(3 Minutes Read)
The new strategy is based on two major objectives: accelerating inclusive green growth and fostering prosperous and resilient economies. To achieve these objectives, the Bank is focusing on several priorities: lighting up Africa and supplying it with modern and affordable energy
The AfDB has defined its new strategy for the next ten years in its last annual meeting. It has decided to increase the capital from USD 201 billion to US$318 billion, an increase necessary to maintain the triple-A rating of the institution, the key to borrowing on the financial markets at low rates.
The new strategy is based on two major objectives: accelerating inclusive green growth and fostering prosperous and resilient economies. To achieve these objectives, the Bank is focusing on several priorities: lighting up Africa and supplying it with modern and affordable energy. Ensuring food security through agricultural transformation. Improve the living conditions of women and young people and invest in human capital and sustainability.
Recognizing the crucial role of the private sector, the AfDB intends to mobilize resources from various sources, including private financing. It will strengthen its collaboration, prioritizing investments in businesses, value chains, and SMEs. This financial strategy aims to triple private sector financing by 2033 and strengthen its financing capacity through innovative mechanisms.
Read Also:
https://trendsnafrica.com/africa-to-grow-as-second-fastest-region-after-asia-afdb-report/
Africa also wants to free itself from financial markets. The AfDB Board of Governors has called for the creation of an African rating agency. The objective is to establish a new culture of evaluation that takes into consideration the different specificities of African economies. This will save more than $75 billion due to “unfair” ratings by international rating agencies.
