AfDB calls for reform of global financial architecture to achieve SDGs in Africa

AfDB calls for reform of global financial architecture to achieve SDGs in Africa
AfDB calls for reform of global financial architecture to achieve SDGs in Africa

AA/Abidjan/Fulbert Yao

The President of the African Development Bank, Akinwumi Adesina, called on Wednesday in Nairobi for a reform of the global financial architecture, in order to “mobilize even more financial resources” to “achieve Africa’s sustainable development goals.”

Adesina was speaking at the official opening of the AfDB Annual Meetings being held from May 27 to 31 in Nairobi, Kenya under the theme “Africa’s Transformation, the African Development Bank Group and Reform of the global financial architecture.

As a perspective, the AfDB has introduced several financial innovations, according to President Adesina.

Last month, the institution issued $750 million in hybrid capital on the global capital market, a first for a multilateral development bank. This capital, which will be raised 3 to 4 times, will significantly increase the Bank’s lending capacity.

Adesina also welcomed the recent approval by the Executive Board of the International Monetary Fund (IMF) of the use of Special Drawing Rights (SDR) as hybrid capital, a proposal jointly developed by the AfDB and the Inter-American Development Bank .

“If the approved limit of 20 billion SDRs is channeled to multilateral development banks like ours, we will be able to provide at least 80 billion dollars in new financial support,” he said, calling on all shareholders to support this vision.

In the fight against climate change, the AfDB will mobilize $25 billion in climate financing.

The AfDB is also strengthening global partnerships for Africa. With the support of the G7, the Affirmative Financing Action Initiative for Women (AFAWA) facilitates women’s access to financing. AFAWA has approved $1.7 billion for more than 18,300 women-owned businesses and aims to reach $2 billion by the end of the year.

To support youth entrepreneurship, the AfDB has established Youth Entrepreneurship Investment Banks in collaboration with the French Development Agency. The first initiatives in Liberia and Ethiopia, with funding of $16 million and $12 million respectively, have already been approved, and other countries are preparing their submissions.

In partnership with the Islamic Development Bank and the French Development Agency, the AfDB is financing the i-DICE program in Nigeria, aiming to create 6 million jobs and add $6.4 billion to the economy.

Finally, the AfDB, the Africa 50 investment platform and the African Union launched the Alliance for Green Infrastructure in Africa (AGIA), aiming to mobilize $10 billion for green infrastructure and accelerate green transitions on the continent.

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