AfDB’s Akinwumi Adesina Updates African Leaders on Bank’s Financial Mobilization Successes

Dr. Akinwumi Adesina, President of the African Development Bank Group (AfDB), recently briefed African leaders on the Bank’s achievements in mobilising financial resources for the continent's development needs at the African Union.

Speaking to heads of state and government at the 6th Mid-Year Coordination Meeting of the AU in Accra, Ghana, Adesina detailed the Bank’s significant general capital increase from $201 billion to $318 billion, approved by the Board of Governors during the Annual Meetings in Nairobi last May.

This capital boost will enable Africa’s only AAA-rated financial institution to maintain its strong credit status and address the continent’s urgent and growing development requirements.

Adesina also highlighted collaborative efforts between the African Development Bank and the Inter-American Development Bank to develop a new financial model that allows the International Monetary Fund’s Special Drawing Rights to be channeled through multilateral development banks.

“I am delighted to inform you that following over two years of work, supported by the advocacy of the African Union, we succeeded,” Adesina told the meeting, attended by several heads of state and government and representatives of regional economic communities.

The year began with the African Development Bank successfully launching a globally acclaimed landmark $750 million hybrid capital, the first ever by a multilateral financial institution.

“By so doing, we created a new asset class for investors globally. The hybrid capital will be leveraged four times to allow the Bank to boost its lending capacity,” said Adesina.

He also briefed the leaders about the progress the Bank is making in spearheading global efforts to ensure Africa’s natural wealth is taken into consideration as a measure of Gross Domestic Product (GDP).

The Africa Financial Stability Mechanism, a Bank initiative to mitigate financial and other exogenous shocks to African economies, has also advanced. The African Union’s committee of 15 Ministers of Finance has approved the framework for the establishment of the mechanism.

Also, to enhance food security, the Bank is launching a $650 million Regional West Africa Rice Development program in collaboration with the Africa Rice Center. The initiative is expected to include one million farmers across 15 countries and produce 53 million tons of rice.

“In five years, West Africa will achieve self-sufficiency in rice. We know we can do it. Our work helped Ethiopia to become self-sufficient in wheat in under four years, turning it into a net wheat-exporting country. What is critical is strong political will,” the Bank Group head said, referencing the Bank’s flagship Technologies for African Agricultural Transformation (TAAT) program.

Adesina briefed the leaders on growing global confidence in the Bank.

“Last week, the African Development Bank was ranked as the most transparent development financial institution in the world by Publish What You Fund for its sovereign operations.” This is in addition to other impressive recognitions for the Bank and its concessional window, the African Development Fund.

He outlined other wins for the institution, including expanding electricity access to over 20 million people over the past five years and partnering with the World Bank to connect 300 million Africans to electricity by 2030.