African Development Bank Unveils Major Achievements and Future Plans at AU Meeting

The African Development Bank's general capital increase from $201 billion to $318 billion, approved in May during the Annual Meetings in Nairobi, was a major highlight.

At the 6th Mid-Year Coordination Meeting of the African Union (AU) in Accra, Ghana, Dr. Akinwumi Adesina, President of the African Development Bank Group, showcased the institution's recent successes and outlined its strategic goals for Africa’s development. Addressing heads of state, government leaders, and representatives from regional economic communities, Adesina highlighted key developments including a significant capital increase and groundbreaking financial initiatives.

The African Development Bank's general capital increase from $201 billion to $318 billion, approved in May during the Annual Meetings in Nairobi, was a major highlight. This enhancement will enable the Bank to maintain its AAA credit rating and better address Africa's urgent and growing development needs.

Adesina also detailed a collaborative effort with the Inter-American Development Bank to develop a new financial model allowing the International Monetary Fund’s Special Drawing Rights to be channeled through multilateral development banks. “After over two years of work, supported by the African Union’s advocacy, we have succeeded,” he announced, reflecting on the achievement’s significance.

In addition, the Bank launched a pioneering $750 million hybrid capital instrument, marking the first of its kind by a multilateral financial institution. This innovative financial tool is set to quadruple the Bank's lending capacity, creating a new asset class for global investors.

Adesina highlighted the Bank’s ongoing efforts to include Africa’s natural wealth in global GDP measures, and the progress of the Africa Financial Stability Mechanism, designed to shield African economies from financial and external shocks. The framework for this mechanism has been approved by the African Union’s committee of 15 Finance Ministers.

A major new initiative is the $650 million Regional West Africa Rice Development program, in partnership with the Africa Rice Center. This project aims to include one million farmers across 15 countries and achieve rice self-sufficiency in West Africa within five years. Adesina pointed to Ethiopia’s rapid transition to wheat self-sufficiency as a model for success.

Adesina also noted the Bank’s growing global recognition, including being ranked the most transparent development financial institution by Publish What You Fund. This follows recent achievements such as expanding electricity access to over 20 million people and partnering with the World Bank to connect 300 million Africans to electricity by 2030. The Bank’s $20 billion Desert to Power initiative, aimed at developing 10,000 megawatts of solar power for 250 million people in the Sahel, is already producing results, including the $890 million Mauritania-Mali Power Interconnection Project.

President Nana Addo Dankwa Akufo-Addo of Ghana called for accelerated actions to achieve financial stability and economic integration as part of the African Union’s Agenda 2063. AU Chairperson Mohamed Ould Ghazouani, President of Mauritania, announced plans to raise $100 billion to support export-oriented businesses and stressed the importance of effective coordination between the AU and regional blocs to achieve continental integration and sustainable development.

The meeting underscored the African Development Bank’s critical role in advancing Africa’s development goals and highlighted ongoing efforts to foster economic growth, infrastructure development, and regional cooperation across the continent.