The Arab Bank for Economic Development in Africa (BADEA) is set to launch a significant initiative aimed at reaching one million small and medium-sized enterprises (SMEs) across Africa.
This initiative is part of three pivotal partnerships BADEA will sign with key stakeholders to foster the continent’s development.
The strategic advisor to the president of BADEA, Fatima Elsheikh, announced at a press briefing on Thursday (July 18) that these critical partnerships will be formalized on Sunday (July 21) in Accra. She emphasized that these agreements represent transformative steps for the next 50 years of the bank.
One of the key partnerships includes a memorandum of understanding (MoU) with the secretary general of AfCFTA, Wamkele Mene, to establish a unified African trade facility. Additionally, a partnership aimed at enhancing the competitiveness of African exports will be signed, alongside the launch of a joint report with the Africa Capacity Building Foundation (ACBF).
At the event on Sunday (July 21), BADEA will also call for greater Arab-Africa financial cooperation through the formation of an Arab-Africa Financial Consortium (AAFC). This consortium will unite Arab and African development financial institutions to strengthen economic, financial, and technical cooperation between the two regions.
BADEA, established in 1974, will celebrate its 50th anniversary under the theme “Prosperity through Partnership: 50 Years of Arab-Africa Cooperation for Development” at the event in Accra. This milestone will be marked during the AU Mid-Year Coordination Meeting (MYCM), in collaboration with the Presidency of Ghana and the African Union (AU) Commission.
The leaders’ breakfast event will not only celebrate BADEA’s five decades of development finance but also serve as the inaugural platform for exploring the establishment and implementation mechanisms for the AAFC.
In the Arab world, BADEA is a member of the Arab Coordination Group (ACG), a consortium of 10 Arab development institutions that leverage their collective resources to maximize development impact globally. In November 2023, the ACG pledged USD 50 billion in new investments towards Africa by 2030, underscoring a strong commitment to the continent’s development priorities.
On the African continent, BADEA is an observer member of the Alliance of African Multilateral Financial Institutions (AAMFI), which aims to shape Africa’s financial future. BADEA’s strategic position bridges the development interests of both regions.
The establishment of the AAFC is expected to significantly boost economic development and cooperation between the Arab and African regions. It will serve as a powerful vehicle to achieve ambitious targets by leveraging the collective financial strength of its members, promoting sustainable development, and addressing common challenges.
The session will also focus on key areas such as institutional frameworks, funding mechanisms, investment priorities, capacity building, and regional integration.
It will highlight BADEA’s role as a unique partnership bridge dedicated exclusively to Sub-Saharan Africa, envisioning a future of enhanced collaboration driving prosperity and unity between the two regions.