Support African economies to battle global challenges – Veep

Africa Development Fund

Vice President Dr. Mahamudu Bawumia has urged the Africa Development Bank (AfDB) and Africa Development Fund to offer more support to African economies amid ongoing global economic challenges.

Dr. Bawumia was speaking at the closing ceremony at AfDB’s three-day Annual General Meeting in Accra, and said the AfDB has lived up to its billing of being at the forefront of the continent’s development. But he added that the time has come for the Bank to even do more, with African countries facing the effects of global economic challenges.

“The AfDB’s performance over the years has proved the ingenuity and vision of our forebears. As it was envisioned at the beginning, the Bank has evolved to become integral to the sustained and inclusive development of this continent. It is now a triple-AAA rated financial institution, winning global awards and delivering the needed support for its people,” Dr. Bawumia said.

Aside from the immense socio-economic interventions – especially in infrastructure, agricultural modernisation, social protection and entrepreneurial development – he observed that the bank is at the forefront of seeking fairness for Africa in the global arena.

“These efforts have substantially improved inequality, vulnerability and fragility on the continent. Together with the millions of people across Africa, we say ‘thank you’ for your continued belief in the African cause and the African dream.

“Having contributed so much in building African economies, today the bank is challenged even more than ever to do more. Our economies are facing the fall-outs from the Russia-Ukraine war, which are compounding the existing socio-economic vulnerabilities triggered by the COVID-19 pandemic,” he said.

The Vice President noted that following the fallout from external global factors, the continental average real growth rate is projected to decline from 6.2 percent in 2021 to 4.1 percent in 2022; and the short-term economic consequences in the form of rising inflation, subdued growth, increasing inequality and greater macro-fiscal instability are affecting cost of living on the African continent.

He therefore exhorted the AfDB and expressed optimism that the Bank “will rise to the occasion and help our economies scale these hard times”.

The Vice President – a former staff member of the AfDB – commended the Bank’s Board of Governors for their foresight in endorsing the broad framework of the Bank’s Strategic Outlook: 2023 – 2032 for the next 10 years to build a prosperous Africa, based on inclusive growth and sustainable development.

“It will be critical that through this Strategic Plan the AfDB works closely with the AU Commission and other sub-regional institutions to urgently operationalise and grow the African Financial Stability Mechanism. This will enhance protection for our economies from future shocks and enable us to join the list of regions with such economic buffer arrangements.”

“It is my view that successful implementation of this Strategic Plan will draw the continent closer to achieving the goals of Agenda 2063 and build the Africa we want, among others,” he said.

Dr. Bawumia thanked the President of the Bank, and its Governors for selecting Ghana to host the high-level annual meetings in Accra.


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