It was in Nairobi that the annual general meetings of the African Development Bank (AfDB) were held. The reform of the international financial architecture was on the agenda.
Yes, but be careful, this reform cannot avoid taking climate challenges into account. Africa would need $213 billion per year until 2030 for sustainable development. So how can we meet these challenges?
The AfDB has defined its new strategy for the next ten years. For this, its capital increased from 201 billion to 318 billion, an increase necessary to maintain the triple A rating of the institution, the key to borrowing on the financial markets at low rates.
The proposal to integrate natural wealth into the GDP of African states was also debated. The continent’s reserves of arable land, its mining resources or renewable energies are not taken into account, lamented the President of Kenya, William Ruto.
The new strategy is based on two major objectives: accelerating inclusive green growth and fostering prosperous and resilient economies. To achieve these objectives, the Bank is focusing on several priorities: lighting up Africa and supplying it with modern and affordable energy. Ensuring food security through agricultural transformation. Improve the living conditions of women and young people and invest in human capital and sustainability.
Recognizing the crucial role of the private sector, the AfDB intends to mobilize resources from various sources, including private financing. It will strengthen its collaboration, prioritizing investments in businesses, value chains and SMEs. This financial strategy aims to triple private sector financing by 2033 and strengthen its financing capacity through innovative mechanisms.
Africa also wants to free itself from financial markets. The AfDB Board of Governors has called for the creation of an African rating agency. The objective is to establish a new culture of evaluation which takes into consideration the different specificities of African economies. This will save more than $75 billion due to “unfair” rating by international rating agencies.
As we will have understood, as it celebrated its sixtieth anniversary, the African Development Bank has resilience as its watchword. The Covid-19 pandemic, food insecurity, the debt crisis, conflicts and political instability, and climate change cannot make us forget that Africa is full of assets that make it the continent of opportunities.