BADEA unveils ambitious plan to mobilize $50 billion for Africa's development

The Arab Bank for Economic Development in Africa (BADEA) has announced a bold initiative to mobilize $50 billion in funding for Africa's development over the next six years.

This move is part of the bank's 50th-anniversary celebrations and its commitment to supporting the continent's economic growth.

Speaking at a press briefing, BADEA President Dr. Sidi Ould Tah revealed that the bank will launch the Arab-Africa Financial Consortium (AAFC) on July 21st July 2024 at the Kempinski Hotel in Accra, Ghana. The AAFC aims to pool resources from Arab financial institutions to support African development projects.

With its current capital base of $20 billion, BADEA plans to leverage its resources and mobilize additional funding from other Arab financial institutions. The bank has already made a successful debut on the capital market and intends to become a regular issuer to raise more resources for Africa.

“We do believe that this (the Arab-Africa Financial Consortium) will be a game-changer in terms of resource mobilization in the interest of the continent and also in developing and supporting direct investments to support the development of the continent.”

He added, “The bank has been funding projects since its inception from its resources, and that has been possible because of the generosity of its shareholders who have always increased the capital of the bank.

This initiative is part of the Arab Coordination Group's (ACG) commitment to invest $50 billion in Africa by 2030. BADEA's partnership with ACG and its membership in the Alliance of African Multilateral Financial Institutions (AAMFI) position it to play a vital role in channelling resources to Africa.

The launch of AAFC is expected to be a significant milestone in Africa's development journey, providing a boost to direct investments and development projects across the continent.

On his part Gabby Octhere-Darko the Executive Chairman and Founder of Africa Prosperity Network said the event is set to build upon the existing relationship between the two regions, fostering greater economic integration and development.

He highlighted Africa's aspirations, natural resources, and potential for prosperity, emphasizing the need for financial support and policy reforms to achieve the African Union's Agenda 2063 and the Sustainable Development Goals (SDGs).