BADEA Unveils Ambitious Funding Agenda for Africa’s Development

The Arab Bank for Economic Development in Africa (BADEA), marking its golden jubilee anniversary this year, has outlined a new vision to bolster Africa’s development through enhanced funding efforts and collaboration with Arab financial institutions.

Dr. Sidi Ould Tah, President of BADEA, disclosed these plans at a press briefing on Thursday, July 18, emphasizing the launch of the Arab-Africa Financial Consortium (AAFC) in Accra on Sunday, July 21, 2024. This initiative is part of BADEA’s anniversary celebrations under the theme “BADEA Prosperity Partnership: 50 Years of Africa-Arab Cooperation.”

The AAFC aims to mobilize additional financial support from Arab financial institutions for African states and private sector entities. It is expected to be a crucial funding alternative, leveraging BADEA’s current capital base of US$20 billion.

“We believe the Arab-Africa Financial Consortium will be transformative, enhancing resource mobilization to support direct investments for Africa’s development,” Dr. Sidi Ould Tah stated.

BADEA’s commitment includes regularly issuing bonds in the capital market to raise competitive funding for African projects. This strategy reflects a proactive approach to effectively meeting the continent’s financing needs.

The launch event will coincide with the African Union Mid-Year Coordination Meeting in Accra, gathering heads of state, government officials, and business leaders from both regions. The celebration underscores BADEA’s pivotal role as a member of the Arab Coordination Group (ACG), which unites Arab development institutions to maximize developmental impact globally.

Recently, the ACG pledged USD 50 billion in new investments for Africa by 2030, demonstrating a robust commitment to Africa’s development priorities.

BADEA, established in 1975 under the League of Arab States, operates autonomously with a mandate to provide financial and technical assistance to promote socio-economic development across Africa. As an observer member of the Alliance of African Multilateral Financial Institutions (AAMFI), BADEA strategically aligns with Africa’s financial landscape to foster mutual development objectives.

The launch of AAFC signifies a significant step towards reinforcing Arab-African collaboration in advancing sustainable development across the continent.