The Arab Bank for Economic Development in Africa (BADEA), which celebrates its golden jubilee anniversary this year, will over the next 50 years focus on enhancing its own efforts and mobilising additional funding support from other financial institutions in the Arab region for the development of Africa.
This was disclosed by Dr. Sidi Ould Tah, President of BADEA at a press briefing Thursday, 18 July. BADEA will officially outdoor this new vision when it launches the Arab-Africa Financial Consortium (AAFC), in Accra on Sunday, 21 July 2024, as part of its 50th-anniversary celebrations under the theme: “BADEA Prosperity Partnership: 50 Years of Africa-Arab Cooperation.”
The Arab-Africa Financial Consortium, which will be launched at a “Leaders’ Breakfast” attended by African heads of state and government participating in the African Union Mid-Year Coordination Meeting in Accra on Sunday, as well as heads and representatives of multilateral financial institutions from both Africa and the Arab region, is expected to serve as a significant alternative pool of funding for African states and private sector entities.
Addressing members of media on Thursday (18 July) at the Kempinski Hotel, Dr. Sidi Ould Tah, said that BADEA stands ready with its current capital base of US$20 billion to support projects and a special session with private sector operators has been organised at Kempinski Sunday on how these funds can be accessed.
“We do believe that this (the Arab-Africa Financial Consortium) will be a game-changer in terms of resource mobilisation 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 own resources, and that has been possible because of the generosity of its shareholders who have always increased the capital of the bank.”
BADEA’s President referred to the successful launch of its first bond in the capital market, adding, “the bank intends to be a regular issuer on the capital market to be able to raise more resources for the African continent at very competitive pricing.”
Several heads of state and business leaders from the Arab world and the African continent are billed to attend the 50th anniversary celebration and the ceremony to launch AAFC, which is a side event of the AU’s 6th Mid-Year Coordination Meeting, both of which take place Sunday, 21 July 2024.
In the Arab world, BADEA is a member of the Arab Coordination Group (ACG) – a consortium of 10 Arab Development Institutions that leverage their collective resources and expertise to maximise development impact across the world.
Most recently, in November 2023, the ACG pledged USD 50Bn in new investments towards Africa by 2030, demonstrating a strong commitment of the Arab partners towards the African region and its development priorities.
On the African continent, BADEA is also an observer member in the Alliance of African Multilateral Financial Institutions (AAMFI). AAMFI embodies Africa’s collective resolve to shape its financial future. BADEA, therefore, sits at a strategic intersection between the development interests of the 2 regions.
The Arab Bank for Economic Development in Africa (BADEA) was established under the resolution of the 6th Arab Summit Conference at Algiers (28 November 1973). The bank began operations in March 1975. BADEA is a financial institution owned by eighteen Arab countries members of the League of Arab States (LAS), which signed its Establishing Agreement on 18 February 1974.
The bank is an independent international institution enjoying full international legal status and complete autonomy in administrative and financial matters. It is governed by the provisions of its Establishing Agreement and the principles of international law.
The Arab Coordination Group (ACG), an alliance of Arab development institutions established to promote and coordinate financial and technical assistance to developing countries, primarily in the Arab world and Africa, is partnering with BADEA to launch the Arab – Africa Financial Consortium (AAFC).
The ACG comprises several key institutions including; the Abu Dhabi Fund for Development, the Arab Bank for Economic Development in Africa, the Arab Fund for Economic and Social Development, the Arab Gulf Programme for Development, the Arab Monetary Fund, the Islamic Development Bank, Kuwait Fund for Arab Economic Development, OPEC Fund for International Development, Qatar Development Fund, and the Saudi Fund for Development.
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