Vice President Dr. Mahamudu Bawumia advised the African Development Bank (AfDB) to explore the issuance of security-indexed investment bonds to raise funds to tackle growing insecurity on the continent.
He also urged the bank to pursue the European Union’s strategic decision on special drawing rights to boost Africa’s recovery and transformation effort while strengthening countries’ capacity to protect investments and resources. of subsistence.
He said the EU’s plan to make the AfDB the delivery vehicle for SDRs on the continent was commendable as the bank could leverage these resources to raise funds.
“The success of these efforts will be crucial in supporting the bank’s laudable efforts to improve Africa’s preparedness and resilience to potential future global supply chain disruptions and health emergencies,” he said. -he declares.
He made the remarks during the closing ceremony of the AfDB Group’s Annual General Meeting (AGM) held under the theme: “Achieving Climate Resilience and a Just Energy Transition for Africa”.
Dr. Bawumia noted that increased access to finance has impacted how countries leverage the fourth industrial revolution to build a resilient knowledge and data base as well as the capacity to upgrade health systems and to fight pandemics.
He therefore commended the bank’s Board of Governors for the foresight in approving the bank’s overall strategic outlook framework for 2023-2032.
“It would be essential that through this strategic plan, the AfDB works closely with the European Commission and other sub-regional institutions to urgently operationalize and develop the African Financial Stability Mechanism. This will strengthen the protection of our economies against future shocks and allow us to join the list of regions benefiting from such economic buffer arrangements,” he said.
“I am of the view that a successful implementation of this strategic plan will bring the continent closer to achieving the goals of Agenda 2063 and build the Africa we want, among others,” he said.
The outgoing Chairman of the Boards of Governors, Mr. Ken Ofori-Atta, said the demands of rising food and fuel prices in a context of limited financing tools caused by high levels of debt required a holistic approach to help the 1.3 billion Africans.
“I am particularly proud that we have defined our self-interest and focused our discussions on the collective removal of injustices and inequalities from the global financial architecture,” he said.
AfDB Group President Dr. Akinwumi Adesina said the bank has decided to allow the African Development Fund (ADF), which celebrated its 50th anniversary, to tap international markets using its accumulated equity from $25 billion to raise $35 billion.
“ADF’s entry into the market is good for Africa. it’s good for development it’s good for donors because it increases donors’ leverage on taxpayers. Money to deliver greater value and that’s good for debt sustainability,” he said.