Joy Agwunobi
Akinwumi Adesina, President of the African Development Bank Group (AfDB), has underscored the pressing need for increased financing to support Africa’s Sustainable Development Goals (SDGs) in light of growing global economic pressures and the persistent effects of the Covid-19 pandemic.
Citing the $4 trillion annual funding shortfall for the SDGs, up from $2.5 trillion in 2015, Adesina highlighted the critical role that multilateral development banks must play in driving innovative financial solutions and collaborating more closely to meet these urgent needs.
Speaking at the Islamic Development Bank’s 50th anniversary in Riyadh, Saudi Arabia, where he addressed a audience of high-level officials, financial leaders, and private sector representatives, Adesina expressed worry that a yearly financial gap of $4 trillion could hinder SDG progress by 2030.
To address this issue, the AfDB president underlined the central role of the African Development Bank’s High five programme in driving Africa’s progress towards achieving the SDGs, citing independent analysis from the United Nations Development Programme (UNDP) that supports this notion.
The AfDB’s core priority areas which is referred to as the High 5s, namely Light Up and Power Africa, Feed Africa, Industrialise Africa, Integrate Africa, and Improve the Quality of Life for the People of Africa, are being championed as a strategic blueprint to accomplish 90 per cent of the SDGs for Africa. The bank’s president further identified five key areas that require immediate attention and innovative funding solutions including:
Climate Change
Adesina stressed that climate change poses the most significant threat to achieving the Sustainable Development Goals (SDGs). Africa is the worst affected region, yet it receives the least amount of climate financing. The continent requires $277 billion annually to address climate change, but currently receives only $30 billion.according to him the AfDB African aims to raise $25 billion for climate adaptation by 2025.
Food Security
On the aspect of food security, he highlighted the need to address volatile food prices, which have been exacerbated by geopolitical conflicts, supply disruptions, and trade restrictive practices adding that the AfDB has committed $25 billion to support Africa in becoming self-sufficient in food by 2030. He also noted that the Technologies for African Agricultural Transformation (TAAT) programme has made significant strides in improving food security across Africa. Through TAAT, 13 million farmers have received climate-resilient crop varieties of wheat, maize, and rice.
Energy Access
Adesina highlighted the disparity in electricity access, where over 675 million people worldwide lacked electricity, with 80 per cent of them in sub-Saharan Africa. He noted the bank’s Desert-to-Power initiative which aims to develop 10,000 megawatts of solar power across the Sahel, providing electricity access for 250 million people.
Health Security
The AfDB President further advocated for increased investment in health infrastructure and local pharmaceutical capacities to prepare for future pandemics, noting that the current annual investment of $4.5 billion in health infrastructure is significantly insufficient, with an actual need of $25 billion. Additionally, he noted that the bank has made a commitment to improving healthcare in Africa, allocating $3 billion for quality health infrastructure and an additional $3 billion for developing the pharmaceutical industry, stating the investment will enable the local production of medicines and vaccines, thereby reducing reliance on external supplies.
Mobilising resources
Adesina discussed innovative financing initiatives, including the bank’s issuance of $750 million in landmark hybrid capital and pioneering the use of Special Drawing Rights (SDRs) with the Inter-American Development Bank. Adesina also highlighted the critical role of the private sector in scaling up SDG investments from billions to trillions. He advocated for harnessing the power of global institutional investor assets through more extensive use of guarantees, development of investable projects, and addressing foreign exchange and currency risks.
To realise the ambitious goals of the 2030 Agenda for Sustainable Development, Adesina stressed the need for collective action. He implored all present to rally behind the UN secretary general’s call for a $500 billion annual SDG stimulus package, noting that developed countries must step up their support by allocating at least 0.70 per cent of their gross national income to official development assistance. “Let us come together to deliver on these critical goals and give hope to the world for a sustainable and equitable future,” he said.
Also spaeking, Mohammed Al Jasser, the president of the Islamic Development Bank (IDB), stated that crises such as climate change, the pandemic, and ongoing conflicts continue to jeopardise the progress achieved over the years. He further noted that the global financial system has failed to keep pace with the urgency required to achieve the Sustainable Development Goals (SDGs).
According to Al Jassser, collective efforts are necessary to create a global financial system that promotes inclusivity, equity, and sustainability. He also highlighted the value of Islamic finance in this context, as it prioritises the well-being of individuals and the planet, in addition to financial returns.
The IDB president pointed out that the principles of Islamic finance, including shared prosperity, risk-sharing, and ethical investment, offer a clear solution to bridging the SDGs financing gap.
