The African Development Bank says Africa has shown resilience with the bank projecting the continent's real GDP to grow 3,7% this year and 4,3% in 2025.
Last year, growth was 3,1%.
Despite these headwinds, AfDB president ,Akinwumi Adesina said more than half, about 31 countries, achieved higher real GDP growth rates in 2023 than in 2022.
Officially opening the AfDB 2024 annual meetings in Nairobi Kenya, Adesina said 10 African countries were among the 20 fastest growing economies in the world.
“I think we've done well against the headwinds. I think we deserve a clap for Africa. The African Development Bank Group strongly supports African economies,” Adesina said.
“Your Excellencies, African economies are showing great resilience despite the challenges posed by climate change, geopolitical tensions, global inflation and rising debt, among others. As we gather today, we do so against the background of major global challenges, including heightened geopolitical tensions, the destruction of global value chains, rising food and energy prices, increasing death payments, and of course climate change. The devastating effects of climate change are everywhere from droughts to floods, from cyclones to unpredictable weather patterns, the loss of lives and property, and enormous fiscal costs to countries.’
Adesina said he had faith the continent will keep soaring with the right financial architecture that leverages internal resources.
This is coming at a time, the AfDB chief said the bank is targeting to deliver at least US$80 billion from the US$20 billion special drawing rights windfall from the International Monetary Fund.
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“The executive board of the International Monetary Fund approved the use of the special drawing rights as hybrid capital, which is based on the proposal developed by the African Development Bank and the Inter-American Development Bank. If the approved limit of U$20 billion of the SDRs is channeled to multilateral development banks like us, we can leverage these to deliver at least U$80 billion of new financial support.,” he said
He said AfDB was on course to reaching our goal of mobilizing U$25 billion in climate finance with the institution having devoted 45% of its total lending to climate finance.
He said the banks’ climate action window on the 16th replenishment of the African Development Fund, with support from the governments of the United Kingdom, Netherlands, Germany, and Switzerland, opened its first call for proposals.
“The response was amazing. It received over 2,000 proposals, and the 359 shortlisted application requests were close to US$4 billion.The bank is building strong and effective global partnerships to deliver more for Africa. Through the support of the G7, we are accelerating women's access to finance through what we call the Affirmative Finance Action for Women in Africa, or AFAWA, in partnership with the Africa Guarantee Fund, which is now working with 169 financial institutions in 43 countries. And I like to say that Africa will go faster when we make sure that it flies with two wings, no bird flies with one wing.,” he added
The annual meetings are running under the theme: Africa's Transformation,the African African Development Group and the Reform of the Global Financial Architecture.
