By Lucy Ogalue
Nairobi, June 1, 2024
The African Development Bank (AfDB), has urged its shareholders to ensure implementation of the recently increased Special Drawing Rights (SDRs) by the International Monetary Fund (IMF).
The AfDB President, Akinwumi Adesina, said this at the closing of the bank’s 2024 Annual Meetings in Nairobi.
The News Agency of Nigeria (NAN) reports that the AfDB’s meeting, which started on May 27, ended on Friday.
The IMF board approved using SDRs for hybrid capital instruments, allowing countries to channel SDRs through Multilateral Development Banks (MDBs).
This innovative SDR-based hybrid capital channelling solution will help unlock new lending by MDBs to address rising global challenges, including climate and food security.
The new instrument offers the opportunity to lend at least four dollars for every one-dollar equivalent of SDRs through the AfDB, the Inter-American Development Bank, and other MDBs to finance development projects.
“We look to you, our shareholders to help make the rechanneling of the SDRs now a reality for Africans.
“A reality that will help to transform the lives and livelihood of our people and support us in our quest to create hope for our youth.
“A reality that will turn them into the biggest economic dividends of our continent.
“We had from you, our governors, very strong support and endorsement of our drive to mobilise private sector financing for Africa
“You have our word, and you have our commitment. We will,’’ Adesina said.
According to Adesina, the SDR will deliver greater financing through rechanneling by the SDR-rich countries to the AfDB, Inter-American Development Bank, the World Development Framework, and other MDBs.
“This is a very important development, even though we still have to ensure it is properly rechanneled.
“It was a bigger development because the 20 billion dollars ceiling that the IPAC Board approved will allow us to leverage that as MDB at least four times.
“And that will deliver at least 80 billion dollars of additional financing to our countries. So this is a very important development.’’
Adesina said, “we have heard over the past four days about the importance of partnerships, so let us dream together for a better Africa, let us turn our dreams into reality.
“He thanked the government of Kenya for its support and for making the 2024 AfDB Annual Meetings a reality.
“He also thanked the various stakeholders, partners, AfDB staff, and everyone else who ensured the success of the meeting.
“We leave Kenya with hope and excitement—hope for a brighter future for Africa and for a brighter 60 years ahead for the AfDB. We leave with such fun memories.”
Also, Prof Njuguna Ndung’u, the Cabinet Secretary, National Treasury and Economic Planning of Kenya and Chair, AfDB Board of Governors, reiterated the importance of rechanneling the SDRs.
“We all acknowledge the critical and urgent need to reform the global financial architecture.
“The reforms explain the role of the multilateral development banks and build capacity to enable fit-for-purpose financial instruments that can adopt the changing circumstances.
“Our strong support goes to the rechanneling of the SDRs to Africa through AfDB, and this will signal the capacity of the bank,’’ he said,
Ndung’u commended all stakeholders for their support, presence, and role in making the meeting successful.
While reiterating the various challenges on the continent, Ndung’u urged for a stronger AfDB that could work and address the various challenges of Africa for a brighter future.
According to him, the theme of the meeting has been well executed, with ideas and action points to implement the road map.t
“The meeting clearly outlines the pressing development imperatives of Africa’s transformative progress.
“The recommendations by the governors that AfDB should seek an independent route for the continents rating is quite encouraging
“I, therefore, convey my appreciation for all your efforts in achieving this meeting, which hosted more than 8,300 participants in Nairobi, Kenya.”
Ndung’u, who is currently Chair of the board of governors, thanked all the various stakeholders for their support, which he said helped strengthen the bank’s affairs.
“I humbly exit the role of chairperson on the board of governance of the AfDB.
“t+The honourable Governor for Cote d’Ivoire is ready to take the baton, which I am ready to pass on, and I will avail myself of consultation when required,’’ he said.
