Dr Akinwumi Adesina, president of the African Development Bank Group, emphasised the urgent need for a "bold and innovative approach" from Multilateral Development Banks (MDBs) to effectively address the rapidly evolving challenges facing the world.
Adesina highlighted several transformative initiatives that align with both the Sustainable Development Goals and the African Union's Agenda 2063.
The African Development Bank president was speaking on Tuesday 30 April at the Islamic Development Bank's 50th-anniversary symposium, titled Envisioning Future Value Propositions for MDBs: New Horizons for Cooperation. He was joined on the high-level panel by Dr Muhammad Al Jasser, Islamic Development Bank (IsDB) President, Cameroon's Minister of Economy, Planning and Regional Development, Mr. Alamine Ousmane Mey, and the World Bank's 'Vice President, Middle East and North Africa Dr Ousmane Dione.
Their discussions focused on the evolving roles of Multilateral Development Banks (MDBs) in tackling the complex challenges confronting the Global South.
"We live in a world of massive challenges, a world which is fast-changing, and that will require a new approach," Adesina said, stressing, "No one can do it alone. We have to walk together, and we have to do it in a way that is innovative, impactful, and most importantly, in a way which is bold and faster."
Dr Adesina underscored the African Development Bank's commitment to its transformative High 5 priorities--Light Up and Power Africa, Feed Africa, Industrialize Africa, Integrate Africa, Improve the Quality of Life for the People of Africa--which are closely aligned with the Sustainable Development Goals and the African Union's Agenda 2063. An independent review by the United Nations Development Program, he said, found that, "If Africa achieves these High 5s, it will have achieved 90% of all the Sustainable Development Goals and Agenda 2063."
He revealed that during the finalisation of the Bank Group's recently approved Ten-Year Strategy, member countries resoundingly endorsed the continuation of the High 5s, adding that, "In the last eight years, our work has impacted on 400 million people."
He emphasised the critical importance of increasing concessional financing for low-income countries, particularly in Africa. Africa's share of commercial debt had risen from 17% to 44% between 2000 and 2024, he said. "We cannot be developing based on commercial debt," he said, calling for a significant increase in concessional financing across all multilateral development banks. He specifically advocated for tripling the resources of the Bank Group's concessional arm, the African Development Fund, to at least $25 billion for its next three-year replenishment cycle.
He also showcased some of the financial innovations the African Development Bank has introduced to mobilize more funding for Africa. "The other thing we are doing to increase the level of financial concessional financing for these low-income countries is that we got approval from our Board of Governors to take the equity we have accumulated inside the African Development Fund to go to the capital markets and leverage more money. That alone will allow us to actually leverage $27 billion additionally for moderately concessional financing for those countries."
The Islamic Development Bank's Al Jasser unveiled plans to double project approvals and disbursements to $364 billion over the next decade to accelerate sustainable development across its member countries. The initiative aims to leverage innovative financing strategies and partnerships to catalyse economic growth and development in the Global South.
Cameroon's Ousmane Mey outlined a comprehensive vision for MDBs centred around sustainable development financing at scale, support for macro stability and structural reform, and promoting a vibrant private sector.
He urged MDBs to prioritize scalability in their interventions and adapt their strategies to better align with the national agendas of member countries, thereby ensuring that development initiatives are both effective and sustainable.
In response, Al Jasser underscored IsDB's dedication to member-driven development. "Throughout the 50 years, the institution has financed more than 12,000 projects. It was really what the countries needed, and in their own thinking, in their own way, within their own plans."
He stressed that this initiative will not only enhance IsDB's capacity to effect change but also develop genuine partnerships with member countries.
The World Bank's Dione emphasized the importance of regional collaboration and integration as essential strategies for addressing the pressing challenges in the Global South.
Dione highlighted the need for MDBs to foster a deeper understanding of the complexities within different regions, advocating for tailored solutions that respect the unique socio-economic contexts of each area.
He underscored the importance of leveraging collective knowledge and resources to create impactful, sustainable outcomes that propel regional development forward.
The symposium reaffirmed the urgency to reshape the future of development finance, ensuring that MDBs remain indispensable catalysts of sustainable progress and prosperity in the Global South.
The African Development Bank's Adesina encapsulated the consensus from the discussions, stating, "It's not about your bank, it's not about your flag. It's about how our hands connect to allow us to scale and accelerate the development of people."
