AfDB seeks closer ties with Arab funders to address development finance gap

The African Development Bank met Arab development finance institutions in Abidjan to secure more long-term funding as some Western donors retreat; the parties signed a declaration to coordinate co-financing and plan a platform for large regional projects, while AfDB president Sidi Ould Tah said the annual financing shortfall is about $402 billion.

The African Development Bank held its first meeting with the Arab Coordination Group in Abidjan to attract more financing as some Western donors reduce overseas spending. AfDB president Sidi Ould Tah said a more structured, strategic partnership is needed. The Arab Coordination Group includes the Arab Bank for Economic Development in Africa, the OPEC Fund for International Development and the Saudi Fund for Development. Tah said external shocks have widened Africa's development financing gap, which he estimated at $402 billion a year in December. Meeting outcomes: - The AfDB and the Arab Coordination Group met in Abidjan for their first formal discussion. - The sides signed a declaration setting out new terms of engagement, including co-financing priorities. - Rami Ahmad of the OPEC Fund for International Development said the approach will create a coordination platform to target long-term, large regional projects rather than one-off investments in individual countries. - Arab financial institutions have provided billions of dollars over the years for projects such as infrastructure, sanitation and farming. - AfDB president Sidi Ould Tah reported that external shocks have widened the development financing gap and cited a $402 billion annual shortfall in December. Summary: The agreement is intended to mobilise added long-term funding for priorities such as industrialisation and job creation across African economies. The parties plan to set up a coordination platform focused on big-ticket, regional spending; no implementation timeline was provided. Undetermined at this time.