AfDB Fosters Strategic Partnership with Arab Finance Institutions to Bridge Development Gap

The African Development Bank (AfDB) aims to strengthen its collaboration with Arab development finance institutions to address the growing development financing gap exacerbated by Western donors' retreat. The new partnership focuses on long-term investments in infrastructure and job creation, with a $402 billion annual gap identified by AfDB President Sidi Ould Tah.

On Tuesday, the African Development Bank (AfDB) convened in Abidjan for its inaugural meeting with Arab development finance institutions. This strategic move seeks to attract more cash flow from these entities as Western donors pull back their contributions.

AfDB President Sidi Ould Tah, who assumed leadership of Africa's largest development lender last year, underscored the importance of tightening relations with the Arab Coordination Group (ACG). The collaboration, including key players like the Arab Bank for Economic Development in Africa and the OPEC Fund for International Development, aims to bridge a widening gap in development finance.

By focusing on co-financing long-term projects in areas such as industrialization and job creation, the sides inked a declaration outlining new engagement terms. The OPEC Fund's Rami Ahmad highlighted a coordination platform for big-ticket spending across regions. The AfDB's annual financing gap is pegged at $402 billion, straining essential projects in infrastructure, agriculture, and more.

(With inputs from agencies.)