Faith Nyasuguta
In a landmark move to enhance economic collaboration, Africa and the Arab World have announced a significant new initiative. Building on a 50-year partnership, the African Union (AU) and the Arab Bank for Economic Development in Africa (BADEA) revealed plans for the Arab-Africa Financial Consortium (AAFC) at the 6th AU Mid-Year Coordination Meeting in Accra, Ghana.
Fahad Aldossari, Chairman of BADEA’s Board of Directors, highlighted the consortium’s mission: “BADEA will spare no effort in ensuring this consortium succeeds in realizing the vision of Arab-African financial institution collaboration and coordination for leveraging resources for the continent.” This initiative shows BADEA’s ongoing commitment to fostering economic development across Africa since its inception in 1974.
BADEA has been instrumental in supporting critical projects across key sectors such as infrastructure, agriculture, and education, contributing significantly to Africa’s development. This commitment has been a cornerstone of the Arab organization’s strategy over the past five decades.
The AAFC aims to mobilize financial resources to support Africa’s growth, reflecting a broader trend of international interest in the continent’s economic potential. Notably, Turkey is among the countries currently seeking to expand its influence in Africa.
As part of the Arab Coordination Group (ACG)—an alliance of Arab development institutions—BADEA collaborates with Turkey and other partners to coordinate financial and technical assistance in both the Arab world and Africa. In November 2023, the ACG pledged an impressive USD 50 billion in new investments towards Africa by 2030, indicating the commitment of Arab partners to the continent’s development priorities.
BADEA’s role as an observer member of the Alliance of African Multilateral Financial Institutions (AAMFI) further solidifies its strategic position at the intersection of Arab and African development interests. The AAFC focuses on creating robust institutional frameworks, funding mechanisms, investment priorities, capacity building, and fostering regional integration.
The launch of the AAFC represents a transformative initiative aimed at leveraging collective financial strength to promote sustainable development and address shared challenges. As Africa and the Arab World deepen their economic ties, the vision of prosperity through partnership becomes increasingly achievable.
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