The chairman of the Board of Directors of the Arab Bank for Economic Development in Africa (BADEA), Dr Fahad Aldossari, has assured African leaders, heads of the continent’s financial institutions, and business leaders that the newly established Arab-Africa Financial Consortium (AAFC) will do everything within its mandate to ensure that it achieves its set objective of promoting Africa’s rapid development over the next 50 years.
Acknowledging the pivotal role played by the President of Ghana and African Union champion of financial institutions, President Akufo-Addo, in the establishment of the Arab-Africa Financial Consortium, in his address at a leader’s breakfast, which took place as part of the launch of the AAFC and the BADEA 50th anniversary, at the Kempinski hotel, in Accra on Sunday, 21 July 2024, Dr Fahad Aldossari pointed out that from now to 2074 (the next 50 years), BADEA will take immediate steps to institutionalise the AAFC by establishing a secretary to host and coordinate its activities.
“Today is also a special day as we feel honoured and grateful to his excellency, President of Ghana, the African Union Champion of financial institutions who not only welcomed BADEA’s anniversary and hosted [us] in the beautiful city of Accra but also elevated the partnership and coordination of financial institutions to support Africa,” Dr Fahad Aldossari said.
“With His Excellency’s call to establish the Arab – Africa financial consortium following the successful launch of the African financial institutions’ network last Friday, I can confirm that BADEA will spare no effort in ensuring this consortium succeeds in realising the vision of Arab – Africa financial institution collaboration and coordination for leveraging of resources for the continent,” the BADEA Board Chairman added.
Critical investments
President Akufo-Addo in his keynote address observed that BADEA has, in the last 50 years, played a key role in the development of the African continent and he is confident that with the establishment of the AAFC, the next fifty years will be even more exciting as far as the relationship between the Arab world and the African continent is concerned.
Investment in human capital, infrastructure development, trade and investment growth, and women and youth empowerment, according to President Akufo-Addo, are four key areas that he believes the Arab-Africa Financial Consortium (AAFC) ought to pay attention to and drive.
“Over the past five decades, BADEA has been a beacon of hope, a catalyst for development, and a symbol of the enduring bond between our two regions. Since its inception in 1974, BADEA has been instrumental in fostering economic development and cooperation between African and Arab countries.
“It has played a pivotal role in financing and supporting numerous projects across the African continent from infrastructure development to healthcare, education, and agriculture. These projects have not only contributed to the socio-economic development of our nations and continent but have also strengthened the partnership between Africa and the Arab world,” President Akufo-Addo said.
BADEA’s commitment to Africa according to President Akufo-Addo, “is evident in its track record”. He said that “over the past 50 years, BADEA has financed over 700 projects in more than 44 African countries with a total value exceeding US$6 billion”. These projects, Akufo-Addo said “have created jobs, improved living standards, and spared economic growth across the continent.”
“BADEA has not only evolved to meet the expectations of the continent and shareholders but also to demonstrate agility and responsiveness to meet development challenges from the COVID-19 response to becoming pledges in the Arab coordination group on food security, climate change, and resilient infrastructure. As we celebrate fifty years of Arab-Africa cooperation through BADEA, let us reaffirm our commitment to this vital partnership.
“Let us build on the successes of the past and work together to address the challenges of the future. Let us strive to create a more prosperous, inclusive, and sustainable future for all our peoples. I call on all stakeholders, governments, the private sector, civil society, and international organisations to join hands in this endeavour,” President Akufo-Addo said.
Five pivotal areas
Dr Adesina Akiwumi, President of the African Development Bank Group on his part indicated that there are five issues that the reinvigorated Arab-Africa partnership should focus on. At the top of the list, he said is energy development, second, is the exploitation of the continent’s rich green mineral resources, third, mobilisation of support for green infrastructure in Africa, fourth, food security and lastly, ensuring that the new drive for Arab-Africa partnership revolves around the Africa Investment Forum initiative.
“In the last five years, because of our collective work together, we have been able to attract over 180 billion dollars in investment interest into Africa. So, I am fully confident that as we structure the Arab and African financial institutions’ partnership, around this (Africa Investment Forum) effort, we can deliver even more results” Dr Adesina Akiwumi said.
BADEA
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 member countries 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.
Several other key Arab institutions will also play an instrumental role in leveraging the partnership between the Arab and African countries through the establishment of the AAFC. Among them are, the Abu Dhabi Investment Authority, SaudiExim Bank, UNIDO ITPO office Bahrain, AIM Global Foundation, and the Arab Authority for Agricultural Investment and Development (AAAID).
The rest are the Public Investment Fund PIF, Halal Products Development Company, the Emirates Investment Authority, the Kuwait Investment Authority (KIA), the Investment Corporation of Dubai, the Qatar Investment Authority, the Oman Investment Authority, the Islamic Trade Finance Corporation (ITFC), and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
