This came as he delivered a powerful message at the Islamic Development Bank’s 50th anniversary celebrations in Riyadh, Saudi Arabia.
The AfDB President championed the importance of multilateral development banks in tackling these challenges through enhanced collaboration and innovative financial solutions.
He also highlighted the AfDB’s successful “High 5” program – Light Up and Power Africa; Feed Africa; Industrialize Africa; Integrate Africa; and Improve the Quality of Life for the People of Africa – as a cornerstone for progress on the continent. Notably, achieving these goals would contribute to nearly 90% of Africa’s SDGs.
Adesina pinpointed five key areas demanding immediate action and novel funding mechanisms: climate change, food security, energy access, health security, and mobilizing resources for the SDGs.
First of which is climate change, Adesina underscored it as the most significant threat to achieving the SDGs, highlighting the devastating impact of droughts, floods, and cyclones on African economies.
He decried the fact that Africa, the region most affected by climate change, receives the least amount of climate financing globally. The AfDB, Adesina revealed, has set an ambitious target of raising $25bn for climate adaptation by 2025.
Second, he addressed the issue of food insecurity, exacerbated by geopolitical conflicts, supply disruptions, and trade restrictions. He reaffirmed the AfDB’s commitment of $25bn to support Africa’s goal of self-sufficiency in food production by 2030.
He showcased the success stories of the Technologies for African Agricultural Transformation (TAAT) program, which has delivered climate-resilient crop varieties to millions of farmers. Additionally, he commended the Islamic Development Bank for its $7bn commitment towards the Feed Africa summit.
Moreover, Adesina highlighted the stark disparity in electricity access, with over 675 million people worldwide lacking electricity, and 80% residing in sub-Saharan Africa. He emphasized the AfDB’s efforts through the Desert-to-Power initiative, aiming to develop 10,000 megawatts of solar power across the Sahel and provide electricity access to 250 million people.
He also advocated for increased investment in health infrastructure and local pharmaceutical capacity in Africa to prepare for future pandemics. He pointed out the significant gap between the current annual investment of $4.5bn and the actual need of $25bn. To address this, the AfDB Group has pledged $3 billion for quality health infrastructure and another $3bn to develop the pharmaceutical industry in Africa. This includes establishing the Africa Pharmaceutical Technology Foundation to broaden access to vital technologies and intellectual property rights.
The final point is addressing the need for innovative financing. Notably, AfDB issued a landmark $750m in hybrid capital, a first for multilateral development banks, to function as equity and enhance lending capacity.
He also highlighted the AfDB’s collaboration with the Inter-American Development Bank to explore the use of Special Drawing Rights (SDRs) as hybrid capital, subject to IMF approval. This initiative has the potential to significantly amplify financial resources available for SDGs.
Furthermore, Adesina stressed the crucial role of the private sector in scaling up SDG investments. He advocated for leveraging the $128trn in global institutional investor assets through guarantees, project development, and addressing foreign exchange risks.
Adesina concluded by urging global leaders to take collective action to achieve the SDGs. He specifically supported the UN Secretary-General’s call for a $500bn annual SDG stimulus package and encouraged developed countries to increase their official development assistance. His message resonated powerfully: “Let’s give hope to the world by delivering on these goals for a sustainable and equitable future!”
