africa’s development. But that shift also has its own challenges and limitations. What we are seeing is a situation of another significant alternative.
The Arab-Africa cooperation is already there, but what we are seeing is a strengthening of this relationship because there is a recognition that together, the Arab world and Africa can do more for each other,” he added.
Background
BADEA is a member of the Arab Coordination Group (ACG), a consortium of 10 Arab Development Institutions that leverage their collective resources and expertise to maximise development impact across the world.
Most recently in November 2023, the ACG pledged $50 billion in new investments towards Africa by 2030, demonstrating a strong commitment of the Arab partners towards the Africa region and its development priorities.