AfDB Seeks To Enhance Infrastructure Investment Amid Rising African Growth

Africa’s economic growth is projected to rise to 3.7% this year and 4.3% next year, up from 3.1% in 2023, African Development Bank (AfDB) President, Dr. Akinwumi Adesina, announced on recently. He expressed optimism that the bank could increase infrastructure investment with assistance from the International Monetary Fund (IMF).

“African economies are showing remarkable resilience despite challenges such as climate change, geopolitical tensions, global inflation, and rising debt,” Dr. Adesina stated at the bank’s annual meeting.

Over the past nine years, the AfDB has invested more than $50 billion in infrastructure projects across the continent.

Dr. Adesina highlighted a recent development where the IMF approved multilateral banks, including the AfDB, to lend against the Fund’s Special Drawing Rights (SDRs). SDRs are interest-bearing international reserve assets allocated to IMF member countries based on their shareholding.

“If the approved limit of $20 billion in SDRs is channelled to multilateral development banks like ours, the AfDB can leverage this to provide at least $80 billion in new financial support,” Dr. Adesina said.

The AfDB is actively involved in major infrastructure projects, including raising $3.2 billion for the East Africa standard gauge railway connecting Tanzania, the Democratic Republic of Congo, and Burundi. Additionally, the bank is contributing $500 million towards developing the Lobito Corridor, which will link Zambia, Angola, and the Democratic Republic of Congo.