“Africa is not the biggest problem in the world, it is the biggest opportunity”. Nicola Tyler
Sir: In 60 years, Africa’s economic and social transformation through the financial interventions of the African Development Bank (AfDB) has been tremendous and overwhelming, catalysing the continent’s prosperity and tapping its potentialities for a continental rebirth.
Resonating with Africa’s post colonialism needs of socio-economic reconstruction and transformation, restoring its glorious past devastated by massive exploitation and persecution, the AfDB under the leadership of Dr. Akinwunmi A. Adesina has maintained its AAA rating and authorised capital of over $318 billion, with nearly 2,000 staff serving all 54 African countries.
As the Africa’s premier development finance institution, it has been pioneering the pathways to the transformation of lives of the Africans. It has committed humongous funds for proactive measures against climate change, ensuring that food security is enhanced through adequate funding and technical backing. It has been creating and providing opportunities for the teeming people of Africa to be economically sound, ensuring gender equality in the financial operations of its mandate.
A true development partner, it stands for the financial vision that guarantees sustainable development of the region. It is a typical example of institutional phenomenon and impactful powerhouse for the reformation of Africa.
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The AfDB’s resources come directly from special contributions made by participating countries. It does not make individual loan but offers project financing to public and private entities. Its main objective is providing concessional resources with more advantageous conditions to African countries to boost their productivity and economic growth. The AfDB is one of the five multilateral development banks in the world. The others are the World Bank, the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank and the Inter- American Development Bank.
In its frantic efforts to offer Africa a new face lift in a global contest, in December, the African Development Bank and Italy’s Cassa Depositi e Prestiti S.p.A. (CDP) signed a new implementing agreement for cooperation through an investment platform to achieve the continent’s economic growth. The partnership framework between the two entities set up what is referred to as the Growth and Resilience Platform for Africa (GRAF).
Through GRAF, CDP and AfDB plan to jointly channel up to €400 million over five years through private equity and venture capital funds targeting food security, growth of local small and medium enterprises (SMEs) and sustainable infrastructures. GRAF also plans to mobilise additional funds from other sources to bring the pool of investment capital to a very huge amount.
In another impressive drive towards uplifting the continent higher, the AfDB has injected a whopping $300 million equity investment in Africa Finance Corporation to catalyse climate change. This investment is projected to contribute to the creation of over 1,600 full-time equivalent jobs by 2031, while also fostering regional integration and generating clean, reliable energy to power millions of African households. It is also expected to drive inclusive growth and expand economic opportunities for marginalised populations including women and rural communities.
The AfDB has actively been engaged in innovating investment mobilisation in Africa to foster economic development and social transformation of the people. The AfDB essentially exists to unite Africans, develop the continent, battle climate change, boost the people’s economy. The continental bank has also been involved in training young people, with 50% being women, in five strategic sectors- renewable energy, digital economy, agribusiness, blue economy, textile and clothing industry.
Making Africa a pride to all of us and exploring its development potentialities, the AfDB contributes to improving the daily lives of Africans by providing financial and technical support for projects aimed at strengthening agricultural production, investing in the sustainable management of water resources, in energy projects providing access to electricity for as many people as possible, industrializing the continent with sustainable, quality jobs and contributing to the economic integration of the continent’s countries, example with projects benefitting several countries.
In the past seven years, the gigantic operations of the bank have impacted directly on 400 million people. Under the eventful period, the AfDB has provided financing for over $44 billion in support of infrastructures. The bank has also supported the International Rice Research Institute (IRRI) since 1975. The 40-year partnership between AfDB and IRRI involves more than $26 million in grants for research, capacity building as well as infrastructures development research.