The African Development Bank President, Akinwumi Adesina has made strong case for the International Monetary Fund (IMF) to channel $100 billion Special Drawing Rights (SDR) loan through the bank.
Speaking at the weekend during the visit by the United States Congressman Gregory Meeks to African Development Bank Group in Côte d’Ivoire, Adesina said the AfDB remains a prescribed holder of SDRs, with AAA credit rating.
“It is advocating that these funds be channeled through the Bank as a prescribed holder of SDRs, and as an institution which has a AAA credit rating. “SDRs offer African countries a tremendous opportunity to deal with debt,” the Adesina said.
According to the AfDB boss, African economies were rebounding, but the continent faced mounting commercial debt, the adverse impacts of climate change, lack of opportunities for youth, and poor access to Covid-19 vaccines.
Meeks, who is the Chairman of the US House Foreign Affairs Committee, warned that the United States will only be part of the future if it invests in Africa now.
“If the United States is not investing in Africa today – especially when we look at the size of Africa’s youth population, which is larger than America’s entire population– then we are not going to be a part of the future,” Meeks said.
He added: “My singular focus had been to make sure Africa moves “from the back to the front. There’s a lot of work to do. Governments can’t do it alone. The African Development Bank will play a big role. When Prosper Africa needs guidance, I will point them to the African Development Bank.”
Continuing, Adesina also looked ahead to the 16th replenishment of the African Development Fund, the African Development Bank Group’s concessional lending arm. The AfDB boss said he is promoting reform of the Fund to enable it to leverage its equity and tap into capital markets in support of Africa’s low-income countries.
Adesina thanked the United States for its continued support, including support for the Bank’s general capital increase in 2019, which saw its capital base rise from $93 billion to $208 billion.
Adesina said the United States, the second-largest shareholder of the Bank, was “working with the right institution.” “We are African, we understand the needs of Africa, and we are driving change in Africa,” he said.
Adesina and the visiting members of Congress agreed on the need for closer cooperation between the African Development Bank and US investors.
Meeks was accompanied by Congressman Ami Bera of California, Congresswoman Ilhan Omar of Minnesota, Congresswoman Joyce Beatty of Ohio, Congressman G.K. Butterfield of North Carolina, Congresswoman Brenda Lawrence of Michigan, and Congressman Troy Carter of Louisiana.
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