The Board of Governors of the African Development Bank Group has approved management’s request to leverage the equity of the African Development Fund, to mobilize more resources on the capital markets. The Fund is the Bank’s concessional lending window.
The Bank Group President Dr. Akinwumi Adesina noted that when fully implemented, the Bank Group could unlock up to $27 billion to help low-income and fragile states.
“What this means is that when this is launched, we can raise an additional $4 billion or even more per cycle [every three years] for these least developed low-income countries.”Dr. Akinwumi Adesina
With nearly half its recipient countries classified as fragile states, the African Development Fund contributes to poverty reduction and socioeconomic development in those countries by providing concessional funding for their projects and programs. Nine of the ten world’s most vulnerable countries to climate change are in Sub-Saharan Africa and rely on the resources of the Fund.
In a declaration issued at the end of the meetings, the Bank’s Governors stressed the need for substantial financial resources to support climate adaptation in Africa. This must include the delivery of wealthy nations’ commitment to mobilize $100 billion per year in climate finance for developing countries.
“We call for urgent action to double the collective provision of climate finance for adaptation, and operationalization of new funding arrangements to respond to loss and damage as per decisions of the Conferences of the Parties to the United Nations Framework Convention on Climate Change and the Conference of the Parties to the Paris Agreement, the last sessions of which were held in Sharm El Sheikh, Egypt.”Dr. Akinwumi Adesina
The Poorest Countries In Africa
Meanwhile, according to the World Bank’s latest data, the poorest countries in Africa by GNI per capita are mostly located in sub-Saharan Africa. One of the regional trends that can be observed is that the top 10 poorest countries in Africa are mainly those that have suffered from political instability, conflicts, and a lack of economic development. These factors often lead to high poverty rates, low life expectancy, and poor education outcomes.
The ten poorest countries In Africa are Western Sahara, Burundi, Somalia, Central African Republic (CAR), Mozambique, Madagascar, Sierra Leone, the Democratic Republic of the Congo (DRC), Niger, and Eritrea.
Western Sahara is the poorest country in Africa, with a GNI per capita of $56. Burundi is the second poorest in Africa, with a GNI per capita of $220. Somalia, the third poorest African country, has a GNI per capita of $430. The Central African Republic, which ranks fourth, has a GNI per capita of $480.
Moreover, Mozambique is the fifth poorest country in Africa, and Madagascar, the sixth poorest African country, both have a GNI per capita of $490. Sierra Leone, the seventh poorest African country, has a GNI per capita of $500. The Democratic Republic of the Congo is the eighth poorest country in Africa and has a GNI per capita of $550. Niger, the ninth-poorest, has a GNI per capita of $590. Finally, Eritrea is the tenth poorest country in Africa, with a GNI per capita of $610.
Therefore, this fund will be able to help these low income countries to meet some developmental needs.