AfDB Annual Meetings: Closing Africa’s financing gap

Africa is facing a daunting challenge in bridging the financing gap for essential development projects. Rufus Darkortey, Executive Director of the African Development Bank (AfDB), emphasized the urgent need for increased funding to support critical sectors such as infrastructure, energy, private sector growth, and agriculture. However, the funding available falls short of the vast requirements, hindering Africa's progress. Darkortey highlighted the various external shocks, including climate and geopolitical events like the Russian invasion of Ukraine, which further strain African economies. Despite the efforts of AfDB and other multilateral institutions to mobilize resources, Darkortey stressed the importance of African countries taking proactive steps to enhance internal resource mobilization. One key strategy is leveraging national budgets to boost tax revenues and expand the tax base, without imposing additional tax burdens on citizens. By committing to utilizing their own resources and creating an enabling environment for the private sector, African nations can accelerate economic growth and development. Darkortey also emphasized the significance of addressing climate change financing to mitigate its adverse effects and promote sustainability. Additionally, Darkortey shed light on the formation of the BDIR cluster within the AfDB, comprising 15 countries dedicated to supporting and strengthening the bank's initiatives. Notably, these countries have pledged to contribute $1 million each to the AfDB, demonstrating their commitment to fostering growth and prosperity in Africa.