East African Gazette
African
The African Development Bank Group (ADB) president Akinwumi Adesina together with the CEO of Saudi Exim Bank Saad Al-Khalb have signed a $4 Trillion memorandum of understanding to strengthen bilateral trade and cooperation and the Kingdom African continent.
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The (ADB) President Adesina said Africa needs significantly increased financing to meet the Sustainable Development Goals (SDGs).
Adesina speaking at the Islamic Development Bank’s 50th anniversary celebrations in Riyadh, he highlighted a growing annual financial shortfall of $4 trillion, a gap that threatens to derail efforts to achieve the SDGs by 2030.
The Saudi Fund for Development and the ADB Group also signed a memorandum of understanding to promote sustainable international
development by financing projects and programs in beneficiary countries in Africa.
The agreement was signed at the Fund’s headquarters by the CEO of the Saudi Fund for Development, Sultan bin Abdulrahman Al-Marshad and
Adesina April 29.
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The ceremony was attended by the Governor of the Kingdom of Saudi Arabia to the African Development Bank Group, Dr. Ryadh bin Mohammed
Alkhareif, and Executive Vice President Faisal bin Mohammad Al-Qahtani
Adesina said the current annual gap of $4 trillion from $2.5 trillion in 2015, has been propelled by recent global economic pressures and
effects of the Covid-19 pandemic.
Adesina highlighted the ADB’s strategic programs of Light up and power Africa; Feed Africa, Industrialize Africa, Integrate Africa, and Improve the Quality of Life for the People of Africa, a strategic blueprint for the continent.
He said if this is achieved it will mean accomplishing nearly 90% of the SDGs. He added that it is crucial to look out for climate change, food security, energy access, health security, and mobilizing more resources for SDGs.
“Africa will need $277 billion per year to address climate change, yet it receives only $30 billion annually and needs to set a target to raise $25 billion for climate adaptation by 2025.”
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Food Security
Adesina reiterated the African Development Bank’s commitment of $25 billion to support Africa to become self-sufficient in food by 2030.
He shared with the audience key successes in transforming agricultural productivity and food security across Africa.
Ethiopia, through the introduction of heat-tolerant wheat varieties has achieved self-sufficiency in wheat production within four years and has become a net exporter of wheat.
He thanked the Islamic Development Bank for committing $7 billion during the Feed Africa summit held early last year by the ADB, African
Union and the government of Senegal.The summit brought together 34 heads of state and government who developed country-led food and
agricultural delivery compacts to achieve food security by 2030.
Over 675 million people worldwide lack electricity with 80% in sub-Saharan Africa, he underscored the Bank’s efforts through the Desert-to-Power initiative. This project is developing 10,000 megawatts of solar power across the Sahel and will provide electricity access for 250 million people.
He emphasized the need for self-reliance in healthcare, particularly in preparation for future pandemics, citing the hard lessons that Africa learned from the Covid-19 pandemic. The ADB Group has committed $3 billion towards quality health infrastructure and a further $3 billion for developing the pharmaceutical industry in Africa.
He also said that, in a joint initiative with the Inter-American Development Bank, ADB is pioneering the use of Special Drawing Rights (SDRs) as hybrid capital, subject to approval by the IMF’s board.
He said they have advocated for harnessing the power of the $128 trillion in global institutional investor assets through more extensive use of guarantees, development of investable projects, and addressing foreign exchange and currency risks.
President of the Islamic Development Bank, Dr Mohammed Al Jasser said issues like climate change, the pandemic, and ongoing conflicts
continue to threaten the hard-won gains achieved over decades.
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“The stark reality we face is that the global financial system has not kept pace with the urgency required to realize the SDGs. We must
collectively work towards a global financial system to foster a more inclusive, equitable, and sustainable future.” Al Jasser said.
He added that “It is within this context that Islamic finance adds value in prioritizing not just financial returns, but the holistic well-being of individuals. Its principles of shared prosperity, risk-sharing, and ethical investment lead to a clear path toward bridging the SDGs financing gap,” he said