Latest news with #AfricanDevelopmentFund
Business Insider
2 days ago
- Business
- Business Insider
5 African countries make historic $16 million pledge to African Development Fund
Five African nations - The Gambia, Ghana, Liberia, Sierra Leone, and Sudan - have made a historic collective contribution of $16 million to the African Development Fund (ADF), marking a significant milestone in the continent's journey toward financial autonomy and shared prosperity, and demonstrating African solidarity and self-reliance. Five African nations contributed $16 million to the African Development Fund, tripling their previous pledge. This marks the first-time contributions from all countries in a single constituency during an ADF replenishment cycle. The contributions increased the number of African ADF donor countries from eight to thirteen. The $16 million pledge was made during a high-level meeting on the sidelines of the 2025 African Development Bank (AfDB) Annual Meetings in Abidjan, Côte d'Ivoire, signaling a strategic and symbolic shift for the African economic alliance. This move, which more than triples their previous pledge of $5 million, marks a breakthrough in the continent's development financing approach. Notably, for the first time in ADF history, all five countries from a single constituency have committed to the Fund's replenishment cycle. Rufus Darkortey, the outgoing Executive Director, welcomed the development with great enthusiasm. He said: " This is a powerful message that Africa is not just a recipient but a partner in shaping its own future." Pledges by Country: Ghana: $5 million Sudan: $3 million Liberia: 3 million Sierra Leone: $3 million The Gambia: $2 million The bold pledges have significantly increased the number of African donor countries to the ADF from 8 to 13, representing a 62.5% rise in intra-African financial support, signaling growing confidence in homegrown financing solutions The meeting also marked a significant leadership transition, honoring Sheku Bangura, Sierra Leone's Finance Minister and Chair of the Governors, and Executive Director Rufus Darkortey for their transformative leadership over the past three years. At the event, which included a tribute to the outgoing leadership, Bangura reflected: " Three years ago, the road looked steep, but together, we turned challenges into stepping stones, building resilience, amplifying our voice, and unlocking greater financing flows for our countries." The new leaders, Dr. Cassiel Ato Forson, Ghana's Finance Minister, and Augustine Kpehe Ngafuan, Liberia's Finance and Development Planning Minister, were welcomed amid high expectations for continuity and innovation. The constituency reaffirmed its commitment to domestic resource mobilization (DRM) and and private sector-led growth, recognizing it as essential for sustainable development: The Gambia doubled its tax-to-GDP ratio in just two years through fiscal reforms. Ghana strengthened compliance and expanded fiscal space via digital revenue systems. Liberia was selected as the pilot for the Youth Entrepreneurship Investment Bank and secured $40 million for the Ghana SME Growth Opportunity Fund. AfDB eyes future growth The Bank's ongoing efforts also include targeted macroeconomic support for Ghana and plans to establish an office in The Gambia. Additionally, Sudan is benefiting from crisis response and food security initiatives. In anticipation of the leadership transition, Bangura articulated a strategic vision, he emphasized: " The message from the Bank and development partners is clear: future resources will hinge on performance, selectivity, and a reduced grant component in financing," " This is our moment to position our countries not as passive recipients but as agile reformers and credible investment destinations." He added. The overarching message from both outgoing and incoming leaders is clear: Africa must own its development agenda.
Arabian Post
5 days ago
- Business
- Arabian Post
Adesina Urges Successor to Champion Africa's Financial Autonomy
Dr Akinwumi Adesina, nearing the conclusion of his decade-long presidency at the African Development Bank , has called upon his successor to prioritise Africa's financial sovereignty and ensure the continent's interests are robustly defended on the global stage. This appeal comes as the AfDB prepares to elect a new leader during its annual meeting in Abidjan, Côte d'Ivoire, on 29 May. The incoming president will assume office amid significant challenges, notably the proposed $555 million reduction in funding from the United States to the AfDB and its concessional arm, the African Development Fund . This funding shortfall presents a critical test for the new leader, who must navigate the financial gap by potentially persuading the U.S. to restore its support, soliciting contributions from other nations such as China, Saudi Arabia, or the UAE, or increasing funding from African member states. Five candidates are vying for the presidency: Swazi Tshabalala of South Africa, Amadou Hott of Senegal, Samuel Munzele Maimbo of Zambia, Sidi Ould Tah of Mauritania, and Abbas Mahamat Tolli of Chad. Each brings a distinct vision for the bank's future. Tshabalala emphasises internal restructuring to enhance focus on infrastructure and innovation in financial instruments. Hott advocates for African financial self-reliance by improving revenue mobilisation and facilitating private-sector investments. Maimbo focuses on intra-African trade, regulatory streamlining, and a unified development approach across the continent. Ould Tah prioritises economic sovereignty, capital mobilisation, formalising Africa's informal sector, and building climate-resilient infrastructure. Tolli proposes enhanced governance, risk pooling, and digital finance mechanisms to curb resource mismanagement and promote self-sufficiency. ADVERTISEMENT Adesina's tenure has been marked by significant achievements, including increasing the bank's capital base from $93 billion to $318 billion and implementing initiatives that have impacted over 515 million lives across Africa. Under his leadership, the AfDB has invested over $55 billion in infrastructure, making it the largest multilateral financier of African infrastructure. The bank has also prioritised healthcare, committing $3 billion in quality healthcare infrastructure and another $3 billion for pharmaceutical development, including establishing the Africa Pharmaceutical Technology Foundation. As he prepares to step down, Adesina has urged his successor to continue advocating for Africa's interests, particularly in the face of global financial shifts and challenges. He emphasised the importance of including Africa's natural capital—oil, gas, minerals, biodiversity, carbon—into GDP calculations to enhance borrowing power and stressed the need for financial independence amid reduced Western aid. Adesina also highlighted the exploitation of African forests for cheap carbon credits, advocating for fair valuation of Africa's carbon sequestration resources.
Arabian Post
6 days ago
- Business
- Arabian Post
Leadership Transition at AfDB Amidst Funding Challenges
The African Development Bank is convening in Abidjan, Côte d'Ivoire, this week to elect a new president, as the institution confronts significant financial pressures following proposed reductions in U.S. contributions. The U.S. government's plan to decrease its support to the AfDB and its African Development Fund by $555 million presents a substantial challenge for the incoming president. The successor to President Akinwumi Adesina, who concludes his tenure in September after serving two terms, will need to navigate this financial shortfall. Options include engaging with the U.S. to reconsider its funding decisions, seeking increased contributions from other nations such as China, Saudi Arabia, or the United Arab Emirates, or bolstering financial support from African member states. Five candidates are vying for the presidency: Swazi Tshabalala from South Africa, Amadou Hott from Senegal, Samuel Munzele Maimbo from Zambia, Sidi Ould Tah from Mauritania, and Abbas Mahamat Tolli from Chad. Each brings distinct perspectives and strategies to address the bank's current challenges. ADVERTISEMENT Swazi Tshabalala, the only female candidate and former senior vice president of the AfDB, emphasizes internal restructuring to enhance the bank's focus on infrastructure and innovative financial instruments. Amadou Hott, Senegal's former economy minister, advocates for African financial self-reliance by improving revenue mobilization and facilitating private-sector investments. Samuel Munzele Maimbo, a World Bank vice president from Zambia, supports intra-African trade, regulatory streamlining, and a unified development approach across the continent. Sidi Ould Tah of Mauritania, with extensive experience in development banking, focuses on economic sovereignty, capital mobilization, formalizing Africa's informal sector, and building climate-resilient infrastructure. Abbas Mahamat Tolli, with a rich financial background across Central Africa, proposes enhanced governance, risk pooling, and digital finance mechanisms to curb resource mismanagement and promote self-sufficiency. The election process involves votes from the AfDB's 54 African member states and its broader 81-member group, which includes non-African stakeholders. The outcome will significantly influence the bank's direction amid shifting global economic dynamics. The proposed U.S. funding cuts are part of a broader reevaluation of foreign aid under the current administration. Executive Order 14169, signed on January 20, 2025, initiated a 90-day pause on all U.S. foreign development assistance programs to conduct a comprehensive review. While some humanitarian programs have been exempted, the overall reduction in aid has raised concerns about the impact on development initiatives across Africa. In response to these challenges, African leaders and institutions are emphasizing the need for increased self-reliance and investment in regional development mechanisms. The African Trade Insurance Agency has called for greater investment in African development institutions to reduce dependence on unpredictable donor funding. Similarly, the Africa Centres for Disease Control and Prevention has launched the African Epidemic Fund to provide flexible funding for disease outbreak responses, highlighting a shift towards internally driven solutions.
Business Recorder
7 days ago
- Business
- Business Recorder
African Development Bank to pick new head to confront US funding cuts
NAIROBI/ABIDJAN: The African Development Bank is meeting in Ivory Coast this week to pick a new president at a time when the continent's biggest multilateral lender faces unprecedented challenges from funding cuts by the U.S. government. Washington wants to cut $555 million in funding to the AfDB and its African Development Fund, which offers low-priced financing to the continent's poor nations. 'This is going to be a major task and it is effectively the new president's first test,' said Hannah Ryder, founder of Development Reimagined, an Africa-focused consultancy. The annual gathering of heads of state and finance officials, taking place this year in Abidjan, is one of the biggest finance meetings on the continent. It comes as heavily indebted governments in the region are searching for new sources of financing to bankroll their development projects. AfDB, which is Africa's largest development finance institution with $318 billion capital, is owned by 54 African states and G7 nations such as the U.S. and Japan. Its biggest shareholder is Nigeria. The next round of replenishment for the ADF, which is held on a three-year cycle, is scheduled to take place in November. It is targeting to raise $25 billion, up from $8.9 billion in the last round. The new president will have to try to persuade the U.S. to reinstate the funding, seek additional funds from non-regional members of the bank like China, or Gulf countries like Saudi Arabia and the United Arab Emirates, in return for more say, or ask African states to contribute more, Ryder said. Five candidates - from South Africa, Senegal, Zambia, Chad and Mauritania - are vying to replace outgoing President Akinwumi Adesina, who will step down in September after serving the maximum two five-year terms. AfDB will focus on boosting electricity connections, increasing food production, fostering industries, integrating economies on the continent and lifting people's living standards over the next decade, Adesina told a media reception at the meeting on Monday. The winner, who must secure at least 50.01% of the votes from the 54 African member states of the bank, and in a second vote from all 81 members, including non-African ones, will be announced on Thursday. The bank is grappling with the challenges of a changing global economy after U.S. President Donald Trump returned to the White House, including higher U.S. import tariffs. 'We expect the meeting to discuss implications of current global events arising from the Trump administration,' said Fred Muhumuza, a lecturer at Makerere University's business school in Kampala. 'Many of the key contributors have been cutting bilateral support to African countries.'
Jordan Times
06-05-2025
- Politics
- Jordan Times
Dialogue forum highlights women's role in shaping Jordan's political future
The Solidarity is Global Institute holds a dialogue forum titled "Women's Participation in Political Life" as part of its 'Safe Pathways' initiative, supported by the African Development Fund (Petra photo) AMMAN — The Solidarity is Global Institute (SIGI) held a dialogue forum titled "Women's Participation in Political Life" as part of its 'Safe Pathways' initiative, supported by the African Development Fund. The institute stressed that Jordan's ongoing political reforms present a 'real' chance to elevate women's roles in public life, especially in leadership and decision-making positions, the Jordan News Agency, Petra, reported. It pointed to the results of the 20th Parliamentary elections, which saw 27 women elected, 18 through the quota and 9 through the general list, as a 'notable' milestone. The event gathered current and former female MPs, civil society representatives, youth leaders, and local community figures, where participants underscored that women's presence in the Parliament is not only symbolic but essential to 'meaningful' engagement in drafting legislation, particularly on matters impacting women and families. Speakers stressed that women's political participation must be seen as a 'national obligation' rather than a symbolic achievement, calling for a stronger commitment by female lawmakers to legislative efforts that promote justice, fairness, and leadership rooted in equality. Challenges facing women in political office were also discussed. Former MP Amal Rufou of the 16th Parliament pointed to prevailing social norms as a major obstacle, noting that although the current legal framework offers broader chances for women to run for office, cultural barriers still hinder full participation. Rufou stressed that promoting awareness of democratic rights is vital to increasing the number of women engaging in political life, which would ultimately lead to more balanced and inclusive representation. Former MPs Najah Azza and Asma Rawahneh reflected on their parliamentary experience, highlighting how legislative proposals related to women's rights often encounter political resistance. Participants called on civil society organisations to involve men more actively in advocacy work, stressing that women's issues are national concerns that impact all segments of society. The forum concluded with several recommendations, including integrating male and female leaders into specialised training on legislation and parliamentary oversight, and enhancing women's representation in parliamentary committees, mainly the Legal Committee. SIGI has previously held similar dialogue sessions in Irbid, Amman and Zarqa, in collaboration with stakeholders from various sectors. These meetings have reached women working in agriculture, education, health, industry, local governance, and women with disabilities and those undergoing cancer treatment.
