By Bright Philip Donkor
The President of the Arab Bank for Economic Development in Africa (BADEA), Dr. Sidi Ould Tah, has announced that the bank will over the next 50 years focus on enhancing its own efforts, and mobilizing additional funding support from other financial institutions in the Arab region for the development of Africa.
Briefing the press yesterday at Kempinski, Accra, Dr. Sidi Ould Tah disclosed that BADEA would officially unveil this new vision when it launches the Arab-Africa Financial Consortium (AAFC) in Accra on Sunday, July 21, 2024.
It is part of its 50th-anniversary celebrations under the theme “BADEA Prosperity Partnership: 50 Years of Africa-Arab Cooperation.”
The Arab-Africa Financial Consortium will be launched at a “Leaders’ Breakfast”, to be attended by African heads of state and governments participating in the African Union Mid-Year Coordination Meeting in Accra on Sunday, as well as heads and representatives of multilateral financial institutions from both Africa and the Arab region.
Ready
Dr. Sidi Ould Tah stated that BADEA stands ready, with its current capital base of US$20 billion, to support projects.
“We believe that the Arab-Africa Financial Consortium will be a game-changer in terms of resource mobilization in the interest of the continent and in developing and supporting direct investments to support its development,” he stressed.
He mentioned that the bank had been funding projects since its inception from its own resources. According to him, “that has been possible because of the generosity of its shareholders who have always increased the capital of the bank.”
BADEA’s President referred to the successful launch of its first bond in the capital market, revealing that “the bank intends to be a regular issuer on the capital market to raise more resources for the African continent at very competitive pricing.”
Strengthened cooperation
For his part, the Founder and Executive Chairman of the Africa Prosperity Network (APN), Gabby Asare Otchere-Darko, said that BADEA was ushering in a stronger era of cooperation between the Arab world and Africa.
He emphasised the significance of this development, noting the challenges Africa had faced in financing its own development under favourable terms.
“Over the past decade or more, funding support had predominantly come from China, but this has also brought its own set of challenges and limitations. The emergence of an alternative through Arab-African cooperation presents a promising new avenue,” he stressed.
According to him, this strengthened relationship acknowledges the potential for mutual benefit between the Arab world and Africa.
He said in February, President Sidi launched the African Multilateral Financial Institutions, which include members such as the African Export–Import Bank (Afreximbank), Trade Development Bank, Africa Finance Corporation, Africa Reinsurance Corporation, among others.
Similarly, he mentioned, the Arab Coordination Group represents major multilateral financial institutions within the Arab world. He stressed that this initiative aims to unite these African and Arab financial institutions into a new consortium.
He further noted that the event would also prioritise Africa’s private sector to foster accelerated and deeper growth across the continent.
BADEA’s anniversary side event
Several heads of state and business leaders from the Arab world and Africa are scheduled to attend the 50th-anniversary celebration and the ceremony to launch AAFC, which is a side event of the AU’s 6th Mid-Year Coordination Meeting, both of which take place on Sunday.
In the Arab world, BADEA is a member of the Arab Coordination Group (ACG) – a consortium of 10 Arab Development Institutions that leverage their collective resources and expertise to maximize development impact across the world.
Most recently, in November 2023, the ACG pledged USD 50 billion in new investments towards Africa by 2030, demonstrating a strong commitment of the Arab partners towards the African region and its development priorities.
On the African continent, BADEA is also an observer member in the Alliance of African Multilateral Financial Institutions (AAMFI). AAMFI embodies Africa’s collective resolve to shape its financial future. BADEA, therefore, sits at a strategic intersection between the development interests of the two regions.
The Arab Bank for Economic Development in Africa (BADEA) was established under the resolution of the 6th Arab Summit Conference in Algiers (28 November 1973). The bank began operations in March 1975. BADEA is a financial institution owned by eighteen Arab countries, members of the League of Arab States (LAS), which signed its Establishing Agreement on 18 February 1974.
It is an independent international institution enjoying full international legal status and complete autonomy in administrative and financial matters. It is governed by the provisions of its Establishing Agreement and the principles of international law.