Bawumia supports AfDB aggressive resource mobilisation drive

Vice President, Dr Mahamudu Bawumia, has advised the African Development Bank (AfDB) to explore the issuance of security indexed investment bonds to raise funds to combat increasing insecurity on the continent.

He also urged the bank to pursue the strategic decision of the European Union on Special Drawing Rights to drive Africa's recovery and transformation effort while enhancing the capacity of countries to protect investments and livelihoods.

He said the plan of the EU to make the AfDB the delivery vehicle for SDR on the continent was laudable as the bank could leverage these resources to raise funds.

“The success of these endeavours will be crucial in sustaining the commendable efforts of the bank to improve Africa's preparedness and resilience for possible future global supply chain disruptions and health emergencies,” he said.

He made the remarks at the closing ceremony of the AfDB Group Annual General Meeting (AGM) which was held on the theme: “Achieving climate resilience and a Just Energy Transition for Africa”.

Dr Bawumia noted that increased access to funding impacted how countries optimise the fourth industrial revolution to create a resilient knowledge and database as well as the capacity to upgrade health systems and fight pandemics.

He, therefore, commended the Board of Governors of the bank for the foresight in endorsing the broad framework for the bank strategic outlook from 2023 to 2032.

“It would be critical that through this strategic plan, the AfDB will work closely with the EU Commission and other sub regional institutions to urgently operationalise and grow the African Financial Stability Mechanism. This will enhance protection for our economies from future shocks and enable us to join the list of regions with such economic buffer arrangements," he said.

“It is my view that a successful implementation of this strategic plan will draw the continent closer to achieving the goals of agenda 2063 and build the Africa we want amongst others,” he said.

The Immediate past Chairperson of the Boards of Governors, Mr Ken Ofori-Atta said the exigencies of rising food and fuel prices amid limited financing tools caused by elevated debt levels demanded a holistic approach to help the 1.3 billion African population.

“I am particularly proud that we laid down our self-interest and focused our discussions on collectively breaking the injustices and inequities of the global financial architecture,” he said.

Dr Akinwumi Adesina, the president of the AfDB Group, said the bank had decided to allow the African Development Fund (ADF), which marked its 50th anniversary, to tap the international markets using its accumulated equity of $25 billion to raise $35 billion.

“ADF going into the market is good for Africa. is good for the development is good for the donors because it leverages donor’s taxpayers. Money to deliver greater value and it is good for debt sustainability,” he said.