African Development Bank Group to increase its financing capacity by over $70 billion as it launches new ten-year strategy

The African Development Bank Group unveiled its new ten-year strategy 2024-2033 today, a plan to confront Africa’s pressing challenges and help put the continent back on track for sustained economic growth and prosperity.

Unveiling the strategy during the banking group’s annual meetings in Nairobi, Kenya, the chairman of the African Development Bank Group, Akinwumi Adesina, said, “As Africa’s leading development finance institution and Africa’s solution bank, we are keenly aware that the next decade will be crucial for the transformation of therefore , as we celebrate 60 years of making a difference in the countries and lives of the people of Africa, we remain resolute in our determination to accelerate the support we provide to African countries.”

The aftermath of the Covid-19 pandemic has resulted in increased food insecurity and a burgeoning debt crisis across Africa. At the same time, the effects of climate change are intensifying and accelerating, alongside an increase in conflict and political instability. Compounded by a youthful demographic that is outstripping job creation, Africa is witnessing a significant exodus of its future workforce seeking opportunities abroad.

The strategy, approved by the board earlier this year, sets out decisive and urgent actions the bank will take to support African countries in navigating the unprecedented global and regional challenges. These actions will build on Africa’s many unique assets and restore momentum towards achieving the African Union’s Agenda 2063 and the UN’s Sustainable Development Goals, ultimately promoting sustainable growth.

Central to the strategic vision for 2024-2033 is the belief in Africa’s enormous potential for societal and economic transformation. Leveraging the youngest and fastest-growing workforce in the world, fast-growing urban markets, wealth of natural resources, and vast potential for clean energy, Africa is poised to drive sustainable growth and make significant contributions to global solutions over the next decade .

“The ten-year strategy outlines how the Bank will invest in Africa’s best asset: its vibrant young men and women. Africa’s population, the fastest growing in the world, presents the continent with an unparalleled demographic window,” Adesina said. .

The new strategy articulates a vision of a prosperous, inclusive, resilient and integrated Africa, underpinned by two key goals over the next decade: accelerating inclusive green growth and fostering prosperous and resilient economies. With an emphasis on sustainability, the bank will strive to balance environmental concerns, justice and economic progress.

Building on the past decade of successful High 5 implementation, the bank aims to accelerate and scale up its efforts, focusing on transformative projects with far-reaching impacts. In order to optimize results and at the same time manage risks, the bank will streamline its operational model for increased flexibility and efficiency. The Bank’s high 5 operational priorities listed below are integral to the achievement of these objectives:

Light up and power Africa: Promote universal access to affordable modern energy. Feed Africa: Ensuring food security through agricultural transformation. Industrializing Africa: Catalyze manufacturing as a critical driver of job creation. Integrate Africa: Promote regional integration and value chains for a more coherent economy. Improve the quality of life: Improve living standards, especially for women and youth.

Key cross-cutting priorities include promoting gender equality, investing in young people, responding to climate change and investing in climate action, supporting fragile states and promoting good governance and economic stability.

The bank sees the private sector’s central role in driving Africa’s transformation. Over the next decade, it will strengthen cooperation with the private sector and prioritize investments in enterprises, value chains and micro, small and medium-sized enterprises, especially those led by women and youth.

The scope and urgency of the challenge will require greater resources than before. The bank is committed to mobilizing resources from various sources, including domestic revenues and private financing. It aims to triple private sector financing by 2033 while strengthening its financing capacity through innovative mechanisms. In response to calls for multilateral development banks (MDBs) to maximize the potential of their balance sheets, the Bank will pursue various options to increase its financing capacity over the life of the ten-year strategy. Measures include sustainable hybrid capital, risk transfers and the re-channeling of significant portions of the International Monetary Fund’s Special Drawing Rights through multilateral development banks.

The strategy outlines how the Bank will respond to the call for MDBs to rapidly scale up their efforts to respond to African countries’ priorities and significant ambitions and tackle global and regional challenges affecting the people of Africa. MDBs are critical to addressing the enormous global and regional challenges facing the world. They are a valuable source of cheap financing, technical knowledge and political advice for emerging and developing countries.

Highlights of the strategy:

Investing in women and young people: The 10-year strategy outlines how the bank will invest in Africa’s best asset: its vibrant young men and women. Africa’s population, the youngest and fastest growing in the world, presents the continent with an unparalleled demographic window. The Bank will address disparities and promote inclusivity by empowering women and youth so that they can contribute meaningfully to sustainable economic growth and prosperous societies. Climate adaptation: Recognizing Africa’s vulnerability to climate change, the Bank will promote low-carbon development pathways in line with the Paris Agreement while protecting biodiversity and nature. Supporting fragile states and building resilience: Amid increasing conflicts, fragility and political instability in Africa, the bank will intensify its efforts to help fragile countries. Particular emphasis will be placed on tackling cross-border challenges and reducing the isolation of inland and remote areas. Promotion of good governance: The Bank emphasizes the importance of economic governance, including the mobilization of domestic resources, transparent financial management and anti-corruption measures. Sustainable debt management practices will also be prioritized to ensure long-term financial stability.

Read the ten-year strategy 2024-2033 here

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