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The African Development Bank Group (www.AfDB.org) is committed to working with Africa’s regional and continental institutions to address the continent’s biggest development challenges. This was the key message when Bank President Dr. Akinwumi Adesina met with the heads of intergovernmental organizations and African development finance institutions on May 25 in Sharm el-Sheikh, Egypt.
Entitled “Mobilizing Capital for Smart Infrastructure and Deeper Integration”, the meeting was the second of its kind organized by the Bank in the margins of its annual meetings and provided an opportunity for participants to share key concerns and discuss opportunities for cooperation .
Mr. Adesina reminded the meeting of the crucial role that African regional institutions play in promoting Africa’s political, economic and social development and stressed that the continent needs to achieve double-digit annual economic growth to eradicate poverty. “We must ensure that Africa is at the center of global debates. Africa must be given its rightful place in leading international bodies. But in addition to a place, we also need resources,” he said.
To achieve this, the bank and regional and continental institutions must work together. In particular, the African Continental Free Trade Area (AfCFTA), a market of 1.4 billion consumers with a combined GDP of USD 3.4 trillion, should be used to create value chains to enhance Africa’s role as a supplier of raw materials for other countries to change. development. The bank chief called on African regional organizations to work with individual countries to ensure Africa takes advantage of the huge potential market for electric cars, for example (estimated at $34 trillion). Adesina pointed out that it would be cheaper to produce lithium-ion batteries in Africa than in the United States or China.
Infrastructure, peace and security for better integration
Regional institutions, in particular regional economic communities and regional banks, have welcomed the bank’s investments and are calling for more inclusive projects in the near term. The Abidjan-Lagos Corridor Highway Development Project, the railway linking Tanzania, Burundi and the Democratic Republic of Congo, and the Kinshasa-Brazzaville Road-Rail Bridge Project are just a few examples of projects financed by the Bank.
Albert M. Muchanga, African Union Commissioner for Trade and Industry, outlined the Union’s expectations for funding, including for its specialized institutions. “We are mobilizing the private sector. We are working to establish the Association of African Stock Exchanges and, together with the African Development Bank, we have launched a study on the drivers of Africa’s development, which will identify key actions needed to achieve economic growth of 7-10%,” he said. said.
Secretary-General of the Union of the Arab Maghreb, Taïeb Baccouche, called for more emphasis on young people to save them from the mirage of emigration. An agropastoral project is now being rolled out to create more jobs for young people in the Maghreb. Mr Baccouche said that eliminating visas would be a step forward for the proper functioning of the AfCFTA.
Elias M. Magosi, executive secretary of the Southern African Development Community (SADC), said infrastructure is a major concern for SADC and energy infrastructure in particular.
Peter Mathuki, Secretary General of the East African Community, stressed the need to develop integrated rail networks and strengthen public-private partnerships. Ms Ngakono Marie Thérèse Chantal Mfoula, Commissioner for Infrastructure at the Economic Community of Central African States, pointed out that the region has made progress towards integration.
Omar Alieu Touray, Chairman of the Economic Commission of West African States (ECOWAS), underlined the fear in the region over peace and security issues. He commended the African Development Bank for supporting the operationalization of a regional early warning mechanism. With a cumulative GDP of $662 billion, the Common Market for Eastern and Southern Africa (COMESA), which includes both SADC and EAC countries, has identified more than 69 banking and multilateral institutions willing to invest in projects that will deepen integration, according to its secretary-general Chileshe Kapwepwe.
Mobilizing the private sector for infrastructure integration
Other themes discussed at the meeting included peace and regional security, health, food security and the debt burden that hampers Africa’s development.
The Bank is promoting the establishment of an African stability mechanism to help the continent build a “cushion” of resources to absorb external shocks. It will also continue to work through the Africa Investment Forum to mobilize the private sector in Africa and elsewhere in support of large-scale projects.
The Africa Investment Forum will hold its next market days in November in Marrakesh, Morocco. Dr. Adesina concluded by saying that the private sector, the African diaspora and African development finance institutions should help make the African Union financially autonomous. He promised Bank support for this purpose.
“The hand that gives is bigger than the hand that receives, and we must work to mobilize individual savings to finance development,” said Serge Ékué, president of the West African Development Bank.
Marie-Laure Akin-Olugbade, the bank’s vice president for Regional Development, Integration and Services, expressed her satisfaction with the discussions. “The meeting is a unique platform that gives us the opportunity to collaborate, exchange and explore ways to channel resources effectively, share best practices and coordinate our policies and advocacy for Africa’s development and regional integration “, she said.
Other participants included Hanan Morsy, Deputy Executive Secretary of the UN Economic Commission for Africa; Nardos Bekele-Thomas, CEO of the African Union Development Agency (AUDA-NEPAD); Alain Ebobissé, CEO of Africa50; Boitumelo Mosako, CEO of the Southern African Development Bank (DBSA); Admassu Tadesse, emeritus president and group director of the Trade and Development Bank Group (TDB).
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
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