Akufo-Addo commends BADEA’s role in Africa’s development

President Nana Addo Dankwa Akufo-Addo has praised the Arab Bank for Economic Development in Africa (BADEA) for its significant contributions to financing and supporting numerous projects across the African continent, spanning infrastructure development, healthcare, education, and agriculture.

Speaking at the launch of the Arab-Africa Financial Consortium (AAFC) and BADEA’s 50th anniversary at the Kempinski Hotel in Accra on Sunday, 21 July 2024, President Akufo-Addo stressed BADEA’s pivotal role in Africa’s development over the past five decades.

He expressed confidence that the establishment of the AAFC would usher in an even more exciting era for Arab-African relations.

He said, “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.”

He noted that BADEA has financed over 700 projects in more than 44 African countries, with a total value exceeding US$6 billion.

These projects, he said, have created jobs, improved living standards, and spurred economic growth across the continent.

“BADEA 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,” he added.

President Akufo-Addo emphasized BADEA’s adaptability and responsiveness to meet development challenges, including its role in the COVID-19 response and pledges within the Arab coordination group on food security, climate change, and resilient infrastructure.

He said, “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 organizations to join hands in this endeavour.”

He also outlined four key areas that the AAFC should focus on: investment in human capital, infrastructure development, trade and investment growth, and women and youth empowerment.

Dr. Fahad Aldossari, Chairman of the Board of Directors of the Arab Bank for Economic Development in Africa (BADEA), echoed these sentiments and assured African leaders, heads of financial institutions, and business leaders that the newly established AAFC will fully commit to promoting Africa’s rapid development over the next 50 years.

At a leader’s breakfast, Dr. Aldossari acknowledged the pivotal role played by President Akufo-Addo and the African Union’s Champion of Financial Institutions in the establishment of the AAFC.

He noted that BADEA would take immediate steps to institutionalize the AAFC by establishing a secretariat to 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.”

“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 realizing the vision of Arab–Africa financial institution collaboration and coordination for leveraging resources for the continent,” Dr. Fahad Aldossari said.

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, the exploitation of the continent’s rich green mineral resources; third, the mobilization of support for green infrastructure in Africa; fourth, food security; and lastly, ensuring that the new drive for the 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 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.

The Arab Bank for Economic Development in Africa (BADEA) was established under the resolution of the 6th Arab Summit Conference in Algiers on 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, the Kuwait Fund for Arab Economic Development, the OPEC Fund for International Development, the 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).

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