AfDB to Boost Infrastructure Funding Amid Accelerating African Growth

The African Development Bank (AfDB) is poised to increase infrastructure funding as Africa's economic growth is projected to accelerate. According to AfDB President Akinwumi Adesina, growth is expected to rise to 3.7% this year and 4.3% next year, up from 3.1% in 2023. Speaking at the bank's annual meeting, Adesina highlighted the resilience of African economies despite challenges such as climate change, geopolitical tensions, global inflation, and rising debt.

Over the past nine years, the AfDB has invested more than $50 billion in infrastructure projects across the continent.

Adesina also mentioned that the International Monetary Fund (IMF) recently approved the use of Special Drawing Rights (SDRs) by multilateral banks like the AfDB. SDRs are interest-bearing international reserve assets allocated to IMF member countries based on their shareholding.

Adesina expressed optimism that channeling the approved $20 billion SDR limit to multilateral development banks could enable the AfDB to leverage up to $80 billion in new financial support.

The bank is actively involved in several major infrastructure projects, including raising $3.2 billion for the East Africa standard gauge railway, which will connect Tanzania, the Democratic Republic of Congo, and Burundi. Additionally, the AfDB is providing $500 million for the development of the Lobito Corridor, aimed at linking Zambia, Angola, and the Democratic Republic of Congo.