Arab-Africa Financial Consortium to promote Africa’s rapid growth

Chairman of the Board of Directors of the Arab Bank for Economic Development in Africa (BADEA), Dr. Fahad Aldossari, has assured African leaders, financial institutions, and business leaders that the newly established Arab-Africa Financial Consortium (AAFC) will diligently work towards achieving its objective of promoting Africa’s rapid development over the next 50 years.
Speaking at a leaders’ breakfast as part of the launch of the AAFC and BADEA’s 50th anniversary celebrations in Accra on Sunday, July 21, 2024, Dr. Aldossari acknowledged the pivotal role of Ghana’s President and African Union Champion of Financial Institutions, President Nana Addo Dankwa Akufo-Addo, in the establishment of the consortium.
Dr. Aldossari announced immediate steps to institutionalize the AAFC by establishing a secretariat to host and coordinate its activities.
“Today is also a special day as we feel honored 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,” he said.
He further affirmed BADEA’s commitment to ensuring the consortium’s success in realizing the vision of Arab-Africa financial institution collaboration.

Critical investments
President Akufo-Addo, in his keynote address, highlighted BADEA’s significant role in Africa’s development over the past 50 years.
He expressed confidence that the establishment of the AAFC would lead to even more exciting progress in the relationship between the Arab world and the African continent over the next five decades.
Akufo-Addo emphasized four key areas for the AAFC to focus on: investment in human capital, infrastructure development, trade and investment growth, and women and youth empowerment. “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,” he said.
He noted that BADEA has financed over 700 projects in more than 44 African countries, with a total value exceeding $6 billion, creating jobs, improving living standards, and sparking economic growth across the continent.

Five pivotal areas
Dr. Adesina Akinwumi, President of the African Development Bank Group, outlined five critical issues for the reinvigorated Arab-Africa partnership to address: energy development, exploitation of the continent’s rich green mineral resources, mobilization of support for green infrastructure, food security, and leveraging 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,” Dr. Akinwumi said.
He expressed confidence in the potential of the Arab and African financial institutions’ partnership to deliver even more results.

BADEA’s legacy and future
BADEA was established under the resolution of the 6th Arab Summit Conference in Algiers on November 28, 1973, and began operations in March 1975.
Owned by 18 Arab member countries of the League of Arab States, BADEA operates as an independent international institution with full legal status and autonomy.
The Arab Coordination Group (ACG), an alliance of Arab development institutions, has partnered with BADEA to launch the AAFC.
The ACG includes several key institutions such as the Abu Dhabi Fund for Development, the Arab Fund for Economic and Social Development, and the Islamic Development Bank.
Other significant partners in the AAFC include the Abu Dhabi Investment Authority, SaudiExim Bank, and the Qatar Investment Authority, among others.
Dr. Aldossari highlighted BADEA’s impactful projects across Africa, including financing airports, road networks, healthcare, and education services.
He emphasized BADEA’s commitment to addressing development challenges, including responses to COVID-19 and climate change.
“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,” President Akufo-Addo said.
The AAFC is set to play a transformative role in Africa’s development, leveraging resources and fostering collaboration between Arab and African financial institutions to create a more prosperous, inclusive, and sustainable future for the continent.