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The AfDB is calling for reform of the global financial architecture to achieve the SDGs in Africa

AA/Abidjan/Fulbert Yao

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

Adesina was speaking at the official opening of the AfDB Annual Meetings held from May 27 to 31 in Nairobi, Kenya under the theme: “African Transformation, African Development Bank Group and Global Financial Architecture Reform.

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

Last month, the institution launched a US$750 million hybrid capital in 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 credit capacity of the bank.

Adesina also welcomed the recent approval by the Executive Board of the International Monetary Fund (IMF) for 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 transferred to multilateral development banks like ours, we will be able to provide at least $80 billion in new financial support,” he said, urging all shareholders to support this vision.

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

The AfDB is also strengthening global partnerships for Africa. Supported by the G7, the Affirmative Finance for Women (AFAWA) initiative promotes women’s access to finance. 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 in cooperation with the French Development Agency established the Youth Entrepreneurship Investment Banks. 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 to submit them.

In partnership with the Islamic Development Bank and the French Development Agency, the AfDB is financing the i-DICE program in Nigeria, which aims 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 Africa Green Infrastructure Alliance (AGIA), which aims to mobilize $10 billion for green infrastructure and accelerate green transitions on the continent.

Source: AA

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