NAIROBI, Kenya – On Friday, May 31, curtains came down on the African Development Bank Group’s 59th annual general meeting in Nairobi.
At the close of the five-day event, the bank unveiled its new 10-Year Strategy 2024–2033.
Y News has established that the blueprint aims to confront Africa’s pressing challenges and help put the continent back on track towards sustained economic growth and prosperity.
Africa’s leading development financing organisation is the African Development Bank Group. The Nigeria Trust Fund (NTF), the African Development Fund (ADF), and the African Development Bank (AfDB) are its three separate constituent institutions.
With an overseas office in Japan and operations in 41 African nations, the Bank supports the social and economic advancement of its 54 member governments in the region.
African Development Bank Group President Akinwumi Adesina said that as Africa’s premier development finance institution and solutions bank, the group is acutely aware that the next decade will transform the continent.
“Therefore, as we celebrate 60 years of making a difference in the countries and lives of the people of Africa, we remain resolute in our determination to accelerate the support we provide to African countries,” said Adesina.
Africa is facing a growing debt problem and increased food shortages due to the COVID-19 pandemic.
A rise in political unrest and violence coincides with the acceleration and intensification of climate change’s effects.
Also, a large portion of Africa’s future workforce is leaving the continent searching for opportunities outside, a phenomenon made worse by a young population with lagging job growth.
Against this backdrop, the Bank’s strategy, approved by the Board earlier this year, sets out decisive and urgent actions the financial institution will take to help African countries navigate the unprecedented global and regional challenges.
These actions will build on Africa’s multiple unique assets and reignite momentum towards achieving the African Union’s Agenda 2063 and the United Nation’s Sustainable Development Goals, ultimately fostering lasting growth.
The conviction that Africa has enormous potential for social and economic change is at the heart of the 2024–2033 strategic vision.
The Bank argues that Africa can drive sustainable growth and significantly contribute to global solutions over the next ten years by using its rich natural resources, quickly expanding urban markets, the world’s youngest and fastest-growing labour force, and abundant potential for clean energy.
“The Ten-Year Strategy outlines how the Bank will invest in Africa’s best asset: its vibrant young men and women. Africa’s population, which is the fastest growing in the world, presents the continent with an unparalleled demographic window of opportunity,” Adesina said.
Accelerating inclusive green growth and promoting affluent and resilient economies are the two main goals of the new strategy, which outlines a vision of an integrated, prosperous, and resilient Africa for the next ten years.
The Bank will endeavour to strike a balance between equity, economic progress, and environmental concerns, with a focus on sustainability.
The Bank intends to accelerate and scale up its activities, concentrating on transformative projects with broad effects, building on the previous ten years of successful High 5 execution.
The institution will streamline its operational model for more agility and effectiveness to maximise performance while controlling risks. To accomplish these goals, the Bank’s High 5 operating priorities, which are outlined below, are essential:
Light up and power Africa: Promote universal access to modern and affordable energy.
Feed Africa: Ensure food security through agricultural transformation.
Industrialise Africa: Catalyse manufacturing as a critical driver of job creation.
Integrate Africa: Foster regional integration and value chains for a more cohesive economy.
Improve the quality of life: Enhance living standards, particularly for women and youth.
Key cross-cutting priorities include:
- Promoting gender equality.
- Investing in young people.
- Responding to climate change.
- Investing in climate action.
- Supporting fragile states.
- Promoting good governance and economic stability.
The Bank sees the private sector’s pivotal role in transforming Africa. Over the next decade, it will strengthen collaboration with the private sector, prioritising investments in firms, and value chains, and micro, small, and medium-sized enterprises, especially those led by women and youth.
The challenge’s size and urgency will demand more resources than in the past. The Bank promises to mobilise funds from various sources, such as private investment and domestic income.
By 2033, it hopes to have tripled the amount of finance provided by the private sector while increasing its ability to do so through creative means.
Throughout the Ten-Year Strategy, the Bank will investigate several possibilities to expand its financing capacity in response to requests for Multilateral Development Banks (MDBs) to maximise the prospective of their balance sheets.
Some measures are Sustainable Hybrid Capital, Risk Transfers, and rerouting a sizable amount of the International Monetary Fund’s special drawing rights through Multilateral Development Banks.
The strategy outlines how the Bank will answer the call for MDBs to scale up their efforts urgently to respond to the priorities and significant ambitions of African countries and tackle global and regional challenges affecting the people of Africa.
MDBs are essential to addressing the world’s immense global and regional challenges. They provide low-cost finance, technical knowledge, and policy advice for emerging and developing countries.
Highlights of the Strategy:
Investing in women and young people: The strategy outlines how the Bank will invest in Africa’s best asset: its vibrant young men and women. Africa’s population, the youngest and fastest growing in the world, presents the continent with an unparalleled demographic window of opportunity.
The Bank will address disparities and promote inclusivity by empowering women and youth to contribute meaningfully to sustainable economic growth and prosperous societies.
Climate change adaptation: Recognising Africa’s vulnerability to climate change, the Bank will promote low-carbon development pathways aligned with the Paris Agreement while safeguarding biodiversity and nature.
Supporting fragile states and building resilience: Amid rising conflicts, fragility, and political instability in Africa, the Bank will intensify efforts to assist fragile countries. Special attention will be given to tackling cross-border challenges and reducing the isolation of landlocked and remote areas.
Promoting good governance: The Bank emphasises the importance of economic governance, including domestic resource mobilisation, transparent financial management, and anti-corruption measures. Sustainable debt management practices will also be prioritised to ensure long-term economic stability.
