Canada reaffirmed its partnership with the African Development Bank Group during a meeting between Cheryl Urban, Canada's Assistant Deputy Minister responsible for International Affairs for Sub-Saharan Africa, and the Bank's Senior Vice President, Bajabulile Swazi Tshabalala.
Urban visited the Bank's headquarters in Abidjan on Monday, 25 March 2024. The meeting provided an opportunity to discuss strengthening ties between the Bank, the premier development institution in Africa, and Canada, a key shareholder.
The discussions centered on gender mainstreaming in the Bank's operations, combating climate change, promoting youth employment, reforms to development finance institutions, innovations and the Bank's prospects following the recent adoption of its new ten-year strategy.
"The partnership with Canada is very important for us. Not only is it solid, but there are several things I have always appreciated about the African Development Bank, including its capacity to innovate, particularly concerning the reform of the multilateral banks' capital adequacy mechanisms," Urban said.
Referring to last year's Africa Climate Summit, Urban highlighted the growing call for change in the international financial system regarding climate finance, accessibility, and the demand for concessional loans, emphasizing the need for a louder and more united voice from Africa.
Urban expressed Canada's readiness to assume the presidency of the G7 in 2025 and sought insights from the Bank's leadership on pertinent issues.
Tshabalala and the team of other Bank senior management highlighted the various interventions by the Bank to promote gender parity, notably its AFAWA (Affirmative Finance Action for Women in Africa) initiative, which aims to cover the $42 billion funding deficit for businesses owned or led by women.
Internally, the Bank has joined the EDGE (Equity, Diversity and Gender Equality) initiative. "The Bank's new ten-year strategy states that all our activities must take full account of gender; it is a target on which the institution's Board of Directors has been very clear," Tshabalala emphasized.
Climate change
In 2023 alone, the Bank devoted more than 40% of its resources to climate funding. It is the only development finance institution to have allocated more than 50% of its funding to climate change.
Tshabalala recalled the Bank's decision to stop funding coal projects as it prioritizes gas as a transitional energy source for Africa's development. Similarly, the Bank will support the development of new clean fuels for industrialization, including natural gas and green hydrogen, representing a clear alternative.
The African Development Fund, the Bank Group's concessional lending window, has approved the creation of a Climate Action Window as a specific mechanism aimed at assisting 37 of the most vulnerable countries on the continent. According to Tshabalala, the Window has already mobilized $429 million and is designed to devote 75% of its resources to adaptation, 15% to mitigation, and 10% to technical assistance and capacity building.
The senior vice president invited Canada to join donors such as the United Kingdom, Germany, and the Netherlands, whose contributions have allowed the Window to launch its first calls for projects.
"On climate funding, we have resources dedicated to identifying and mobilizing Canadian expertise to help tackle certain challenges," said Michel Lacourcière, economic adviser at the Canadian embassy in Côte d'Ivoire. "Perhaps this is an avenue to explore for our cooperation in the area of climate change."
The Senior Vice-President spoke about the Bank Group's ten-year strategy, which the Board of Directors recently adopted. The strategy, which is aligned with the African Union's Agenda 2063 and the Sustainable Development Goals, takes account of current discussions on the reform of the multilateral funding system and global and regional public goods.
She said Canada could also provide significant support in health, education, and security.
Concerning support for young people, Tshabalala said the Bank had created the Youth Entrepreneurship Investment Banks or YEIBs, and was also investing in the African Guarantee Fund, since "guarantees are very important in some countries."
The Bank collaborates closely with other multilateral development banks to tackle unique challenges for Africa, such as infrastructure funding.
"We are counting on your support as shareholders and development partners," Tshabalala said. "Canada can also get involved in the Bank's numerous multi-donor trust funds or youth entrepreneurship investment banks."
Tshabalala invited Canada and Canadian businesses to participate in the next Africa Investment Forum scheduled for December in Rabat, Morocco.
Alongside Tshabalala were Catherine Baumont-Keita Director in the Office of the Senior Vice-President and Management Operations Department, Yvette Glele Ahanhanzo, director of the front office of the Regional Integration Development Complex, Valerie Dabady, division manager for the Resource mobilisation, Finance and Policy and Keffo Hervé PiKam, head of the Trust Funds Division, with responsibility for the Bank's relationship with Canada.
